Stocks to buy for long term: India’s defence sector is entering a multi-year growth phase, supported by a sharp rise in government capital spending, accelerating indigenisation, and a robust order pipeline, believes domestic brokerage house Antique Stock Broking.
As per the brokerage, the Union Budget for FY26–27 has earmarked a record ₹7.84 lakh crore for defence, accounting for nearly 15% of total budgeted expenditure and marking a 15% year-on-year increase. Importantly, capital outlay has been raised by 21.8% over FY26 estimates to ₹2.19 lakh crore. Moreover, last week, the Defence Acquisition Council cleared capital acquisition proposals worth ₹3.60 lakh crore to enhance the combat readiness of the armed forces, further raising investor interest in the sector
With approvals worth ₹3.3 lakh crore already cleared by the Defence Acquisition Council in YTD FY26— higher than the ₹2.2 lakh crore approved in FY25—the brokerage believes defence PSUs and select private players are well positioned for sustained growth.
Antique Broking lists stocks to buy in the defence sector
Hindustan Aeronautics Limited (HAL): Antique Stock Broking remains constructive on HAL, citing its dominant position in India’s defence aerospace ecosystem and long-term visibility on aircraft manufacturing. The brokerage highlighted HAL’s opportunity to manufacture more than 300 aircraft over the next 10–15 years, including platforms such as Tejas Mk-1A, Tejas Mk-II and the Advanced Medium Combat Aircraft (AMCA). With rising indigenisation and large replacement cycles underway, Antique believes HAL is well placed to benefit from sustained defence capex. It has maintained a Buy rating on the stock with a target price of ₹6,346, underpinned by strong execution capabilities and a robust order pipeline.
Bharat Electronics Limited (BEL): Antique sees Bharat Electronics as a key beneficiary of rising allocations toward electronic warfare systems, radars and missile-related electronics. The brokerage pointed out that BEL stands to gain from large upcoming defence orders, including the QRSAM programme, which is estimated at around ₹300 billion. According to Antique, BEL’s diversified product portfolio, consistent execution and improving margins provide strong earnings visibility. It has reiterated a Buy rating on the stock with a target price of ₹532, valuing the company at 48 times its FY28 estimated earnings, supported by healthy order inflows and long-term defence modernisation plans.
Mazagon Dock Shipbuilders: Mazagon Dock Shipbuilders remains a preferred pick for Antique, given its unique capabilities in constructing complex warships and submarines. The brokerage highlighted that Mazagon Dock is the only Indian shipyard with experience in building submarines, placing it at the centre of future naval procurement. Antique expects potential order inflows worth ₹1.0–1.05 trillion from the P75(I) submarine programme and additional Scorpene-class submarines. With execution of large naval platforms extending over multiple years, the brokerage believes Mazagon Dock offers strong revenue visibility and long-term growth potential.
PTC Industries: Antique maintains a positive stance on PTC Industries, citing its strategic importance in titanium and super-alloy components used in aerospace and defence applications. The brokerage expects the company’s consolidated revenue to scale up meaningfully as its large-scale aerospace materials complex ramps up operations. PTC’s focus on high-value, mission-critical components positions it favourably amid India’s push for defence indigenisation. Antique has retained a Buy rating on the stock with a target price of ₹23,005, supported by improving operating leverage and rising demand from defence and aerospace customers.
Solar Industries: Solar Industries is viewed by Antique as a long-term structural play on India’s expanding defence manufacturing ecosystem. The brokerage highlighted the company’s growing presence in explosives, ammunition and advanced defence technologies. As of 9MFY26, Solar Industries had an estimated defence order book of ₹191 billion, providing strong revenue visibility. Antique believes the company’s expanding defence portfolio, combined with healthy return ratios and execution strength, positions it well to benefit from rising domestic procurement and sustained defence spending over the medium to long term.
Defence Sector Outlook
Antique said geopolitical tensions and modernisation needs have made a quantum jump in defence spending unavoidable. The brokerage highlighted that approvals have been granted for large-ticket platforms including submarines, missile systems, drones, radars and advanced artillery, creating strong visibility for order inflows in FY27–28.
Summing up the sector opportunity, Antique stated, “With project approvals worth INR 3.3 trn in YTDFY26, we believe defence PSUs have strong growth opportunities in the foreseeable timeframe.” The brokerage expects double-digit growth in defence capex to continue over the coming years, supported by faster ordering timelines and improving execution.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
