Defence stocks: MTAR Tech, Data Patterns, Ideaforge, BEL gain up to 7% as Budget 2026 gets Cabinet nod
MTAR Technologies Ltd jumped 7.36 per cent to hit a high of Rs 3,148.90, while Ideaforge Technology Ltd was trading 4.60 per cent higher at Rs 483.40. Data Patterns (India) Ltd climbed 4.5 per cent to Rs 2,791.15.
- Feb 1, 2026,
- Updated Feb 1, 2026 11:37 AM IST
Union Budget 2026: A total of 22 aerospace and defence stocks were trading higher in Sunday’s session after the Cabinet approved the Union Budget 2026-27 document. Market participants are pencilling in an 8-20 per cent increase in defence allocations in Budget 2026 over FY26’s Rs 1.8 lakh crore outlay.
MTAR Technologies Ltd jumped 7.36 per cent to hit a high of Rs 3,148.90, while Ideaforge Technology Ltd was trading 4.60 per cent higher at Rs 483.40. Data Patterns (India) Ltd climbed 4.5 per cent to Rs 2,791.15. Paras Defence and Space Technologies Ltd, DCX India and Bharat Electronics Ltd (BEL) gained 2-3 per cent.
Zen Technologies Ltd, Garden Reach Shipbuilders and Engineers Ltd (GRSE), Astra Microwave Products Ltd and Hindustan Aeronautics Ltd (HAL) advanced up to 2 per cent. In contrast, Bharat Dynamics Ltd slipped 1.61 per cent following its December quarter results.
In her Budget speech FM Nirmala Sitharaman said her government has decisively and consistently chosen action over ambivalence. "We have pursued far-reaching structural reforms, fiscal prudence and monetary stability, while maintaining a strong thrust on public investment," she said.
Among brokerages, Anand Rathi expects over 15 per cent rise in capital outlay, on the back of recent strong pipeline of DAC clearances and strong need for modernisation of defence equipment.
"If the ‘capital-heavy plus domestic-first’ posture holds, then awarding pipeline is expected to be across platforms, munitions and network-centric capabilities," it said.
Going into Budget session, Emkay Global said any increased focus on aerial warfare would be positive for Paras Defence and Space Technologies LtdAstra Microwave Products Ltd, Zen Technologies Ltd, Data Patterns (India) Ltd. Any announcement on Shipbuilding is seen positive for Cochin Shipyard, Mazagaon Dock, and Larsen and Toubro. Axis Securities said it liked BEL and MTAR Technologies as its top defence bets.
Choice Broking, which has BEL, BDL, and Data Patterns as its key stock picks, said geopolitical tensions, force modernisation, and the indigenisation policy may drive a 20 per cent YoY increase in defence spending for FY27. The brokerage sees spending diversification towards systems, sub-systems, and lifecycle components to reduce episodic revenue dependence.
Union Budget 2026: A total of 22 aerospace and defence stocks were trading higher in Sunday’s session after the Cabinet approved the Union Budget 2026-27 document. Market participants are pencilling in an 8-20 per cent increase in defence allocations in Budget 2026 over FY26’s Rs 1.8 lakh crore outlay.
MTAR Technologies Ltd jumped 7.36 per cent to hit a high of Rs 3,148.90, while Ideaforge Technology Ltd was trading 4.60 per cent higher at Rs 483.40. Data Patterns (India) Ltd climbed 4.5 per cent to Rs 2,791.15. Paras Defence and Space Technologies Ltd, DCX India and Bharat Electronics Ltd (BEL) gained 2-3 per cent.
Zen Technologies Ltd, Garden Reach Shipbuilders and Engineers Ltd (GRSE), Astra Microwave Products Ltd and Hindustan Aeronautics Ltd (HAL) advanced up to 2 per cent. In contrast, Bharat Dynamics Ltd slipped 1.61 per cent following its December quarter results.
In her Budget speech FM Nirmala Sitharaman said her government has decisively and consistently chosen action over ambivalence. "We have pursued far-reaching structural reforms, fiscal prudence and monetary stability, while maintaining a strong thrust on public investment," she said.
Among brokerages, Anand Rathi expects over 15 per cent rise in capital outlay, on the back of recent strong pipeline of DAC clearances and strong need for modernisation of defence equipment.
"If the ‘capital-heavy plus domestic-first’ posture holds, then awarding pipeline is expected to be across platforms, munitions and network-centric capabilities," it said.
Going into Budget session, Emkay Global said any increased focus on aerial warfare would be positive for Paras Defence and Space Technologies LtdAstra Microwave Products Ltd, Zen Technologies Ltd, Data Patterns (India) Ltd. Any announcement on Shipbuilding is seen positive for Cochin Shipyard, Mazagaon Dock, and Larsen and Toubro. Axis Securities said it liked BEL and MTAR Technologies as its top defence bets.
Choice Broking, which has BEL, BDL, and Data Patterns as its key stock picks, said geopolitical tensions, force modernisation, and the indigenisation policy may drive a 20 per cent YoY increase in defence spending for FY27. The brokerage sees spending diversification towards systems, sub-systems, and lifecycle components to reduce episodic revenue dependence.