Union Budget 2026: Here are the 11 stocks analysts think could steal Budget Day spotlight

Stocks to pick on Budget day

• Experts advise 11 Budget picks including NMDC, Bharat Electronics, Larsen & Toubro, Jupiter Wagons, Hindustan Aeronautics,TVS Motor,Waaree Energies

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Finance Minister, Nirmala Sitharaman is set to announce the Union Budget for the financial year 2026-27. Most experts expect the government to increase capital expenditure on February 1 to boost infrastructure and defence which has remained the pivotal theme for the government, while maintaining fiscal deficit of 4.4 percent of GDP or lowering it to 4.3-4.2 percent for FY27. The Centre is also expected to continue focussing on supporting consumption and increasing industrial output, but unlikely to announce significant changes in personal taxes. Considering the mega economic event, analysts suggest betting on and focus on these 11 stocks today:

Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services

NMDC | Target: Rs 98

NMDC stands to benefit from the Budget’s emphasis on manufacturing and supply-chain security through the critical minerals mission, alongside sustained infrastructure capex, which supports long-term demand visibility and reinforces the government’s push toward domestic resource development and import substitution.

Going forward, volumes are expected to rise steadily to 51 million tonnes (MT) in FY27 and 54MT in FY28, aided by EC enhancements and stable realizations. NMDC’s ongoing capex toward evacuation and capacity projects is set to lift capacity to 100MT by FY29-30.

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Bharat Electronics | Target: Rs 520

Bharat Electronics is well positioned as the Budget is expected to prioritise defence and allied sectors, with defence capex growth of ~15% over the planned FY26 base. Additionally, with the Defence Acquisition Council (DAC) recently approving significant capital acquisition proposals, amplifying orderbook visibility; sustained emphasis on indigenisation and strategic electronics underpins long-term demand alongside supportive macro liquidity.

Bharat Electronics continues to remain a key beneficiary of large platform orders across Army, Navy, Airforce as it stands to benefit from large orders like QRSAM, Next generation corvettes, Akash-NG along with the base orders.

With improved indigenization levels and operating leverage benefits, we expect strong margin performance of Bharat Electronics to continue. We expect revenue/PAT to grow at 18%/16% CAGR over FY25-28.

Larsen & Toubro | Target: Rs 4,600

Larsen & Toubro remains a key Budget beneficiary as capital expenditure is expected to grow ~10% YoY and stay near ~3% of GDP, with continued focus on roads, railways, defence, and urban infrastructure, supporting strong order inflows amid a supportive macro and liquidity environment. L&T aims to add nearly 4-5GW of thermal power projects over the next two years out of the total opportunity of 10-15GW ordering in the sector.

It is also eyeing opportunities in nuclear EPC projects. We factor in order inflows to grow at 13% CAGR over FY25-28 for core E&C segment. L&T’s risk-mitigation framework for mega projects and growing international diversification further strengthen execution visibility. We expect core E&C revenue/EBITDA/PAT to grow at a CAGR of 16%/18%/22%.

SBI Life Insurance Company | Target: Rs 2,750

SBI Life should remain in focus as insurance sector reforms, including higher FDI limits and distribution architecture changes, align with the government’s financial inclusion agenda, while benign inflation and steady income growth support long-term protection demand; pending regulatory changes toward composite licences to sell health insurance could materially expand its addressable market.

Management has retained APE (annual premium equivalent) growth guidance of 13–14% with momentum sustaining into FY27. GST impact is expected to be offset by product mix and efficiency, limiting net impact to ~30–40bp. We expect FY25–28 APE/VNB CAGR at 15%/16%, with operating RoEV above 18%.

Devarsh Vakil, Head of Prime Research at HDFC Securities

KNR Constructions | Target: Rs 240

KNR Constructions is poised to benefit from higher MoRTH allocations, asset monetization via InvITs, and budgetary focus on irrigation and river-linking projects. With NHAI’s bidding silence ending in November 2025, the January-March 2026 tender cycle could drive Rs 8,000-10,000 crore inflows. Diversification into mining, solar, and urban infra, alongside favorable bidding norms, supports a strong recovery trajectory by FY27.

Jupiter Wagons | Target: Rs 355

Jupiter Wagons is set to benefit from a 5-10% YoY rise in railway allocations, supporting India’s “Viksit Bharat” vision. A capex pivot toward rolling stock induction, alongside higher spending on the Dedicated Freight Corridor, logistics infrastructure, multi-modal warehousing, and safety upgrades like Kavach 4.0, positions the company for sustained growth within the expanding rail ecosystem.

Garden Reach Shipbuilders and Engineers | Target: Rs 3,110

The Government of India could prioritise Atmanirbharta (self-reliance) in defence by adopting modern techniques, including artificial intelligence and robotics. Maintaining a strong net worth amid moderate capital expenditure (capex), robust order book, and healthy cash accruals should continue to support GRSE over the medium term. Investors can buy the stock with a target price of Rs 3110. At the LTP of Rs 2,764, the stock is trading at 31.3x FY28E EPS.

Hindustan Aeronautics | Target: Rs 5,585

Defence budget is expected to rise 8-10% and capital allocation to increase to Rs 2.1–2.3 lakh crore, implying a 20–30% YoY growth. HAL is the market leader in aerospace, and the company is also focused on developing indigenous aircraft and helicopters, which could provide revenue visibility over the next 5-10 years. Investors can buy the stock with a target price of Rs 5,585. At the LTP of Rs 4,619, the stock is trading at 32.9x FY28E EPS.

Narendra Solanki, Head Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers

TVS Motor Company | Target: Rs 4,350

TVS Motor Company reported strong Q3 FY26 performance, with operating revenue rising 37% YoY to Rs 12,476 crore. Operating EBITDA grew 51% to Rs 1,634 crore, driving record EBITDA margins of 13.1% (vs 12.4% last year), while PBT before exceptional items increased 57% YoY to Rs 1,315 crore. For the nine months ending December 2025, operating revenue rose 29% YoY to Rs 34,463 crore. Operating EBITDA increased 41% to Rs 4,406 crore, while PBT before exceptional items grew 43% to Rs 3,594 crore. PAT also rose strongly to Rs 2,625 crore from Rs 1,858 crore in the same period last year.

TVS Motor recorded its highest-ever quarterly sales in Q3 FY26, with total two- and three-wheeler volumes (including international) rising 27% YoY to 15.44 lakh units, driven by robust growth in motorcycles (+31%), scooters (+25%), and a sharp rebound in three-wheelers. This momentum sustained over 9M FY26, with volumes up 23% YoY to 43.28 lakh units, supported by healthy growth across motorcycles and scooters, and continued recovery in three-wheelers.

International business remained a key growth driver, with two-wheeler sales outside India increasing 35% YoY in both Q3 FY26 and 9M FY26. Volumes reached 3.66 lakh units in Q3 FY26 and 10.47 lakh units for the nine-month period, highlighting TVS Motor’s strengthening global footprint.

EV sales continued to scale up strongly, with Q3 FY26 volumes rising 40% YoY to an all-time high of 1.06 lakh units. For 9M FY26, EV sales increased 26% YoY to 2.56 lakh units, reinforcing the company’s leadership and traction in the electric two-wheeler segment.

TVS Jupiter emerged as the Most Preferred Scooter Brand for FY26, underlining strong brand equity in the mass segment. The company also entered the adventure rally-tourer category with the launch of the premium Apache RTX, which was crowned Indian Motorcycle of the Year 2026, supporting premiumization and portfolio expansion.

Waaree Energies | Target: Rs 3,849

Its revenue/EBITDA/PAT grew by 118.8%/167.2%/118.4% YoY to Rs 7,565/Rs 1,928/ Rs 1,106 crore in Q3FY26, mainly led by strong production of cells (0.8 GW in Q3FY26 vs 0.6 GW in Q3FY25) & modules (3.5 GW in Q3 FY26 vs 1.8 GW in Q3FY25).

Waaree Energies has solid order book of Rs 60,000 crore in Q3FY26 (vs Rs 50,000 crore in Q3FY25) which gives clear revenue visibility of over next 3-4 years. Moreover, order pipeline remains healthy with 100+ GW of orders under pipeline.

The company plans to backward integrate its process by installing 10 GW of Ingot wafers in India which is likely to be commissioned by FY27. Additionally, it plans to expand its existing capacity by installing 5.6 GW (3 GW in India & 2.6 GW in USA) of module capacity & 10 GW in India of cell capacity which is also likely to be commissioned by FY27. With this additional capacity, the company's total capacity would reach 28.4 GW/15.4 GW/10GW in Module/Cell/Ingot wafers by FY27.

The company planned to foray in different line of business, such as Polysilicon/ inverters/smart meters/transformers/BESS/Electrolyser/Green Hydrogen/RE-power infrastructure. The total capex planned is Rs 25,000 crore.

The company has guided Rs 5,500-6,000 crore of EBITDA for FY26. The company aims to overachieve its guidance (9MFY26 EBITDA stands at Rs 4,330 crore) in FY26.

TD Power Systems | Target: Rs 911

TD Power Systems, a leading supplier of sub-60MW AC generators, occupies a strategic spot in power-generation supply chain. Its output, used by turbine-OEMs and EPC players worldwide, makes it a go-to for decentralised power systems, renewables, waste-to-energy, industrial captive generation and AI/data centre infrastructure boom.

TD Power Systems leverages its strong engineering capabilities to deliver customised generator-motor solutions attuned to decarbonisation and grid-modernisation trends. Its upcoming ~0.22msf manufacturing unit in Bengaluru (Rs 120 crore capex), slated for commissioning by Q4FY26, will support scale-up, product diversification.

With presence in 111 nations and exports accounting for 76% of H1FY26 order wins, TD Power Systems has deep relationship with global OEMs. Its diversified end-market exposure spans renewables, industrial cogeneration, heavy industries (sugar, cement and chemicals, etc.) and data centre that reinforces long-term growth.

Order inflows grew ~60% YoY to Rs 656.1 crore, driven primarily by a sharp uptick in export orders. The company successfully secured large US contracts despite tariff headwinds, underscoring its strong competitive positioning and product acceptance in global markets. Management has revised its revenue guidance upwards, with FY27 guidance increased to Rs 2,200 crore (from Rs 2,000 crore) and FY26 revenue guided at Rs 1,800 crore, implying ~50% YoY growth.

For Q3FY26, total revenue stood at Rs 444.9 crore, up 28% YoY, EBIDTA stood at Rs 82.6 crore, up by 33% YoY, PAT came at Rs 55 crore, increased at 24% YoY. Deep engineering capabilities, healthy BS and strong return profile, position TDPS well to capitalise on ongoing capex cycle over the next 3-5 years.