Shares of defence companies were in focus on Tuesday after Kotak Institutional Equities said "FY2027 [will] be a year of strong growth" following its Defence Forum 2026, where it hosted plant visits and management interactions with MTAR Technologies, Zen Technologies, Astra Microwave and Raghu Vamsi Aerospace.

In morning trade, Astra Microwave rose 1.7% to Rs 1,757, Zen Technologies edged up 0.2% to Rs 1,746.50, while MTAR Technologies slipped 1.1% to Rs 7,493.

Summarising its interactions, Kotak said the forum reinforced "the recurring themes-structural revenue visibility, IDDM-led indigenization tailwinds, rising export optionality and emerging high-volume verticals."

The brokerage added that management commentary pointed to "a tangible 2-4-year demand pipeline, backed by larger orderbooks, improving NWC discipline and ongoing wallet-share gains with both DPSUs and global OEMs, all set to making FY2027 an inflection year."

On MTAR Technologies, Kotak said management reiterated "about 80% yoy revenue growth guidance to Rs16 billion in FY2027, with 24% EBITDA margins," backed by the order book scaling from Rs 26 billion to about Rs 50 billion by the end of FY27 and "4-year+ demand visibility."

It noted that while clean energy remains the anchor business, "data center racks (Rs4-5 billion potential), civil nuclear... and aerospace & defense... emerge as new growth legs."

For Zen Technologies, the brokerage said management reiterated "cumulative revenue guidance of Rs40 bn over the next two years," driven by stronger order inflows in simulation and anti-drone systems.

It described the Hyperstrike interceptor drone as "the key strategic pivot, opening a new high-volume category," while adding that the Defence Acquisition Procedure (DAP) 2026's "IDDM focus is a structural tailwind" for the company.

On Astra Microwave, Kotak said the company is "fast becoming a key seeker and radar supplier across Rudram, anti-ship cruise missile, Astra missile and VL-SRSAM," with defence accounting for 80-85% of its business.

It added that the HAL-approved Uttam AESA radar programme is "likely to be supplied from the 90th LCA onward, translating to 7-8 years of recurring revenue" at the current production rate.

The brokerage also highlighted Astra Microwave's technology strengths, saying "MMIC ownership (in-house design, SE Asia fab), proprietary nitrogen-filled packaging and laser welding (matched only by NASA) are core moats," while noting that commercial bid intensity remains the key swing factor.