Bharat Electronics is projected to lift Q2 revenue 16% YoY, with margins tightening to 27.7% amid a less favourable product mix—an adjustment that could weigh on profitability.
Hindustan Aeronautics Ltd. is slated for a 14% YoY revenue uptick, its gross margin nudging up by 100 basis points to 24.5% as Light Combat Aircraft Mk1 and other deliveries take the spotlight.
Bharat Dynamics Ltd. faces a 19% YoY revenue dip, a decline attributed to a high base, though its sequential performance may improve as Akash‑NG and Quick Reaction Surface‑to‑Air Missile programmes gain traction.
Motilal Oswal highlights that the defence sector has already secured ₹1.6 lakh crore in Defence Acquisition Council approvals for FY2027, signalling robust order inflows that should translate into deliveries when execution improves.
While BEL is expected to lead the pack, followed by HAL’s improving performance, BDL may remain weaker due to the high base effect—an observation that could guide sector‑wide allocation decisions.
Traders are anticipating a 1–2% rally in defence shares as the sector moves from order‑book build‑up toward actual deliveries; earnings call dates for the three companies fall in the next 60 days, offering further clarity on execution momentum.