HAL, BEL, Bharat Dynamics and BEML in Focus as Defence Expansion Cycle Builds
Last Updated: 23rd September 2026 - 05:23 pm
India’s defence sector remains in focus as production and exports scale up, bringing companies such as Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics and BEML into the spotlight.
Production in defence segment is anticipated to rise to a record ₹1.8 trillion whereas exports increased to ₹380 billion in FY26. The targeted figure for 2026 is ₹3 trillion in production and ₹500 billion in exports.
Emkay Global has commenced coverage on HAL with 'Buy' recommendation and target price of ₹5,950, which signifies 23% upside potential from current levels. Emkay estimates LCA Tejas MK1A order execution to aid in the company’s performance and believes that its earnings are likely to grow by 13% CAGR during FY26-29E.
Shares of HAL were quoting 0.73% higher at ₹4,828 on BSE at 2pm, with market capitalization of ₹3.23 lakh crore.
BEL has been given a target price of ₹500, which signifies 26% upside potential. Factors such as execution record, R&D focus, and large programme pipeline have been attributed to the expectation of mid-teen growth in its earnings. BEL’s shares were quoting 0.16% higher at ₹397.95.
For Bharat Dynamics, Emkay set a target price of ₹1,350 with an ‘Add’ rating. The report also flagged rising competition and higher R&D spending as possible pressure points for margins in the near term. The stock was down 0.63% at ₹1,163.85, with a market capitalisation of ₹42,662.38 crore.
BEML received a ‘Buy’ rating with a target price of ₹2,600, indicating about 24% upside. The company has an order book of ₹217 billion, providing revenue visibility through FY29, alongside opportunities across MRVC AC EMUs, aluminium push-pull trainsets and six live metro tenders.
BEML shares were trading 0.52% higher at ₹2,103.30 on the BSE at 2:11 pm, with a market capitalization of ₹17,518.18 crore.
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