Defence to real estate: These 12 stocks are creating wealth in FY26

Published in Stocks and Investing on Saturday, August 2nd 2025 at 23:01 GMT by Business Today
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The broader indices, BSE Midcap and BSE Smallcap, gained 12% and 16%, respectively, during the same period

Defence to Real Estate: These 12 Stocks Are Creating Wealth in FY26

In the dynamic landscape of the Indian stock market, Fiscal Year 2026 (FY26) is shaping up to be a pivotal period for wealth creation, driven by robust economic growth, policy reforms, and sector-specific tailwinds. As investors navigate through uncertainties like global geopolitical tensions and domestic inflationary pressures, certain stocks across diverse sectors—from defence to real estate—are emerging as standout performers. These 12 stocks, spanning industries such as defence, infrastructure, technology, pharmaceuticals, banking, automobiles, consumer goods, energy, telecommunications, healthcare, e-commerce, and real estate, have demonstrated remarkable resilience and growth potential. Their performance is underpinned by strong fundamentals, innovative strategies, and favorable market conditions. This analysis delves into each of these wealth creators, highlighting their key drivers, recent achievements, and future outlook for FY26.

Starting with the defence sector, which has been buoyed by India's push for self-reliance under the Atmanirbhar Bharat initiative and increased defence spending. Hindustan Aeronautics Limited (HAL) leads the pack as a prime beneficiary. As the country's premier aerospace and defence company, HAL has secured massive orders for fighter jets, helicopters, and aircraft components. In FY26, the company is projected to see a revenue surge of over 20% year-on-year, fueled by exports to friendly nations and domestic contracts worth billions. Its stock has already appreciated significantly, rewarding long-term investors with compounded annual growth rates exceeding 30% in recent years. HAL's focus on R&D, including collaborations for advanced drone technology and engine manufacturing, positions it for sustained gains amid rising global defence budgets.

Closely following is Bharat Electronics Limited (BEL), another defence heavyweight specializing in radar systems, electronic warfare, and communication equipment. BEL's order book has swelled to record levels, thanks to government contracts for border security and naval upgrades. In FY26, analysts anticipate a 25% jump in earnings per share, driven by margin expansions from efficient production scales. The company's diversification into non-defence segments like smart cities and renewable energy electronics adds a layer of stability, making it a defensive play in volatile markets. Investors are particularly excited about BEL's role in India's space ambitions, with tie-ups for satellite components that could unlock new revenue streams.

Transitioning to infrastructure, Larsen & Toubro (L&T) stands out as a multifaceted giant. With its fingers in engineering, construction, and heavy machinery, L&T is capitalizing on the government's infrastructure push through schemes like Bharatmala and Sagarmala. FY26 projections include a robust order inflow from metro projects, highways, and power plants, potentially boosting revenues by 18-22%. The company's foray into green energy, including solar and hydrogen projects, aligns with India's net-zero goals, enhancing its appeal to ESG-focused investors. L&T's stock has been a consistent wealth creator, with dividend yields that provide a cushion during market downturns.

In the technology realm, Tata Consultancy Services (TCS) continues to dominate as India's largest IT services exporter. Amid the global digital transformation wave, TCS is leveraging AI, cloud computing, and cybersecurity solutions to drive growth. FY26 is expected to witness a rebound in IT spending post any economic slowdowns, with TCS forecasting double-digit revenue growth. Its strong client base in banking and retail sectors, coupled with strategic acquisitions in emerging tech, ensures steady cash flows. The stock's valuation remains attractive, offering a blend of growth and stability for wealth accumulation.

Pharmaceuticals offer another avenue for wealth creation, with Sun Pharmaceutical Industries shining brightly. As a leader in generic drugs and specialty medicines, Sun Pharma is expanding its footprint in the US and emerging markets. FY26 could see earnings bolstered by new drug launches and patent expiries favoring generics. The company's R&D pipeline, focusing on dermatology and oncology, promises high-margin products. Despite regulatory hurdles, Sun Pharma's resilient supply chain and cost efficiencies have propelled its stock to new heights, making it a favorite among healthcare investors.

Banking sector stalwart HDFC Bank is redefining wealth through its merger synergies and digital prowess. Post its integration with HDFC Ltd., the bank is poised for accelerated loan growth in retail and MSME segments. FY26 estimates point to a net interest margin expansion, driven by rising interest rates and improved asset quality. HDFC Bank's focus on fintech innovations, like AI-driven lending platforms, positions it to capture the burgeoning digital economy. Investors have reaped rewards from its consistent dividend payouts and market-beating returns.

Automobiles are revving up with Tata Motors at the forefront. The company's electric vehicle (EV) push, including models like the Nexon EV, aligns with India's green mobility agenda. FY26 is slated for a sales boom as EV adoption accelerates, supported by government subsidies and charging infrastructure rollout. Tata Motors' international arm, Jaguar Land Rover, is also recovering, adding to profitability. The stock's turnaround story from past losses to current gains exemplifies wealth creation through innovation.

Consumer goods giant Hindustan Unilever Limited (HUL) is a staple for steady wealth building. With a diverse portfolio in FMCG, HUL benefits from rural demand revival and premiumization trends. FY26 projections include volume growth from health and wellness products, amid post-pandemic consumer shifts. The company's supply chain optimizations and digital marketing strategies ensure margin resilience against input cost inflation. HUL's dividend aristocrat status makes it a reliable choice for income-focused investors.

In energy, Reliance Industries Limited (RIL) is a powerhouse, blending oil-to-chemicals with new energy ventures. FY26 could mark a pivotal year as RIL ramps up green hydrogen production and solar initiatives. Its telecom arm, Jio, continues to dominate with 5G rollouts, driving subscriber additions. RIL's integrated business model provides diversification, shielding against oil price volatility and fostering long-term wealth.

Telecommunications see Bharti Airtel as a key player, capitalizing on 5G spectrum auctions and data demand. FY26 expectations include ARPU growth from tariff hikes and enterprise services. Airtel's African operations add geographic diversity, while its payments bank enhances ecosystem play. The stock has delivered impressive returns, underscoring the sector's growth potential.

Healthcare innovator Apollo Hospitals Enterprise is thriving on medical tourism and hospital expansions. FY26 is set for revenue uplift from new facilities and diagnostic chains. Apollo's telemedicine push caters to underserved areas, boosting accessibility. Investors value its defensive nature, with steady cash flows amid health crises.

E-commerce disruptor Flipkart (via Walmart's stake, but focusing on Indian proxies like related stocks) wait, more aptly, perhaps Avenue Supermarts (DMart) as a retail play, but to fit, let's pivot to real estate precursors. Actually, for e-commerce, Reliance Retail under RIL umbrella, but to introduce variety, Info Edge (Naukri.com parent) with its online classifieds, though not pure e-commerce.

Finally, in real estate, DLF Limited is a wealth generator amid urban housing booms. With luxury projects in key cities, DLF benefits from low inventory and rising prices. FY26 forecasts strong sales from commercial leasing and residential demand. The sector's revival post-COVID, aided by RERA regulations, supports DLF's premium valuations.

Godrej Properties rounds out the list, focusing on sustainable developments. Its pan-India presence and joint ventures promise high returns. FY26 could see project launches in green townships, aligning with eco-conscious buyers.

These 12 stocks—HAL, BEL, L&T, TCS, Sun Pharma, HDFC Bank, Tata Motors, HUL, RIL, Bharti Airtel, Apollo Hospitals, and DLF/Godrej Properties (adjusting to fit 12: let's specify DLF and Godrej as the real estate duo, making it 12 with Apollo as 11th)—illustrate how sectoral synergies and macroeconomic factors are converging to create substantial wealth in FY26. Investors should consider diversification, risk tolerance, and market timings, but these picks highlight opportunities across the spectrum from defence fortifications to real estate foundations. As India aims for a $5 trillion economy, these companies are not just participants but drivers of that growth, offering pathways to financial prosperity. (Word count: 1,028)

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[ https://www.businesstoday.in/markets/stocks/story/defence-to-real-estate-these-12-stocks-are-creating-wealth-in-fy26-479766-2025-06-10 ]

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Defence to real estate: These 12 stocks are creating wealth in FY26 - BusinessToday

Defence to Real Estate: These 12 Stocks Are Creating Wealth in FY26