Archive · 6 Oct 2026
India’s Defence Boom Faces a Test of Execution and Deliveries
India’s defence companies have won many orders, but winning an order is only the first step.
They still need to build, test and deliver the equipment before the work shows up as revenue.
Elara Securities expects several companies to report higher sales in the September quarter.
It forecasts growth for aircraft maker HAL, electronics company BEL and missile maker BDL, among others.
Smaller companies that supply parts and training simulators also received orders.
Some big defence programmes are still delayed, so new orders may take time.
The key question is how quickly companies can complete the orders they already have.
The figures are estimates from Elara Securities, not company guidance.
Adjusted defence order inflows for major capital goods companies excluding Larsen & Toubro rose 19% year-on-year to Rs 8,600 crore in Q2FY27, Elara Securities said.
The increase came despite delays in major programmes including QRSAM, Project-75I and Next Generation Corvettes.
Elara expects Q2FY27 revenue growth at HAL, BEL, BDL, GRSE, Zen Technologies and Solar Industries, with estimates ranging from 12% to 50%.
Orders included BDL’s Rs 810.8 crore Indian Air Force contract and Zen Technologies’ simulator orders worth Rs 472.5 crore combined.
Specialist suppliers also received orders, including Astra Microwave’s Rs 2,205.2 crore Uttam Radar-related order and Data Patterns’ Rs 585.8 crore radar electronics order.
- Who
- Indian defence manufacturers and suppliers, including HAL, BEL, BDL, GRSE, Zen Technologies, Solar Industries, Astra Microwave and Data Patterns.
- What
- Defence order inflows increased, while attention shifted to converting existing contracts into production, deliveries and revenue.
- When
- Q2FY27, the September quarter referenced in Elara Securities’ October 5 preview.
- Where
- India.
- Why
- Revenue depends on companies manufacturing, integrating, testing and delivering equipment against orders; delays in major programmes also make timing uncertain.
Reasons for confidence
Execution risks
Order pipeline and revenue prospects
Reasons for confidence
Defence order inflows rose 19% year-on-year, and Elara expects double-digit Q2FY27 revenue growth at several companies.
Execution risks
Orders do not produce revenue immediately; manufacturing, integration, testing and delivery determine when contracts translate into financial results.
Timing of new programmes
Reasons for confidence
Orders in electronics, radar, simulators and specialised components show activity across a broad supplier ecosystem.
Execution risks
Large programmes including QRSAM, Project-75I and Next Generation Corvettes have faced delays, leaving the timing of new orders uncertain.
- Adjusted defence order inflows
- Rs 8,600 crore, up 19% year-on-year in Q2FY27 among major capital goods companies excluding Larsen & Toubro.
- Overall adjusted order inflows
- About Rs 35,000 crore, down 10% year-on-year for major capital goods companies excluding Larsen & Toubro.
- BDL order
- Rs 810.8 crore from the Indian Air Force for Satellite Smart Anti-Airfield Weapons and associated equipment.
- Zen Technologies orders
- Rs 295 crore for simulator supply and Rs 177.5 crore for tank and crew gunnery simulator upgrades and integration.
- Astra Microwave order
- Rs 2,205.2 crore from HAL for 122 AAAUs and 121 interface frames for the Uttam Radar programme.
- Data Patterns order
- Rs 585.8 crore for radar electronics from BEL.
- Programme delays
- QRSAM, Project-75I and Next Generation Corvettes were cited as delayed.
- Estimate source
- Revenue and financial forecasts cited are Elara Securities estimates, not company guidance.