Defence sector Q1 results preview: Muted earnings likely on execution delays; BEL, Bharat Dynamics, GRSE among top picks

Indian defence companies are expected to report subdued Q1FY27 earnings due to back-ended revenue recognition and execution challenges, despite strong policy support including a FY27 Defence Budget of about 7.85 lakh crore and capital outlay of around 2.19 lakh crore. Analysts at Choice Institutional Equities view Q1FY27 as a transitional quarter, with major programme awards like QRSAM, P-75(I) submarines, and Next-Generation Corvette likely to support medium-term order book visibility. BEL, Bharat Dynamics and Garden Reach Shipbuilders are top picks, while HAL is estimated to post 10 percent revenue growth to 5,301 crore and BEL around 8 percent revenue growth to 4,795 crore.