Capital goods stocks such as Apar Industries, Hitachi Energy India, Timken India, and Triveni Turbine have made a strong comeback in recent months as order inflows have picked up momentum, driven by healthy traction across the defense, power transmission & distribution (T&D), renewables, and buildings & factories (B&F) segments.
The railways segment, which had witnessed a slowdown in FY25, has started showing signs of recovery since April 2025. Order inflows were strong in Q4FY25, and Q1FY26 has begun on a decent note, bringing renewed optimism to the sector and resulting in sharp gains across most counters.
Twenty-three constituents from the BSE Capital Goods index have posted strong gains over the past three months, with Apar Industries emerging as the top performer, rallying 78.2%, followed by Hitachi Energy India, which gained 70.3%.
| Stock Name | Gain in last 3 months |
|---|---|
| Apar Industries | 78.2% |
| Hitachi Energy India | 70.3% |
| Bharat Dynamics | 54.2% |
| Bharat Electronics | 48.4% |
| Cochin Shipyard | 47.7% |
| Timken India | 45.9% |
| KEI Industries | 42.6% |
| Mazagon Dock Shipbuilders | 39.7% |
| Zen Technologies | 36.7% |
| Polycab India | 34.7% |
| Triveni Turbine | 31.7% |
| Elgi Equipments | 31.7% |
| Supreme Industries | 30.8% |
| Cummins India | 28.3% |
| SKF India | 28.3% |
| Kaynes Technology | 26.6% |
| Bharat Heavy Electricals | 24.2% |
| Suzlon Energy | 24.2% |
| Titagarh Rail Systems | 24.1% |
| HAL | 23.9% |
| CG Power and Industrials | 22.3% |
| Inox Wind | 22.2% |
| Honeywell Automation | 20.7% |
| Source: Trendlyne |
Meanwhile, Bharat Dynamics, Bharat Electronics, Timken India, and KEI Industries have risen 54.2%, 48.4%, 45.9%, and 42.6%, respectively. Defense shipbuilding stocks such as Cochin Shipyard and Mazagon Dock Shipbuilders have also delivered impressive returns, gaining 47.7% and 39%, respectively, during the same period.
Strong order wins for BHEL, KEC, and KPIL
During the June quarter (Q1FY26), Larsen & Toubro secured orders across the power transmission & distribution (T&D) segment, as well as in water, buildings, and factories, with announced inflows totaling ₹15,000 crore so far.
The Siemens consortium also bagged a significant order worth ₹4,100 crore from the National High-Speed Rail Corporation for the Mumbai-Ahmedabad bullet train project.
While Bharat Heavy Electricals won orders worth approximately ₹7,350 crore, KEC International secured around ₹6,850 crore, and Kalpataru Projects International acquired ₹7,150 crore worth of new contracts.
Meanwhile, the Defence Acquisition Council (DAC) has approved emergency procurement worth ₹40,000 crore for the Indian Armed Forces. The approvals include key systems such as surveillance drones, kamikaze drones, loitering munitions, and various types of missiles and ammunition.
In addition, strong capacity additions in the power sector, particularly in renewables, transmission & distribution, data centers, and electric vehicles (EVs) are expected to drive further order inflows in the coming years.
According to the latest projections, the power sector, a key end-user for capital goods, is poised to witness significant ₹25 lakh crore over the next five years”>capital expenditure of approximately ₹25 lakh crore over the next five years. This investment will target renewable and thermal power capacity additions, expansion of the transmission and distribution network, and enhancements in storage infrastructure.
Sector outlook remains strong backed by orders and policy support
According to the domestic brokerage firm, Motilal Oswal the capital goods sector is comfortably positioned, supported by a strong order book providing healthy revenue visibility, favorable commodity prices offering comfort to margins, a strong balance sheet that provides leeway for capex, and favorable government policies, such as plans for emergency defense procurement, a focus on renewables, and the Make in India initiative.
“We will wait to see a broad-based revival in domestic and private capex, along with sustained momentum in order inflows, which would drive a re-rating of the sector from current levels,” said the brokerage.
For Q1FY26, Motilal estimates its coverage companies to post 14% year-on-year (YoY) revenue growth, 14% YoY EBITDA growth, and 12% YoY profit after tax (PAT) growth. It reiterates a positive stance on L&T, Cummins India and Bharat Electronics in the large-cap space, and on Kirloskar Oil Engines and Kalpataru Projects International in the mid- and small-cap segments.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
