HAL, BDL, BEL, Zen Tech: Stock price targets for 4 defence stocks, Q2 results preview
MOFSL expects revenue growth of 15 per cent YoY for BEL, led by the healthy execution of the order book of Rs 74,900 crore. It said revenue for HAL may grow 13 per cent YoY.
- Oct 6, 2025,
- Updated Oct 6, 2025 12:24 PM IST
Defence stocks such as Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd (BDL), Bharat Electronics Ltd (BEL) and Zen Technologies Ltd are in focus ahead of the kick start of the earnings season.
During the quarter, HAL secured an Rs 63,000 crore contract for 97 additional LCA Mk-1A aircraft, while the Indian Army issued a tender to BEL for the QRSAM project valued at Rs 30,000 crore. During 2QFY26, BEL booked orders worth Rs 5200 crore orders.
In its Q2 preview note, MOFSL said the recently announced Technology Perspective and Capability Roadmap (TPCR) 2025 outlines the Indian Armed Forces’ future technology and capability requirements over the next 15 years spread across domains like land systems, aviation, maritime, space, cyber, artificial intelligence, robotics, electronic warfare, and unmanned systems.
Further, the revised Defense Procurement Manual (DPM) 2025 aims to streamline approvals by reducing bureaucratic hurdles, which will help the armed forces maintain operational readiness with quicker access to equipment, repairs and ammunitions, it said adding that the defence ministry is also encouraging private players’ participation in large projects and moving away from nomination-based tendering.
"During the quarter, L&T and BEL formed a strategic partnership to participate in the
AMCA program of the Indian Air Force. The ongoing emergency procurement program and the expected DAC meeting in the coming weeks will be keenly watched in the near term, and the budgetary allocation for defense will be looked out for in the medium term," it noted.
Here's what the brokerage said on four defence companies:-
BDL: MOFSL expects revenue for BDL to grow 30 per cent YoY, driven by the healthy execution of the opening order book. Key monitorables include emergency procurement orders for MPATGM, VSHORAD, ALWT, and other missile systems. The brokerage said margins for BDL may expand 190 basis points YoY, as execution scales up. The execution of orders, finalisation of tender for QRSAM from BEL to BDL should drive margin improvement going forward, it said.
The target for BDL is set at Rs 1,900.
BEL: MOFSL expects revenue growth of 15 per cent YoY for BEL, led by the healthy execution of the order book of Rs 74,900 crore. Key monitorables, it said, include update on orders for subsystems and 97 LCA MK1A aircraft, execution of orders for LRSAM and EW projects, incremental share of exports, and working capital cycle.
The domestic brokerage expects margins to contract 290 basis points YoY to 27.4 per cent on a high base.
"The status of EoI for AMCA, finalisation of emergency procurement-related orders, execution of the huge backlog, and further indigenisation of modules and subsystems will remain key areas of focus," MOFSL said, as it suggested a target of Rs 490 on the stock.
HAL: MOFSL said revenue for HAL may grow 13 per cent YoY, driven by a healthy execution of the opening order book. Key monitorables include the working capital cycle, and the status of Tejas Mk1a deliveries, MoU with GE and related orders for Su-30 avionics upgrade project.
MOFSL expects Ebitda margin to expand 10 bps YoY even on a high base, aided by increased indigenisation and easing of supply chain issues. The execution of a huge order backlog, any major provisions, incremental inflows, and margin will be the key focus areas, it said while suggesting a target of Rs 5,800 on the stock.
Zen Tech: MOFSL expects revenue for Zen tech to decline 43 per cent YoY, as decision delays on overall ordering weigh on execution performance. Key monitorables include order inflows for both training simulators and anti-drones in domestic and export markets, execution of equipment orders, and working capital cycle.
MOFSL expects Ebitda margin to expand 210bp YoY/70bp QoQ, in line with broader guidance of the company. Emergency procurement, progress of acquired companies and updates on utilisation of QIP proceeds will be in focus, it said.
The brokerage cut its target on the stock to Rs 1,550 to factor in lower other income in its estimates.
Defence stocks such as Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd (BDL), Bharat Electronics Ltd (BEL) and Zen Technologies Ltd are in focus ahead of the kick start of the earnings season.
During the quarter, HAL secured an Rs 63,000 crore contract for 97 additional LCA Mk-1A aircraft, while the Indian Army issued a tender to BEL for the QRSAM project valued at Rs 30,000 crore. During 2QFY26, BEL booked orders worth Rs 5200 crore orders.
In its Q2 preview note, MOFSL said the recently announced Technology Perspective and Capability Roadmap (TPCR) 2025 outlines the Indian Armed Forces’ future technology and capability requirements over the next 15 years spread across domains like land systems, aviation, maritime, space, cyber, artificial intelligence, robotics, electronic warfare, and unmanned systems.
Further, the revised Defense Procurement Manual (DPM) 2025 aims to streamline approvals by reducing bureaucratic hurdles, which will help the armed forces maintain operational readiness with quicker access to equipment, repairs and ammunitions, it said adding that the defence ministry is also encouraging private players’ participation in large projects and moving away from nomination-based tendering.
"During the quarter, L&T and BEL formed a strategic partnership to participate in the
AMCA program of the Indian Air Force. The ongoing emergency procurement program and the expected DAC meeting in the coming weeks will be keenly watched in the near term, and the budgetary allocation for defense will be looked out for in the medium term," it noted.
Here's what the brokerage said on four defence companies:-
BDL: MOFSL expects revenue for BDL to grow 30 per cent YoY, driven by the healthy execution of the opening order book. Key monitorables include emergency procurement orders for MPATGM, VSHORAD, ALWT, and other missile systems. The brokerage said margins for BDL may expand 190 basis points YoY, as execution scales up. The execution of orders, finalisation of tender for QRSAM from BEL to BDL should drive margin improvement going forward, it said.
The target for BDL is set at Rs 1,900.
BEL: MOFSL expects revenue growth of 15 per cent YoY for BEL, led by the healthy execution of the order book of Rs 74,900 crore. Key monitorables, it said, include update on orders for subsystems and 97 LCA MK1A aircraft, execution of orders for LRSAM and EW projects, incremental share of exports, and working capital cycle.
The domestic brokerage expects margins to contract 290 basis points YoY to 27.4 per cent on a high base.
"The status of EoI for AMCA, finalisation of emergency procurement-related orders, execution of the huge backlog, and further indigenisation of modules and subsystems will remain key areas of focus," MOFSL said, as it suggested a target of Rs 490 on the stock.
HAL: MOFSL said revenue for HAL may grow 13 per cent YoY, driven by a healthy execution of the opening order book. Key monitorables include the working capital cycle, and the status of Tejas Mk1a deliveries, MoU with GE and related orders for Su-30 avionics upgrade project.
MOFSL expects Ebitda margin to expand 10 bps YoY even on a high base, aided by increased indigenisation and easing of supply chain issues. The execution of a huge order backlog, any major provisions, incremental inflows, and margin will be the key focus areas, it said while suggesting a target of Rs 5,800 on the stock.
Zen Tech: MOFSL expects revenue for Zen tech to decline 43 per cent YoY, as decision delays on overall ordering weigh on execution performance. Key monitorables include order inflows for both training simulators and anti-drones in domestic and export markets, execution of equipment orders, and working capital cycle.
MOFSL expects Ebitda margin to expand 210bp YoY/70bp QoQ, in line with broader guidance of the company. Emergency procurement, progress of acquired companies and updates on utilisation of QIP proceeds will be in focus, it said.
The brokerage cut its target on the stock to Rs 1,550 to factor in lower other income in its estimates.