HAL, BEL & Data Patterns: 3 Defence Stocks Riding India's ₹50,000 Cr Export Ambition

By Shan | Jun 26, 2025

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Indias Defence Sector Is No Longer Playing Catch-Up

India isnt just buying more weapons its building them. With defence exports jumping from 1,070 crore in FY17 to 23,600 crore in FY25, and an ambitious 50,000 crore target set for FY30, the message is clear: India wants to become a global defence supplier, not just a buyer.

For investors, this isnt just policy talk its a serious opportunity. And according to Jefferies, three stocks stand to benefit the most from this structural shift: HAL, BEL, and Data Patterns.



 Why Jefferies Is Bullish on Defence Stocks in 2025

Indias Defence Spend Is Hitting New Highs

These numbers arent just budget boosts they signal consistent demand, export push, and long-term opportunities for key defence manufacturers.

India's Defence Export Push: Numbers That Matter

Fiscal Year

Defence Exports ( crore)

FY17

1,070

FY22

13,000

FY25

23,600

FY30 Target

50,000

India has already hit 10% of the FY26 export target in just the first month this kind of growth isnt speculative; its material.

1. Hindustan Aeronautics Limited (HAL): Riding the Export Wave

Why It Matters:

Jefferies View:

Investor Takeaway:

HAL isnt just a PSU stock anymore its a frontline exporter. With NATO countries increasing defence budgets and India targeting friendly nations for exports, HAL is well-placed to capture new global markets.


2. Bharat Electronics Limited (BEL): The Digital Backbone of Defence

Why It Matters:

Jefferies View:

Investor Takeaway:

BEL is Indias go-to electronics defence supplier. While it may not grow at startup speeds, it offers stability + moderate upside, especially as India exports radar and missile technologies like Akashtek.

3. Data Patterns: Indias Quiet Defence Tech Champion

 Why It Matters:

Jefferies View:

Investor Takeaway:

If HAL is the muscle and BEL the nervous system, Data Patterns is the brain. Its a high-risk, high-reward stock one that benefits from Indias ambition to lead, not follow, in defence innovation.

Global Defence Trends Are Playing in Indias Favour

Whats Changing Globally:

This is where India and its listed defence companies step in.

Public + Private = India's Defence Growth Engine

Indias defence boom isnt just a PSU story anymore. Private players like MTAR, Paras Defence, and Sushen are becoming essential links in the supply chain.

Key Benefits of Public-Private Synergy:

Risks & What Could Change the Outlook

Risk Factor

Impact

Geopolitical cooling

Slower export demand

Bureaucratic delays

Could impact HAL and BELs order execution

Global competition

May put pressure on Data Patterns' pricing

But heres the thing Indias defence policy has bipartisan support. This momentum is likely to continue, regardless of short-term global fluctuations.

Final Thoughts: Defence Isnt Just a ThemeIts a Long-Term Opportunity

India is no longer just buying defence tech its exporting it. And with a 50,000 crore ambition, defence isnt just a national priority its a market opportunity.

For investors, HAL, BEL, and Data Patterns are three different plays:

If youre building a long-term portfolio with exposure to strategic sectors, defence deserves serious attention.

Read also: Dalal Street Outlook: 5 Key Market Triggers to Watch This Week


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