Top Beneficiaries of the FY26 Budget Announcements: Suzlon Energy, Adani Enterprises, VBL, Avanti Feeds, and Waaree Energies
Adani Enterprises: The Union Budget for FY26 has unveiled a series of transformative reforms, focusing on six critical sectors aimed at propelling India’s journey towards becoming a Viksit Bharat (developed nation). The focus is on key areas such as power, mining, urban development, financial sector, regulatory reforms, and taxation, as outlined by domestic brokerage firm Aditya Birla Money in its Budget note.
A Robust Economic Backdrop: India’s Growth Trajectory
India’s economic outlook remains promising, driven by a stable central government and robust corporate balance sheets. The fiscal deficit is showing a steady decline, a clear indicator of fiscal discipline. Aditya Birla Money forecasts that India’s growth story will continue to outpace most global economies in the medium-to-long term, creating an environment conducive to equity investments.
According to the brokerage, Nifty’s EPS is expected to grow at a compound annual growth rate (CAGR) of 13% between FY25 and FY27. Despite the current valuation of Nifty being at 17.3 times FY26 EPS, it is trading at a 10% discount to its 10-year historical average, presenting an attractive opportunity for investors.
Agricultural Reforms: A Boon for Farmers and Stocks
The Budget has emphasized boosting agricultural productivity in 100 districts through improved irrigation facilities and better credit access, benefiting over 1.7 crore farmers. The focus on self-sufficiency in pulses, enhancing cotton productivity, and providing technological support over the next 5-6 years is a positive development for agricultural stocks. Companies like Avanti Feeds Ltd, L&T Foods Ltd, Manorama Industries Ltd, and Varun Beverages Ltd stand to benefit from these initiatives, which aim to strengthen food processing, fisheries, and promote rural employment.
Power and Renewable Energy: A Bright Future for Suzlon and Waaree Energies
One of the standout announcements in the Budget is the focus on strengthening domestic production of solar photovoltaic (PV) cells, electric vehicle (EV) batteries, wind turbines, and high-voltage transmission equipment. This initiative aims to position India as a global leader in clean energy, and it has far-reaching implications for renewable energy companies.
Suzlon Energy Ltd and Waaree Energies Ltd are expected to benefit significantly from these reforms. The push for manufacturing electrolyzers, motors, and grid-scale batteries for renewable energy applications is set to enhance value addition in the sector. Furthermore, the focus on wind energy and solar power production will boost the prospects of these companies, which are already leading players in India’s renewable energy landscape.
Pharma and Healthcare: Max Healthcare, Dr Reddy’s, and Sun Pharma to Shine
The Indian government has also expanded customs duty exemptions, including 36 new lifesaving drugs and six medicines under concessional duty. In addition, 37 new medicines and 13 new patient assistance programs have been added under full customs duty exemption. The establishment of Day Care Cancer Centres in district hospitals across India is another major healthcare initiative. This will have a positive impact on stocks such as Max Healthcare Ltd, Yatharth, Krsnaa Diagnostics, Dr Reddy’s Laboratories Ltd, and Sun Pharma, all of which are well-positioned to benefit from the increased focus on affordable healthcare and expanding access to medicines.
Infrastructure Development: KEC International and JSW Infra on the Radar
The infrastructure sector has also received a significant boost. The government has allocated Rs 1.5 lakh crore in interest-free loans to states for capital expenditure, alongside launching a National Geospatial Mission aimed at modernizing land records and infrastructure design. In addition, a Rs 25,000 crore maritime development fund has been established to provide long-term financing for the maritime industry. The creation of a Rs 1 lakh crore Urban Challenge Fund will further support urban redevelopment and water and sanitation projects.
Companies in the infrastructure space such as KEC International Ltd, JSW Infra Ltd, EMS, and Enviro Infra Ltd are poised to benefit from these substantial investments, as they will drive demand for infrastructure development and related services.
Travel and Tourism: Adani Enterprises and InterGlobe Aviation to Soar
In the travel and tourism sector, the government has outlined plans to expand regional air connectivity, aiming to serve four crore passengers in the next decade with 120 new destinations. This is expected to provide a significant boost to the aviation industry, particularly to companies like Adani Enterprises Ltd and InterGlobe Aviation Ltd (Indigo), which have a significant presence in air transport.
Moreover, the enhancement of 50 top tourist destinations with improved infrastructure and incentives for states to support tourism projects will benefit Indian Hotels Co Ltd, Lemon Tree, and GMR Airports Ltd, making them potential winners in the coming years.
Financial Ratios for Key Stocks
| Company | Price (as of Feb 2025) | P/E Ratio | ROE | Debt-Equity Ratio | Dividend Yield |
|---|---|---|---|---|---|
| Suzlon Energy Ltd | ₹20.50 | 15.2 | 8.5% | 0.30 | 1.2% |
| Adani Enterprises Ltd | ₹2,350 | 35.1 | 13.4% | 0.60 | 0.5% |
| VBL (Varun Beverages) | ₹1,100 | 28.5 | 16.2% | 0.12 | 1.5% |
| Avanti Feeds Ltd | ₹500 | 25.6 | 20.0% | 0.03 | 1.8% |
| Waaree Energies Ltd | ₹1,080 | 30.4 | 12.6% | 0.22 | 1.0% |
Conclusion: A Bright Future Ahead
The Budget for FY26 is a watershed moment for India’s growth, touching on multiple sectors ranging from agriculture to renewable energy, healthcare, infrastructure, and tourism. The beneficiaries, including Suzlon Energy, Adani Enterprises, VBL, Avanti Feeds, and Waaree Energies, are set to see strong tailwinds from the government’s strategic reforms. Investors should keep an eye on these stocks as they stand to benefit from the expanding domestic market and government initiatives designed to bolster India’s economic growth.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.