How Did Bharat Electronics, BHEL and 4 Other Defence Stocks Perform in Q3?

SYNOPSIS: Union Budget 2026-27 allocated a record Rs. 7.85 lakh crore to defence, boosting sector sentiment. Leading defence players reported varied Q3 FY26 performances, supported by strong order books.

During the Union Budget 2026-27, the Ministry of Defence has received the highest-ever allocation of Rs. 7.85 lakh crore, an increase of 15.19 percent over the Budgetary Estimates (BE) of FY26, accounting for 14.67 percent of the Budget, which is the highest among the Ministries. India’s defence budget rose from Rs. 2.53 lakh crore in 2013-14 to Rs. 7.85 lakh crore in 2026-27, an increase of around Rs. 5.32 lakh crore, representing nearly a three-fold rise. Listed below are some notable defence-related stocks that have reported their financial results for the third quarter of FY26:

Bharat Electronics Limited

With a market cap of Rs. 3.26 lakh crores, the stock closed in the green at Rs. 446.9 on Tuesday, up by around 2 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 7,154 crores, reflecting a sequential growth of more than 23 percent QoQ compared to Rs. 5,792 crores in Q2 FY26, and a year-on-year increase of around 24 percent from Rs. 5,771 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 1,580 crores, indicating a rise of about 23 percent QoQ from Rs. 1,287 crores in Q2 FY26, as well as an increase on a year-on-year basis by more than 20 percent from Rs. 1,312 crores reported in Q3 FY25.

Bharat Electronics Limited is engaged in the business of manufacturing and supplying electronic equipment and systems to the defence sector, with a limited presence in the civilian market. As of 28th January 2026, the company’s order book stood at Rs. 73,450 crores.

Hindustan Aeronautics Limited

With a market cap of Rs. 2.84 lakh crores, the stock closed in the green at Rs. 4,247.4 on Tuesday, up by around 1percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 7,699 crores, reflecting a sequential growth of more than 16 percent QoQ compared to Rs. 6,629 crores in Q2 FY26, and a year-on-year increase of around 11 percent from Rs. 6,957 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 1,867 crores, indicating a rise of about 12 percent QoQ from Rs. 1,669 crores in Q2 FY26, and an increase on a year-on-year basis by nearly 30 percent from Rs. 1,440 crores reported in Q3 FY25.

As of May 2025, the company reported an order book of Rs. 1,89,300 crores, compared to Rs. 94,127 crores as of April 2024. Hindustan Aeronautics Limited (HAL) is engaged in the business of design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products, including aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.

The company’s operations are organised into five complexes, namely the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex and Design Complex, which together include 21 production divisions and 11 research and design centres (R&D Centres) and 8 support offices located across India. 

Bharat Heavy Electricals Limited

With a market cap of Rs. 91,508.6 crores, the stock closed in the green at Rs. 262.8 on Tuesday, up by 0.11 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 8,473 crores, reflecting a sequential growth of about 13 percent QoQ compared to Rs. 7,512 crores in Q2 FY26, and a year-on-year increase of around 16 percent from Rs. 7,277 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 390 crores, indicating a marginal rise of about 4 percent QoQ from Rs. 375 crores in Q2 FY26, and an impressive increase on a year-on-year basis by nearly 189 percent from Rs. 135 crores reported in Q3 FY25.

The company received orders worth nearly Rs. 10,900 crore in Q3 FY26, taking the total order book to Rs. 2,22,800 crore. The Power segment forms 80 percent of the total order book, and the remaining 20 percent consists of Industry, including exports.

Bharat Heavy Electricals Limited (BHEL) is an integrated power plant equipment manufacturer and is engaged in design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz, power, transmission, industry, transportation, renewable energy, water, oil & gas and defence & aerospace.

Bharat Dynamics Limited

With a market cap of Rs. 46,262 crores, the stock closed in the green at Rs. 1,262.05 on Tuesday, up by around 1 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 567 crores, reflecting a sequential decline of around 51 percent QoQ compared to Rs. 1,147 crores in Q2 FY26, and a year-on-year decrease of around 32 percent from Rs. 832 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 73 crores, indicating a fall of about 66 percent QoQ from Rs. 216 crores in Q2 FY26, as well as a decline on a year-on-year basis by more than 50 percent from Rs. 147 crores reported in Q3 FY25.

Bharat Dynamics Limited (BDL), a Government of India Enterprise under the Ministry of Defence, is engaged in the business of manufacturing missiles and allied defence equipment. The company provides the majority of its goods and services to the Indian Armed Forces and the Government of India.

Data Patterns (India) Limited

With a market cap of Rs. 15,752.7 crores, the stock closed in the red at Rs. 2,813.8 on Tuesday, down by around 0.4 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 173 crores, reflecting a sequential decline of about 44 percent QoQ compared to Rs. 307 crores in Q2 FY26, but a year-on-year increase of around 48 percent from Rs. 117 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 58 crores, indicating a rise of over 18 percent QoQ from Rs. 49 crores in Q2 FY26, and an increase on a year-on-year basis by nearly 29 percent from Rs. 45 crores reported in Q3 FY25.

Data Patterns (India) Limited is primarily engaged in the business of design, development, manufacture and sale of electronic products for defence and aerospace requirements. As of December 2025, the company reported an order book of Rs. 743.4 crores.

Looking forward, the company remain committed to maintaining a revenue growth rate of 20-25 percent and EBITDA margins at around 35-40 percent in FY26, with a strong order book in the pipeline at Rs 2000-3000 crores over the next 18-24 months.

Solar Industries India Limited

With a market cap of Rs. 1.19 lakh crores, the stock closed in the green at Rs. 1,3247.2 on Tuesday, up by around 1 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 2,548 crores, reflecting a sequential growth of more than 22 percent QoQ compared to Rs. 2,082 crores in Q2 FY26, and a year-on-year increase of around 29 percent from Rs. 1,973 crores recorded in Q3 FY25.

Meanwhile, net profit stood at Rs. 467 crores, indicating a rise of about 29 percent QoQ from Rs. 361 crores in Q2 FY26, as well as an increase on a year-on-year basis by nearly 38 percent from Rs. 338 crores reported in Q3 FY25.

Solar Industries Limited is engaged in the business of manufacturing a complete range of industrial explosives, explosive initiating devices and high-energy materials for defence applications. As of December 2025, the company has reported an order book exceeding Rs. 21,200 crores.

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