For the Indian Air Force, approval was accorded for the procurement of helicopters, air defence systems, weapons and Mobile X-Band Doppler Weather Radar Systems to enhance air defence and war-fighting capabilities.
Antique Stock Broking said ordering momentum should regain traction with the P75I submarine programme, Quick Reaction Surface-to-Air Missile (QRSAM) systems and Next-Generation Corvette (NGC) programmes.
"In the near term, we expect the placement of several marquee defence orders, including the P75I submarine programme (estimated at Rs 90,000 crore), the QRSAM system (Rs 30,000 crore), and the Next-Generation Corvette (NGC) programme (Rs 33,000 crore). These orders are expected to be awarded to MDL, BEL, and GRSE, respectively. In addition, the execution of these programmes is expected to create meaningful opportunities for ancillary defence companies. BDL is likely to benefit from missile supplies (Rs 10,000-12,000 crore) for the QRSAM programme," Antique said.
BEL is also seen aiming to secure orders for Combat Management Systems (CMS) and radars. The award of these large contracts is expected to significantly boost revenue visibility over the medium term, Antique said.
Antique sees HAL and BEML as key potential beneficiaries. "We remain constructive on the defence sector, supported by the expanding pipeline of acquisition programmes, increasing domestic sourcing and the government's continued focus on strengthening indigenous defence capabilities. However, faster conversion of AoNs into contracts remains critical for translating the sizeable procurement pipeline into sustained revenue and order-book growth."
Antique's top four defence picks include HAL, Solar Industries India Ltd, BEL and Astra Microwave Products Ltd.
The domestic brokerage said India's defence sector is in a multi-year structural upcycle, driven by steady growth in budgeted capital expenditure over FY2026-30E, a rising number of Acceptance of Necessity (AoN) approvals and a push towards indigenisation. Antique maintained its 'Buy' ratings on HAL, BEL, Solar Industries, Astra Microwave and Krishna Defence and Allied Industries.
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