Synopsis:
Shares rose after securing a ₹712 crore ESM order, reflecting strong demand across defense and technology segments. Backed by robust Q1 profit growth, expanding exports, and a ₹35,000–40,000 crore will contribute to order book, the firm projects 15–17 percent growth with sustained 27 percent margins.
The shares of the prominent defence and aerospace company gained up to 4 percent in today’s trading session after the company received a significant work order for Rs 712 crore.
With a market capitalization of Rs 3,01,016.69 crore, the shares of Bharat Electronics Ltd were trading at Rs 411.80 per share, increasing around 2.23 percent as compared to the previous closing price of Rs 402.80 apiece.
The shares of Bharat Electronics Ltd have seen positive movement following new orders worth Rs 712 crore since September 1, 2025. The orders span IT infrastructure, cybersecurity, ESM systems, blockchain platforms, communication equipment, and related services. This diversification underscores strong business momentum and robust demand across strategic technology and defense segments.
Financial & operational Highlights
The company reported steady growth in Q1FY26, with revenue rising 5 percent to Rs 4,440 crore on a YoY basis and net profit surging 23 percent to Rs 969 crore as compared to the previous year. The faster profit growth relative to revenue indicates improved operational efficiency and cost management, reflecting a healthy financial performance and strong fundamentals for the quarter.
The company’s Q1 margin improvement is driven by a favorable product mix, with a higher share of in-house manufacturing and indigenized products. Gross margins benefited from this composition, while management maintains a 27 percent EBITDA margin guidance for FY26. Future margin expansion will depend on product mix.
The company’s order book of Rs 74,859 crores as of July 1, 2025, highlights a strong pipeline with major contracts including LRSAM worth over Rs 5,000 crore, fuses at Rs 4,500+ crore, and Akash Army and BMP upgrades around Rs 3,000 crore each, and other key programs contribute to a total of Rs 35,000– Rs 40,000 crore.
Revenue recognition indicates Rs 14,000 crore slated beyond three years and Rs 8,000 crore over two to three years, with most execution expected in the next two years. For FY26, key deliveries include Rs 3,000 crore LRSAM, Rs 1,700 crore HimShakti, and other critical defense programs, ensuring consistent execution and robust near-term growth visibility.
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Exports currently contribute 4–5 percent of revenue and are set to double to 10 percent in five years, supported by a 20 percent CAGR. With an FY26 inflow guidance of $120+ million, the portfolio spans radars, missiles, drones, and C4I solutions. Non-defence revenue forms 10–12 percent, while services, now 10–11 percent, aim to reach 13–15 percent in two years. Capex guidance exceeds Rs 1,000 crore for expansions and new-gen instruments.
Management remains confident about strong order inflows, execution capabilities, and sustaining margins. Growth is expected to stay above 15 percent, with visibility toward 16–17 percent. The company also highlights its R&D strength, claiming to be nearly at par with the US and China in AI/ML technology.
Written by Abhishek Singh
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