Defence Capex Super-Cycle? Brokerages See DAC’s Mega Approval Benefit HAL, BEL, Mazagon Dock And These Stocks

In the wake of the India's Defence Acquisition Council approving a mega Rs 79,000 spending outlay on Monday, brokerages such as Goldman Sachs, Motilal Oswal and Antique have highlighted a sharp surge in defence capital authorisations—now touching Rs 3.3 lakh crore for FY26 and outpacing previous years.

Brokerages expect strong order flows and structural growth for defence PSUs and select private players and have picked key stocks that are poised to benefit.

In its latest note, Goldman Sachs has highlighted that DAC's defence spends for FY26 so far stands at Rs 3.3 lakh crore, which has already surpassed FY25's tally of Rs 2.3 lakh crore.

But most importantly, the brokerage has picked a key set of winners from the most recent DAC approval.

This is broadly in line with what NDTV Profit reported soon after the initial announcement on Monday, listing out stocks that are involved in the manufacturing and production of the dozen items listed in the DAC notification.

Goldman Sachs expects the benefits to trickle down to more data-oriented and tech-based defence companies such as Astra Microwave and Data Patterns.

Motilal Oswal has also issued an update on Indian Defence space after the DAC approval, stating that the procurement deal is likely to benefit both leading defence PSUs and select private player.

The brokerage firm is particularly bullish on counters like BEL, Hindustan Aeronautics and Bharat Dynamics. However, the firm remains neutral on Zen Tech, despite its expertise on drone technologies.

Motilal Oswal added that emergency procurement announcements over the next 2-3 weeks will be a key monitorable going forward.

The firm also believes conversion of these Acceptance of Necessities into firm orders will be equally critical.

Even Antique Broking has put out a note on Indian Defence, maintaining bullish calls on the likes of Mazagon Dock, HAL, BEL, Bharat Dynamics, Zen Tech, Solar Industries and PTC Industries.