Indra (IDR.MC): 2Q to see a growth acceleration in Defence underpinning the mid-term growth trajectory; Buy

Research evidence excerpt

Indra (IDR.MC): 2Q to see a growth acceleration in Defence underpinning the mid-term growth trajectory; Buy

Equity Research

24 June 2026 | 9:45PM BST

Indra (IDR.MC): 2Q to see a growth acceleration in Defence

underpinning the mid-term growth trajectory; Buy

We update our estimates for Indra ahead of its 2Q26 results for FX along with Mohammed Moawalla

+44(20)7774-1726 |

refining our quarterly segmental topline and EBIT assumptions for FY26, with mohammed.moawalla@gs.com

Goldman Sachs International

underlying revenue growth and EBIT margin broadly unchanged across FY26-30. We

Deepshikha Agarwal

incorporate Indra’s BPO business disposal which, along with some below-the-line +1(212)934-6961 |

refinements, results in Adjusted EPS decreasing by c.1% across FY26-30E. With an deepshikha.agarwal@gs.comGoldman Sachs India SPL

unchanged Defence (ex-Tess) revenue 2025-30 CAGR expectation of 29%, we Uzair Merchant

expect investor focus to remain on Defence revenues which were guided to reach at +44(20)7774-7645uzair.merchant@gs.com|

least €1bn in 1H26, implying a significant acceleration in 2Q as well as further Goldman Sachs International

HaouachDefence contract visibility from Special Modernization Programs (PEMs) and Defence Ahlam | +44(20)7051-8714

order backlog, which has been €11bn+ since end of 2025. ahlam.haouach@gs.com Goldman Sachs International

We remain constructive on Indra’s growth story and continue to see scope for further

potential upside, underpinned by multi-year European Defence spending and

augmented by Indra’s ability to serve the entire Defence value chain with its broad

product portfolio. That said, over the near term, further re-rating is likely to remain

contingent on a visible improvement in topline momentum in Q2, driven by Defence,