3 Specialised Batteries and Defence Electronics Maker, Air Conditioning Leader and Transformers and Rectifiers Producer Stocks With a Strong Future Roadmap: HBL Engineering, Blue Star and Transformers and Rectifiers (India)

HBL Engineering, Blue Star and Transformers and Rectifiers (India): ROE of 15.4% to 36.8% and FY22 to FY26 revenue CAGR of 19.6% to 28.0%. Prices as of 26 Oct 2026.

Updated: 27 Oct 2026 • 12:12 pm

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3 Specialised Batteries and Defence Electronics Maker, Air Conditioning Leader and Transformers and Rectifiers Producer Stocks With a Strong Future Roadmap: HBL Engineering, Blue Star and Transformers and Rectifiers (India)

Quick Answer

The three defence electronics, cooling and grid stocks to watch are HBL Engineering, Blue Star and Transformers and Rectifiers (India). Their return on equity ranges from 15.4% to 36.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 19.6% to 28.0%. HBL Engineering leads on both return on equity at 36.8% and revenue growth at 28.0% a year. Prices are based on the 26 October 2026 close, and this article is educational, not investment advice.

Defence electronics, cooling and grid stocks bring together companies with a visible plan for the years ahead. HBL Engineering, Blue Star and Transformers and Rectifiers (India) cover a specialised batteries and defence electronics maker, an air conditioning leader and a transformers and rectifiers producer.

This list covers three defence electronics, cooling and grid stocks with complete current figures: HBL Engineering, Blue Star and Transformers and Rectifiers (India). Every figure comes from the latest reported financials and the 26 October 2026 market close. Companies without complete current figures were left out.

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Table of Contents

What Are Defence Electronics, Cooling and Grid Stocks?

Defence electronics, cooling and grid stocks are listed companies that make defence and railway electronics, cooling products and power equipment for utilities and industry. Their earnings depend on government orders, summer demand, grid spending and input costs.

Defence Electronics, Cooling and Grid Stocks at a Glance

Company	CMP (Rs)	Market Cap (Rs Cr)	P/E	Industry P/E	ROE (%)	D/E
HBL Engineering	760.8	22,507	28.8	36.9	36.8	0.03
Blue Star	1,504.5	32,243	63.3	43.1	15.4	0.24
Transformers and Rectifiers (India)	299.7	9,776	31.2	43.9	18.4	0.35

On valuation, HBL Engineering and Transformers and Rectifiers (India) trade at a P/E below the industry P/E, while Blue Star trades above it, which reflects the growth the market already expects. Readers comparing defence electronics, cooling and grid stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.

Why Do Defence Electronics, Cooling and Grid Stocks Have a Strong Roadmap in India?

Defence electronics, cooling and grid stocks have a strong roadmap in India because defence and railway modernisation, rising cooling needs and grid upgrades keep filling order books.

Defence and rail. Safety and electronics orders keep rising.
Cooling demand. Hotter summers lift air conditioner sales.
Grid upgrades. Utilities add transformers for new load.

Why HBL Engineering Features Among These Defence Electronics, Cooling and Grid Stocks

Among the defence electronics, cooling and grid stocks on this list, HBL Engineering, formerly HBL Power Systems, makes specialised batteries, defence electronics, railway safety systems, and electronics for aerospace and industrial use.

Revenue rose from Rs 1,251 crore in FY22 to Rs 3,362 crore in FY26, a compound annual growth rate of 28.0%. Net profit grew from Rs 93.7 crore in FY22 to Rs 814 crore in FY26, which works out to a compound annual growth rate of 71.7%.

In the June 2026 quarter, revenue grew 6.0% year on year to Rs 659 crore. The company has a return on equity of 36.8%, a debt to equity ratio of 0.03 and a market capitalisation of Rs 22,507 crore. The stock trades at a P/E of 28.8, below the industry P/E of 36.9.

Roadmap: The company has grown its defence electronics and railway safety businesses, including systems for collision avoidance, and is expanding its battery lines. Orders from railways and defence customers provide a long runway.

What to watch: Monitor large railway and defence orders and their execution schedules.

Why Blue Star Features Among These Defence Electronics, Cooling and Grid Stocks

Among the battery and railway safety electronics shares on this list, Blue Star is an air conditioning and commercial refrigeration company that sells room air conditioners, cooling products and electro-mechanical projects across India.

In the June 2026 quarter, revenue grew 13.4% year on year to Rs 3,399 crore. Revenue rose from Rs 6,100 crore in FY22 to Rs 12,464 crore in FY26, a compound annual growth rate of 19.6%.

Net profit grew from Rs 168 crore in FY22 to Rs 527 crore in FY26, which works out to a compound annual growth rate of 33.1%. The company has a return on equity of 15.4%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 32,243 crore. The stock trades at a P/E of 63.3, above the industry P/E of 43.1.

Roadmap: The company benefits from rising air conditioner penetration, growth in commercial buildings and expansion of cold chain. A wide service network and trusted brand support market share.

What to watch: Track room air conditioner volumes, commercial cooling orders and project execution.

Why Transformers and Rectifiers (India) Features Among These Defence Electronics, Cooling and Grid Stocks

Among the three companies on this list, Transformers and Rectifiers (India) is a Gujarat-based manufacturer of power and distribution transformers, reactors and rectifiers for utilities and industrial customers in India and overseas.

The company has a return on equity of 18.4%, a debt to equity ratio of 0.35 and a market capitalisation of Rs 9,776 crore. The stock trades at a P/E of 31.2, below the industry P/E of 43.9.

Revenue rose from Rs 1,172 crore in FY22 to Rs 2,570 crore in FY26, a compound annual growth rate of 21.7%. Net profit grew from Rs 216 crore in FY25 to Rs 272 crore in FY26, a rise of 25.8%.

Roadmap: Investment in transmission networks and renewable energy evacuation is lifting demand for large transformers. The company has been adding manufacturing capacity to take on bigger orders and to widen its export reach.

What to watch: Follow order book growth and the ramp-up of new manufacturing capacity.

HBL Engineering vs Blue Star vs Transformers and Rectifiers (India) on Key Financials

The table below sets the three defence electronics, cooling and grid stocks side by side on revenue, profit and margin, using reported figures.

Company	FY22 Revenue (Rs Cr)	FY26 Revenue (Rs Cr)	Revenue CAGR (FY22-FY26)	FY26 Net Profit (Rs Cr)	FY26 Net Margin
HBL Engineering	1,251	3,362	28.0%	814	24.2%
Blue Star	6,100	12,464	19.6%	527	4.2%
Transformers and Rectifiers (India)	1,172	2,570	21.7%	272	10.6%

HBL Engineering posts the highest return on equity in this group at 36.8%. Blue Star has the largest FY26 revenue at Rs 12,464 crore, and HBL Engineering shows the fastest revenue growth with a 28.0% compound annual rate. A useful habit with defence electronics, cooling and grid stocks is to check each new quarterly result against the capacity plans the company described earlier.

Key Risks to Check Before Investing in Defence Electronics, Cooling and Grid Stocks

Every theme carries risks that deserve a check before any decision. For these defence electronics, cooling and grid stocks, the main points are:

Order timing. Government orders can shift between periods.
Input costs. Metal and component prices affect margins.
Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them.

Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.

Use the Univest Stock Screener to filter defence electronics, cooling and grid stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.

Final Thoughts on Defence Electronics, Cooling and Grid Stocks

Defence electronics, cooling and grid stocks suit investors who prefer to study business strength before price moves. HBL Engineering, Blue Star and Transformers and Rectifiers (India) each have a clear plan to grow. Based on the 26 October 2026 close, HBL Engineering trades at Rs 760.8, Blue Star at Rs 1,504.5 and Transformers and Rectifiers (India) at Rs 299.7.

Download the Univest iOS App or Univest Android App to track defence electronics, cooling and grid stocks, set price alerts and get research-backed stock ideas.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

What are defence electronics, cooling and grid stocks?

Ans. Defence electronics, cooling and grid stocks are listed companies that make defence and railway electronics, cooling products and power equipment for utilities and industry. Their earnings depend on government orders, summer demand, grid spending and input costs. This list looks at three of them, HBL Engineering, Blue Star and Transformers and Rectifiers (India), using reported FY22 to FY26 financials and the 26 October 2026 closing prices.

Which defence electronics, cooling and grid stocks are covered in this list?

Ans. This list covers HBL Engineering, Blue Star and Transformers and Rectifiers (India). Based on the 26 October 2026 close, HBL Engineering traded at Rs 760.8, Blue Star at Rs 1,504.5 and Transformers and Rectifiers (India) at Rs 299.7. Their return on equity ranges from 15.4% to 36.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 19.6% to 28.0%.

Why do defence electronics, cooling and grid stocks have a strong future roadmap in India?

Ans. Defence electronics, cooling and grid stocks have a strong roadmap in India because defence and railway modernisation, rising cooling needs and grid upgrades keep filling order books. The main drivers are as follows. Defence and rail. Safety and electronics orders keep rising. Cooling demand. Hotter summers lift air conditioner sales. Grid upgrades. Utilities add transformers for new load. Together these factors give the companies on this list a visible path for growth over the coming years.

How has HBL Engineering performed financially?

Ans. Revenue rose from Rs 1,251 crore in FY22 to Rs 3,362 crore in FY26, a compound annual growth rate of 28.0%. Net profit grew from Rs 93.7 crore in FY22 to Rs 814 crore in FY26, which works out to a compound annual growth rate of 71.7%. In the June 2026 quarter, revenue grew 6.0% year on year to Rs 659 crore. The company has a return on equity of 36.8%, a debt to equity ratio of 0.03 and a market capitalisation of Rs 22,507 crore. The stock trades at a P/E of 28.8, below the industry P/E of 36.9. Looking ahead, the company has grown its defence electronics and railway safety businesses, including systems for collision avoidance, and is expanding its battery lines. Orders from railways and defence customers provide a long runway.

How has Blue Star performed financially?

Ans. Revenue rose from Rs 6,100 crore in FY22 to Rs 12,464 crore in FY26, a compound annual growth rate of 19.6%. Net profit grew from Rs 168 crore in FY22 to Rs 527 crore in FY26, which works out to a compound annual growth rate of 33.1%. In the June 2026 quarter, revenue grew 13.4% year on year to Rs 3,399 crore. The company has a return on equity of 15.4%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 32,243 crore. The stock trades at a P/E of 63.3, above the industry P/E of 43.1. Looking ahead, the company benefits from rising air conditioner penetration, growth in commercial buildings and expansion of cold chain. A wide service network and trusted brand support market share.

How has Transformers and Rectifiers (India) performed financially?

Ans. Revenue rose from Rs 1,172 crore in FY22 to Rs 2,570 crore in FY26, a compound annual growth rate of 21.7%. Net profit grew from Rs 216 crore in FY25 to Rs 272 crore in FY26, a rise of 25.8%. The company has a return on equity of 18.4%, a debt to equity ratio of 0.35 and a market capitalisation of Rs 9,776 crore. The stock trades at a P/E of 31.2, below the industry P/E of 43.9. Looking ahead, investment in transmission networks and renewable energy evacuation is lifting demand for large transformers. The company has been adding manufacturing capacity to take on bigger orders and to widen its export reach.

What risks should investors check before buying defence electronics, cooling and grid stocks?

Ans. Investors should check a few risks before buying defence electronics, cooling and grid stocks. Order timing. Government orders can shift between periods. Input costs. Metal and component prices affect margins. Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.

Is this list of defence electronics, cooling and grid stocks investment advice?

Ans. No. This article is educational and uses publicly available data as of the 26 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.