Overview

• HAL’s order book jumped 95.4% to Rs1.84 lakh crore in fiscal 2025 with Rs1.02 lakh crore in manufacturing contracts and Rs17,500 crore in overhaul deals.
• Jefferies spotlights HAL, Siemens, L&T and KEI as top picks, projecting bull-case price targets of Rs7,500 for HAL (50% upside), Rs4,500 for Siemens (36%), Rs3,965 for L&T (9%) and Rs5,625 for KEI (59%).
• Defence order flows have surged 89% year-on-year, fueling EBITDA margin expansions of 831 bps at HAL and 385 bps at BEL this fiscal.
• Government indigenisation initiatives and a projected 14% CAGR in defence capital spending through FY2030 are underpinning domestic manufacturing growth.
• Infrastructure names benefit from a 2.5× increase in power sector capex to over Rs25 trillion in FY24-30 alongside stronger export pipelines for Siemens and L&T.