Goldman Sachs turns bullish on India's aerospace, defence sector
- IBEF
- October 6, 2025
Goldman Sachs has turned bullish on India’s aerospace and defence sector, highlighting strong export potential and a favourable shift in the industry landscape. With the government aiming to more than double defence exports to Rs. 50,000 crore (US$ 5.63 billion) by FY29 from Rs. 23,600 crore (US$ 2.66 billion) in FY24, the brokerage has placed private sector companies ahead of their public sector peers. Its top buy picks include Solar Industries, Bharat Electronics, Data Patterns, and PTC Industries. At the same time, Bharat Dynamics has been initiated at Sell due to margin pressures and limited earnings visibility.
The Nifty Defence index has surged nearly 23% in CY25 compared with a modest 5% rise in the Nifty 50, supported by gains of up to 38% in select defence stocks. Goldman Sachs projects private defence firms to deliver 32% compound annual growth in earnings per share between FY25 and FY28, versus 13% for public sector undertakings, driven by global supply chain linkages, adoption of advanced technologies like Artificial Intelligence (AI)-enabled systems and Unmanned Aerial Vehicles (UAVs), and expanding Total Addressable Market projected to cross Rs. 10,00,000 crore (US$ 112 billion) over the next 20 years. While private players face higher working capital needs, the brokerage views them as better placed to capture long-term opportunities in exports and indigenisation despite risks from policy shifts and global demand changes.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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