Defence Stocks To Buy: Bharat Electronics, HAL, Mazagon Dock Among Nirmal Bang's Bet — Check Full List

In Q2 top performers included Data Patterns, which posted a staggering 238% YoY revenue growth, and Bharat Dynamics, which beat estimates with 111% YoY growth, supported by a swelling order book projected to hit Rs 360 billion by FY26.Bharat Electronics also impressed with 26% revenue growth, driven by execution of key defence programs like LRSAM and Akash Army systems..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Nirmal Bang has delivered an upbeat review of the defence sector following Q2 FY26 results, highlighting robust execution and strong order inflows across major players. Revenue/Ebitda/PAT for the defence companies under brokerage's coverage saw a growth of 19%/15%/19% as compared with estimated growth of 15%/15%/4%. The outperformance was driven by healthy execution. Ebitda margin came in at 24.5% as compared to 25.2% mainly due to the provisions by HAL. .Top performers included Data Patterns, which posted a staggering 238% YoY revenue growth, and Bharat Dynamics, which beat estimates with 111% YoY growth, supported by a swelling order book projected to hit Rs 360 billion by FY26. Bharat Electronics also impressed with 26% revenue growth, driven by execution of key defence programs like LRSAM and Akash Army systems..Nirmal Bang remains bullish on the sector, citing strong government spending, localization under ‘Make in India,’ and rising export potential as key drivers. .Risks/Challenges Working capital pressures: Many private firms in defence historically face challenges in receivables, payment cycles, inventory buildup etc., which could impact cash flow and PAT. Execution delays, supply chain bottlenecks, regulatory/clearance delays: Especially true for complex platforms (ships, aircraft, missiles, electronics), which could push delivery schedules, thereby delaying revenue recognition. Margin pressure for commoditized/sub-component contracts: As procurement shifts from sub-assembly to system-level manufacturing, margins may fluctuate depending on mix, competition, and negotiation terms. Geopolitical/macro-economic risks: Raw material inflation, currency volatility, or global supply disruption may impact costs and profitability..Click on the attachment to read the full report:.JSW Infra Poised For 33% Gain; Motilal Oswal Maintains 'Buy' On Strong Expansion Plans.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Defence Stocks To Buy: Bharat Electronics, HAL, Mazagon Dock Among Nirmal Bang's Bet — Check Full List

Nirmal Bang remains bullish on the sector, citing strong government spending, localization under ‘Make in India,’ and rising export potential as key drivers.

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