Goldman Sachs projects these defence stocks to benefit from Budget 2026 announcements

Defence stocks such as Solar Industries, Bharat Electronics, Bharat Dynamics, Data Patterns, PTC Industries, have been listed as potential beneficiaries of the Defence allocation highlighted as part of Budget 2026 by Goldman Sachs in the brokerages' latest note on Monday, February 2.

The note said that the defence spend in the Union Budget for the financial year 2027 came ahead of estimates.

Goldman Sachs said it believes Solar Industries, Bharat Electronics and Bharat Dynamics are well-placed to benefit from the spending focus on 'other equipment'.

It also see a potential trickle down benefit for Astra Microwave Productsand Data Patterns.

In case of aerospace, the analyst said the exemption of basics customs duty (BCD) on raw materials for the manufacture of parts or components of aircraft, including engines, is likely to benefit companies such as PTC Industries and

Azad Engineering.

Finance Minister Nirmala Sitharaman presented the Budget 2026 in Parliament on Sunday, February 1. India stepped up its defence spending

, as the finance minister announced an outlay of ₹7.85 lakh crore, up 15.2% from FY26's Budgeted allocation of ₹6.81 lakh crore.

Goldman Sachs said the overall defence Budget is up 7% at ₹7.85 lakh crore for FY27, compared to the revised estimates for FY26. The analyst had estimated a Budget allocation of ₹7.75 lakh crore.

The FY26 defence spend (revised estimates) increased 8% compared to the Budget estimates, Goldman Sachs said.

The FY27 capital procurement spend (Budget estimate) increased 18% to ₹2.19 lakh crore, compared to the FY26 revised estimates . Goldman Sachs had estimated the same to be ₹1.97 lakh crore.

Within capital procurement, the Budgeted estimate for FY27 for 'other equipment' comprising missiles, ammunition, radar electronics increased 62% to ₹82,200 crore.

Defence stocks sold off sharply Sunday, with the Nifty India Defence Index seeing a sharp reversal from its intraday highs to end lower. Led by Bharat Electronics, the constituents of the Nifty India Defence index lost over ₹60,000 crore in market capitalisation after the Budget announcements.

Also Read: Budget 2026: Here's what analysts said on FM's fiscal consolidation plans, growth projections