Solar Industries, BEL, Data Patterns, PTC Industries: How Budget 2026 could affect these defence stocks
The brokerage highlighted that the defence spending outlined for FY27 exceeded its expectations.
- Feb 2, 2026,
- Updated Feb 2, 2026 12:08 PM IST
Defence stocks such as Solar Industries, Bharat Electronics, Bharat Dynamics, Data Patterns and PTC Industries could emerge as key beneficiaries of the higher defence allocation announced in the Union Budget, according to a recent note by Goldman Sachs.
According to the brokerage's note, companies such as Solar Industries, Bharat Electronics and Bharat Dynamics are well positioned to benefit from the government’s spending focus on "other equipment".
Goldman Sachs also sees a potential trickle-down benefit for Astra Microwave Products and Data Patterns.
In the aerospace segment, the brokerage noted that the exemption of basic customs duty on raw materials used in the manufacture of aircraft parts and components, including engines, is likely to support companies such as PTC Industries and Azad Engineering.
The brokerage highlighted that the defence spending outlined for FY27 exceeded its expectations. Goldman Sachs said the total defence Budget for FY27 stands at Rs 7.85 lakh crore, reflecting a 7% rise over the revised estimates for FY26. This compares with the firm’s earlier estimate of Rs 7.75 lakh crore.
The Ministry of Defence (MoD) described it as an "unprecedented allocation" in the post-Operation Sindoor period.
"In the Union Budget post Operation Sindoor, Defence Services have received an unprecedented allocation amounting to Rs 7.85 lakh crore for the Financial Year (FY) 2026-27," the ministry said. "This allocation stands at 2% of the estimated GDP for the next Financial Year and shows a significant increase of 15.19% over the Budgetary Estimates (BE) of FY 2025-26. Total Defence budget is 14.67% of the Central Government expenditure and is the highest among the Ministries."
Overall, Goldman Sachs believes the higher-than-expected defence allocation in the FY27 Budget could provide a meaningful boost to select defence and aerospace manufacturers.
Defence stocks such as Solar Industries, Bharat Electronics, Bharat Dynamics, Data Patterns and PTC Industries could emerge as key beneficiaries of the higher defence allocation announced in the Union Budget, according to a recent note by Goldman Sachs.
According to the brokerage's note, companies such as Solar Industries, Bharat Electronics and Bharat Dynamics are well positioned to benefit from the government’s spending focus on "other equipment".
Goldman Sachs also sees a potential trickle-down benefit for Astra Microwave Products and Data Patterns.
In the aerospace segment, the brokerage noted that the exemption of basic customs duty on raw materials used in the manufacture of aircraft parts and components, including engines, is likely to support companies such as PTC Industries and Azad Engineering.
The brokerage highlighted that the defence spending outlined for FY27 exceeded its expectations. Goldman Sachs said the total defence Budget for FY27 stands at Rs 7.85 lakh crore, reflecting a 7% rise over the revised estimates for FY26. This compares with the firm’s earlier estimate of Rs 7.75 lakh crore.
The Ministry of Defence (MoD) described it as an "unprecedented allocation" in the post-Operation Sindoor period.
"In the Union Budget post Operation Sindoor, Defence Services have received an unprecedented allocation amounting to Rs 7.85 lakh crore for the Financial Year (FY) 2026-27," the ministry said. "This allocation stands at 2% of the estimated GDP for the next Financial Year and shows a significant increase of 15.19% over the Budgetary Estimates (BE) of FY 2025-26. Total Defence budget is 14.67% of the Central Government expenditure and is the highest among the Ministries."
Overall, Goldman Sachs believes the higher-than-expected defence allocation in the FY27 Budget could provide a meaningful boost to select defence and aerospace manufacturers.