On August 19, 2025, shares of major defence companies Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Bharat Dynamics fell during intraday trade after a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky. HAL and BEL shares dropped over 1%, while Bharat Dynamics slipped more than 3%.
Defence stocks have been in focus for months, boosted by Operation Sindoor and the India-Pakistan conflict, which led to a strong inflow of orders. In the past six months, these stocks have surged 33–50%. However, in the last 1.5 months, shares cooled off due to concerns over execution and easing geopolitical tensions.
Despite the recent dip, Q1 FY26 results were strong. HAL and BEL both gave year-on-year margin expansions of 831 bps and 385 bps, respectively. Both companies guided that margins would remain steady or improve, supported by operating leverage.
Read More: Defence Sector Q1 FY26 Results Snapshot: Mazagon Dock, BEL, Paras Defence and More.
While short-term volatility has caused defence stocks to dip, the long-term picture remains highly positive. With strong earnings, a robust order pipeline, and India’s push for self-reliance in defence, companies like HAL, BEL, and Bharat Dynamics are likely to maintain strong growth momentum.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 19, 2025, 2:17 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates