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. To know more about the Defence stocks, read on.
Surge in Defence Capital Authorisations
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 Indian stock market experts have been reporting 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’ Top Picks in Defence
Goldman Sachs expects the benefits to trickle down to more data-oriented and tech-based defence companies such as Astra Microwave and Data Patterns.
The brokerage firm has also picked Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) as key beneficiaries of the DAC approval.
Motilal Oswal’s Update on Indian Defence Space
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 players.
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.
Antique Broking’s Note on Indian Defence
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.
Key Takeaways for Investors
The DAC approval is expected to trigger a sharp surge in defence capital authorisations, benefiting both defence PSUs and select private players. Investors can consider Defence stocks to buy such as HAL, BEL, Mazagon Dock and others that are poised to benefit from the increased defence spending.
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