INSUBCONTINENT EXCLUSIVE:
Domestic brokerage firm ICICI Securities, in a recent report, projects a strong growth trajectory for Indian defence sector companies in
FY26, stating that most of the companies under its coverage have guided for >15% revenue growth, driven by robust order inflow after
Operation Sindoor.Additionally, the report highlighted select names such as Bharat Dynamic Ltd (BDL), Solar Industries, and Azad
digest.ICICI Securities has also named its top stock picks in the sector, listing Solar Industries, Astra Microwave and Azad Engineering as
its top picks in the private space
Among defence public sector undertakings (DPSUs), it prefers Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL) and Midhani.Here
are the key highlights of the report from ICICI Securities:Strong order visibility across the board:As per the brokerage, order inflows
post Operation Sindoor.
Live EventsAccording to the report, the Indian government has approved Rs 400 billion for emergency procurement (EP)
and DAC has approved AoN (Acceptance of Necessity) for 10 proposals worth Rs 1,050 billion.ICICI Securities noted that specific companies
order),HAL is expecting OI of >Rs 1 trillion, which includes projects like Su-30 upgrade, Tejas Mk-2, and RoH orders,BDL is guiding for OI
talent hunt came before Sebi's Rs 36,500 crore manipulation bombshellKey developments for June 2025The report also compiled several critical
components.BEL received multiple orders, including one worth Rs 5.28 billion for radars and communication equipment, and another of Rs 5.85
billion for fire control systems and missiles.GRSE was declared L-1 in a next-gen corvette project and also signed a contract for two
coastal research vessels.Solar Industries received a Nagastra-1 order worth Rs 1.58 billion.Kalyani Strategic Systems emerged as the lowest
bidder for an Rs 20 billion contract to supply 4.5 million rounds of 5.56x45 mm carbines.IdeaForge received an Rs 1.37 billion mini-UAV
to manufacture aircraft engine components.Strategic collaborations and investmentsSeveral defence and aerospace players entered strategic
collaborations during the month:Mahindra Aerostructures signed a USD 300 million contract with Spain's Aernnova Aerospace to manufacture
components for Airbus and Embraer.Bharat Forge partnered with Turgis & Gaillard of France to offer the AAROK UAV to Indian forces.Max
Aerospace signed an MoU with the Maharashtra Government to set up a helicopter manufacturing unit in Nagpur with an investment of Rs 80
billion.Dassault Aviation joined hands with Tata Advanced Systems to manufacture Rafale fuselages for India and export markets.Procurement
and capability boostsThe Indian Army signed 13 contracts worth Rs 19.81 billion under emergency procurement and issued RFIs for 4,000
advanced anti-tank mines and 155mm precision-guided munitions
Additionally, the DRDO licensed ToT to Bharat Forge for its 155mm mounted gun system.Emerging companies also made notable progress,
including:Zen Technologies, which acquired TISA Aerospace Pvt
Ltd and secured a patent in laser-based combat training.QNu Labs, which received a Rs 250 million grant for quantum positioning
systems.Space Pixel, which will supply hyperspectral satellites to the Indian Air Force.(Disclaimer: Recommendations, suggestions, views and
opinions given by the experts are their own
These do not represent the views of TheIndianSubcontinent)
