6 Stocks From 2 Sectors to Watch as the Union Budget 2026 Approaches

As the Union Budget 2026 approaches, investors are closely tracking sectors in focus for policy continuity and higher government spending.

Tourism and hospitality are gaining attention due to rising domestic travel, improving infrastructure, such as the UDAN scheme connecting 90 airports across India.

In Budget 2025, the government allocated Rs 25.4 billion (bn) to tourism development, reinforcing its importance as a growth engine.

At the same time, affordable housing remains a key focus area, supported by rapid urbanisation, rising housing demand, and government-led initiatives like Pradhan Mantri Awas Yojana Urban 2.0, which targets the construction of 10 million (m) houses.

Recent discussions around revising the Rs 4.5 m affordable housing price further brought real estate stocks into focus.

Against this backdrop, here are 6 fundamentally strong stocks from 2 sectors to watch...

Tourism & Hospitality

#1 Thomas Cook (India) Ltd

The first stock is Thomas Cook, one of India's largest travel and tourism companies. It operates across travel services, foreign exchange, leisure hospitality through Sterling Holidays, and digital imaging.

The company has a presence in 28 countries and is a leading player in prepaid forex cards and holiday packages, serving both individual and corporate customers.

Growth is supported by high travel demand and the company's focus on digital initiatives, including AI-based travel tools and a 10-minute forex delivery service.

The hospitality business is expanding with a pipeline of around 25 resorts.

Policy support, GST-related reforms, and government-led economic growth are expected to support discretionary travel spending in the coming periods.

Financial Highlights of Thomas Cook (India)

Source: Company Financial Report

The company delivered strong growth in revenue which increased from Rs 50.5 bn in FY23 to over Rs 81 bn in FY25, supported by a recovery in travel demand.

Operating margins improved steadily, reflecting better cost control and scale benefits. The net profit turned meaningful from FY24 onwards and remained stable in FY25, indicating improved profitability.

The cash flow from operations (CFO) was consistently higher than net profit, highlighting healthy cash generation and efficient working capital management.

#2 BLS International Services Ltd

The second stock is BLS International Services, a provider of visa, passport, and consular services. The company operates in more than 70 countries and works with 46 government clients.

Its business is divided into visa and consular services and digital services. BLS has a strong global position in visa outsourcing by value.

The company's growth is supported by the recovery in global travel and increasing government preference for outsourcing citizen services, with a large part of the market still not outsourced.

Recent acquisitions such as iDATA and Citizenship Invest have expanded its reach.

The Aadhaar-related digital services project provides long-term visibility for its technology-led segment.

Financial Highlights of BLS International Services

Source: Company Financial Report

The company reported steady revenue growth, supported by acquisitions and higher service volumes.

Operating margins expanded sharply as more operations shifted to a self-managed model. Net profit increased consistently and reached a peak in FY25, reflecting improved profitability.

Operating cash flows remained strong and higher than net profit, indicating efficient working capital management and good cash conversion.

#3 Le Travenues Technology Ltd

The third stock is Le Travenues Technology, which operates the ixigo, Confirmtkt, and abhibus platforms, offering bookings for trains, flights, buses, and hotels. The company uses technology and data-driven tools to cater to India's fast-growing domestic travel market.

It has a strong presence in tier II and tier III cities and focuses on price-conscious travelers.

The company's growth is supported by rising discretionary spending and steady expansion in domestic travel demand.

Government initiatives to expand rail capacity and increase spiritual and regional tourism support long-term travel volumes.

Financial Highlights of Le Travenues Technology

Source: Company Financial Report

The company reported steady revenue growth, reaching over Rs 9,100 m in FY25, supported by higher booking volumes.

Operating margins improved in FY25 but moderated in H1 FY26 due to temporary cost pressures.

Net profit remained positive across periods, while strong operating cash flows, especially in FY25 and H1 FY26, indicate healthy cash generation from core operations.

Realty Stocks in Focus

#4 Oberoi Realty Ltd

The fourth stock is Oberoi Realty, a Mumbai-based real estate developer with a focus on premium residential projects, along with office, retail, and hospitality assets. Residential projects contribute more than 90% of its revenue.

The company has completed around 50 projects and holds a strong position in Mumbai's luxury housing market. It is also expanding into Gurugram to diversify geographically.

Growth is supported by steady demand in the luxury housing segment and the company's entry into the NCR market.

Expansion of annuity assets, including the Commerz III office project, is expected to improve rental income visibility.

Financial Highlights of Oberoi Realty

Source: Company Financial Report

The company reported steady revenue growth, reaching its highest level in FY25 on the back of strong residential sales. Operating margins improved, reflecting higher pricing and better project mix.

Net profit remained consistently strong with margins above 40%, indicating high profitability. Cash flows improved after FY23, supported by better collections and good demand across core projects.

# 5 Lodha Developers Ltd

The fifth stock is Lodha Developers (officially known as Macrotech Developers Limited), which is one of India's largest real estate developers.

The company has a strong presence in the Mumbai Metropolitan Region and has expanded into Pune and Bengaluru. Its portfolio covers luxury, premium, and affordable housing.

The company follows a deep market penetration strategy across key cities. Expansion into the Delhi NCR market by FY27 and the scaling up of annuity income from warehousing, retail assets, and the data center park at Palava are expected to support long-term growth.

Financial Highlights of Lodha Developers

Source: Company Financial Report

The company reported strong revenue growth over the last three years, due to good housing demand.

Operating margins improved steadily, reflecting better project execution and pricing. Net profit increased from FY23 onwards, showing a clear improvement in profitability.

Operating cash flows remained strong and often higher than net profit, indicating efficient collections and disciplined capital management.

#6 Anant Raj Ltd

The sixth stock is Anant Raj, a real estate developer with most of its operations in the Delhi-NCR region.

The company develops residential housing projects, townships, and commercial assets such as IT parks and office spaces.

It has also diversified into data centres and cloud-related services through its subsidiary, expanding beyond traditional real estate.

The company's growth is supported by the expansion of the company's data center business, with a planned IT load capacity of 357 MW by 2032.

Policy initiatives such as Digital India and data localisation support long-term demand. Upcoming luxury residential projects in Gurugram and expansion into Andhra Pradesh provide additional growth visibility.

Financial Highlights of Anant Raj

Source: Company Financial Report

The company reported steady revenue growth over the last 3 years, due to improving project execution.

Operating and net profit margins expanded reflecting better cost control and lower debt levels. Cash flows were volatile during the expansion phase, but H1 FY26 shows a clear improvement, with operating cash flow covering a larger share of net profit.

Other High-Impact Sectors Around Budget 2026

While tourism, hospitality, and Realty remain key themes ahead of the Union Budget 2026, investors are also tracking several other sectors in focus ahead of budget.

We have written about Budget-linked themes such as space, defence, capital goods manufacturing, and semiconductors, which readers may also explore for deeper sector-specific insights.

Ultimately, Budget 2026 is a sentiment-driven trigger. Investors should monitor Budget announcements, sector-wise fund allocations, and emerging policy trends.

Over the long term, however, companies with strong fundamentals, sustainable business models, and financial resilience will create lasting value.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...