Which Engineering & Construction stocks should you invest in for FY26?

ET BureauLast Updated: Jun 06, 2025, 05:54:00 AM IST

Synopsis

Jefferies highlights Hindustan Aeronautics, Siemens, Larsen & Toubro, and KEI Industries as top picks in the engineering and construction sector. Order flow for these companies surged by 28% in FY25, driven by strong performances from HAL and Siemens. The brokerage anticipates continued operating leverage, particularly in defence stocks, with power, defence, and railways offering high visibility.

Jefferies said its top stock picks among engineering and construction companies are Hindustan Aeronautics, Siemens, Larsen & Toubro and KEI Industries.

The brokerage said the order flow of companies in these segments rose by 28% in FY25, led by HAL and Siemens.

Agencies

“Operating leverage was seen for most companies led by defence stocks, which should continue to play out in FY26,” said Jefferies in a note. “Power and defence continue to have high visibility ahead and railways outlook has improved.”

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