Choice Institutional Equities has turned upbeat on India’s defence sector in its Q2 FY26 preview; the brokerage said that it remains structurally positive on the country's defence ecosystem.

The brokerage said factors like indigenisation, faster procurement, and export tailwinds are lifting visibility for domestic suppliers.

Choice pointed to policy and order flows as the key growth engines. It highlighted that exports have surpassed Rs 23,622 crore in FY25, with the government targeting Rs 50,000 crore by 2029. Major domestic programmes, including the Cabinet's approval of a Rs 62,370 crore contract for 97 LCA Mk-1A aircraft, are underpinning multi-year revenue streams for large-cap companies and their supply chains, it added. Advertisement

Choice identified Bharat Electronics (BEL),

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