India Capital Goods – 1QFY27F preview: Selective growth as margin headwinds persist

Research evidence excerpt

India Capital Goods – 1QFY27F preview: Selective growth as margin headwinds persist

Global Markets Research

India Capital Goods – 1QFY27F preview 7 July 2026

EQUITY: CAPITAL GOODS

Selective growth as margin headwinds persist Research Analysts

India Capital Goods

Estimate EBITDA margins to dip 58bp y-y to 12.6% for Umesh Raut - NFASL

umesh.raut@nomura.comour coverage universe; order inflows to grow 5% y-y

+91 22 403 74035

Modest OI growth in 1QFY27F due to uncertainties induced by West Asia crisis Aritra Banerjee - NFASL

We estimate order inflows (OI) in our coverage universe grew at a modest 5% y-y to aritra.banerjee@nomura.com

INR1.4tn in 1QFY27F on account of: 1) uncertainties induced by the West Asia crisis +91 22 672 34609

(WAC) which delayed capex-related decision-making, and 2) a lack of a broad-based pick

up in private capex. During the quarter, order inflows were primarily driven by power

transmission, hydrocarbons, civil, transportation infrastructure, and the cables segments.

We expect L&T’s (LT IN, Neutral) core OI at INR746bn, down 3% y-y on account of: 1) an

unfavorable base, 2) moderation in ordering momentum in the Middle-East due to WAC,

and 3) the lack of any ultra-mega order disclosures during the quarter. OI in 1QFY27F

were primarily led by a mega order in the metals and minerals and two large orders in

hydrocarbons and B&F (Buildings & Factories) segments (Fig. 24). Additionally,

hydrocarbon, B&F, power T&D and geostructures won significant orders.

According to our estimates, Hindustan Aeronautic’s (HNAL IN, Buy) 1QFY27F OI is likely

to be worth INR60bn, up 9% y-y. Further, for BEL (BHE IN, Neutral), we estimate

1QFY27F OI at INR35bn, down 54% y-y on a high base of 1QFY26. Notably, contrary to