New Delhi, July 8 -- Indian defence companies are expected to report subdued earnings in the seasonally weak first quarter of FY27, with revenue recognition likely to remain back-ended and concentrated in the second half of the fiscal year, particularly in the fourth quarter.

Although the sector continues to benefit from strong policy support, including the FY27 Defence Budget of approximately Rs.7.85 lakh crore and a capital outlay of around Rs.2.19 lakh crore, near-term revenue visibility remains constrained by execution-related challenges such as delayed project clearances, milestone-based billing cycles, and supply-chain dependencies.

Analysts at Choice Institutional Equities, however, believe these near-term headwinds do not reflec...