BEL’s Breakout Year: The Next-Gen HAL on Steroids in Indian Defence Stocks

BEL’s Breakout Year: The Next-Gen HAL on Steroids in Indian Defence Stocks

Bharat Electronics Ltd (BEL) has been described as a "new HAL on steroids" due to its impressive growth and performance in 2025, notably outperforming Hindustan Aeronautics Ltd (HAL) in share price gains. While both PSL defence stocks have delivered stellar returns over the past five years — over 1,000% each — in 2025 BEL's share price rose by over 40%, significantly outpacing HAL, which remained more of a sell-on-rise stock during the year. BEL’s strong order book worth around Rs 57,000 crore for FY 2025-26, plans for consistent capital expenditure on modernization, and diversification into allied defence and non-defence sectors are considered key catalysts for its growth trajectory. Its focus on shorter order cycles, faster execution, stable margins, and rising defense technology demand contribute to its powerful compounding story, distinguishing it from HAL’s relatively slower recent momentum.​

Key differences highlighted between BEL and HAL stocks include:

• Market Cap: HAL remains the largest with a market cap around Rs 3.26 lakh crore, while BEL is close at around Rs 3 lakh crore.

• Share Price Performance: BEL’s price surged nearly 41% YTD in 2025, outpacing HAL's 17% rise.

• Order Book & Revenue Visibility: BEL has a multi-year revenue visibility due to a strong and expanding order book (~Rs 57,000 crore).

• Margins and Execution: BEL exhibits stable margins (28-30%), superior execution speed, and a cash flow-positive structure.

• Growth Strategy: BEL aims to increase non-defence business revenue and expand exports globally.

A market view suggests BEL is evolving into a more agile and diversified entity with potential to sustain higher growth compared to HAL’s more capital-intensive aerospace and aircraft manufacturing focus. This makes BEL an attractive investment for those looking for a high-growth PSU defence stock with better margin stability and expansion prospects.​

Thus, BEL's current growth and operational advantages have earned it the reputation of a "new HAL on steroids," reflecting a compelling investment narrative distinct from but comparable to HAL’s legacy stature in India’s defence sector.