New Delhi, Jan 4 (NationPress) India’s capital expenditure (capex) cycle is demonstrating early yet unmistakable signs of rejuvenation, and analysts are optimistic that various sectors associated with investment spending may experience significant growth in the coming two to three years.

The India Equity Strategy 2026 report published by Antique Stock Broking indicates that enhancing economic conditions, supportive policies, and escalating investments from both corporates and households are laying the groundwork for a comprehensive capex recovery.

This resurgence is not confined to governmental expenditures; private investment is gradually making a comeback as well.

The defence industry is poised to be one of the most substantial long-term beneficiaries of this capex initiative.

Increased budget allocations, a robust order backlog, and the government's emphasis on indigenisation under the Atmanirbhar Bharat initiative are providing defence companies with enhanced revenue visibility for several years ahead.

Additionally, expanding export opportunities are further bolstering the sector’s growth outlook. Capital goods manufacturers are also expected to witness a sharp upturn in earnings.

The report highlights that new orders are gaining momentum at a time when operating leverage is optimal. With production facilities already operating above long-term average capacity, even minor increases in revenue could result in significant profit surges.

Furthermore, valuations in certain areas of the sector have adjusted, making investments more appealing.

Companies involved in industrial and electronics manufacturing services are likely to benefit from both domestic capex and global supply-chain realignments.

As international corporations aim to diminish their reliance on China following the “China+1” strategy, India is emerging as a favored manufacturing hub.

This trend is anticipated to sustain consistent demand for industrial equipment, electronics, and automation services.

The report also emphasizes that while government infrastructure spending continues to encourage growth, the gradual resurgence of private investment is a significant positive development.

This transition is expected to favor infrastructure developers, construction firms, and engineering companies, particularly those involved in roads, railways, power projects, and urban infrastructure.

Lower interest rates, enhanced affordability, and increasing household investments are also contributing to the revival of housing demand.

This is projected to benefit real estate developers and building material suppliers, including cement producers and construction input vendors.

These segments typically experience a delay in the capex cycle but are likely to see accelerated growth once project execution gains traction.