HAL vs Bharat Dynamics vs. Mazagon Dock Shipbuilders: Q1 results 2025 season is almost over, and Indian stock market investors are busy finding their value picks. Amid rising trade war fears and geopolitical tension, most experts are batting in favour of defence stocks with strong fundamentals. The Q1 earnings of defence companies would be an essential factor in stock investors’ decision to make any investment.
Experts say Hindustan Aeronautics Ltd (HAL) has delivered steady operational progress, while Bharat Dynamics Ltd reported softer-than-expected Q1 2025 results. They said Mazagon Dock Shipbuilders Limited’s Q1 FY26 results reflect near-term profitability pressures, with net profit down 35% YoY and EBITDA margins contracting sharply due to higher procurement and manpower costs.
HAL Q1 results 2025 review
Speaking on Q1 results 2025 of the leading defence PSUs, Putta Ravi Kumar, Analyst – Defence Sector at Choice Broking, said, “HAL has delivered steady operational progress, but the key bottleneck right now is GE engine supply for the Tejas programme. Even if GE fails to deliver on time, we don’t see this derailing the company’s financials, given its wide-ranging portfolio — from LCH Prachand and Su-30 upgrades to civilian aircraft and space programmes. The pace of revenue recognition from its flagship fighter aircraft order will be partially contingent on engine deliveries. The order book at ~6.1x FY25 revenues is powerful, and the recent correction does make valuations attractive. However, much of HAL’s near-term triggers hinge on execution timelines for large, ongoing projects.”
Bharat Dynamics Q1 results review
“Bharat Dynamics Ltd, on the other hand, despite a softer-than-expected Q1, we continue to believe that the company is well-placed to deliver a strong set of numbers over the next 2 years, supported by multiple programmes moving into production stage — including QRSAM, MRSAM, Akash NG, ATGMs, Torpedoes, and several other key platforms. In our view, BDL’s strategic monopoly as India’s only missile system integrator and its robust order book at ~6.8x FY25 revenue provide exceptional revenue visibility. We expect ~ ₹200 Bn in fresh orders over the next 2 years, in addition to replenishment demand arising from emergency procurement post Operation Sindoor,” the Choice Broking expert said.
Mazagon Dock Q1 results review
Speaking on Mazagon Dock Shipbuilders’ Q1 earnings, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “Mazagon Dock Shipbuilders Limited’s Q1 FY26 results reflect near-term profitability pressures, with net profit down 35% YoY and EBITDA margins contracting sharply due to higher procurement and human resources costs. However, the company’s long-term investment case remains strong, anchored by its strategic role in India’s naval modernisation and a robust financial track record. Between FY21–24, MDL delivered exceptional growth with ~33% CAGR in revenue and ~47% CAGR in net profit, supported by industry-leading return ratios (ROE ~27%, ROCE ~33%) and a debt-free balance sheet, enabling self-funded capacity expansion. Key strategic initiatives such as the upcoming Nhava dry dock facility, which will double shipbuilding capacity, and the proposed majority stake in Colombo Dockyard to expand into export markets highlight management’s intent to scale operations beyond domestic contracts. The strong defence order pipeline, particularly in submarines, destroyers, and frigates, ensures multi-year revenue visibility.”
“While FY26 may see margin volatility from execution cycles and input costs, MDL’s operational leverage, expansion into higher-value projects, and export diversification should drive gradual profitability recovery. Given its strategic importance, technological capabilities, and capacity growth, MDL is well-positioned to capture long-term value from India’s growing defence spend and global naval procurement opportunities,” Seema added.
HAL vs Bharat Dynamics vs Mazagon Dock Shipbuilders
On which defence PSU stock to buy, Putta Ravi Kumar of Choice Broking said, “From the fundamental perspective, HAL and BDL are strong defence plays and both are quality buys, but HAL stands out as a steady, long-term compounder backed by a diversified portfolio and a robust order book. BDL also offers good potential and can be a tactical addition for the near term, but for investors looking for consistent growth and stability, HAL remains the stronger core holding.”
On what technical chart suggests about these three defence PSU stocks, Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, said, “Among HAL, BDL and MAZDOCK, I shall pick HAL among the three stocks with technical parameters indicating a favourable approach and can expect much higher returns. The stock has corrected from the high level of ₹5165 to show signs of taking support near the important 200-period SMA at ₹4315 zone, and with an indication of a revival, there is improvement in the bias. The RSI has arrived near the oversold zone and indicated a positive trend reversal, signalling a buy, which is also accompanied by a positive divergence indication on the daily chart. The stock, once breached above the 50-DEMA zone at the ₹4670 level, would further strengthen the trend, anticipating a further rise in the coming days. With support maintained near the ₹4300 level, one can expect positional targets of ₹4940, ₹5170 and ₹5700 levels in the coming days.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
