Synopsis:
BEML is in focus as reports emerged that its status is likely to be upgraded from Miniratna to Navratna status, giving the company
The shares of this leading defence-based company are in focus following a crucial report in its favour. In this article, we will dive more into the details and the significance of this announcement.
With a market capitalization of Rs 16,937 crore, the shares of BEML Ltd made a day high of Rs 4146.10 per share, up by 2 percent from its previous day closing price of Rs 4057.70 per share. Over the past five years, the stock has delivered a robust return of 556 percent.
What’s the news
According to reports, defence major BEML is on the verge of being upgraded from Miniratna to Navratna status, with the Finance Ministry seriously weighing the proposal. The company has fulfilled all the necessary conditions to be upgraded, and we can expect a formal announcement from the Department of Public Enterprises soon.
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But what is the benefit of being a Navratna Company?
Owning the Navratna status is a major step-up for any Central Public Sector Enterprise (CPSE) as it empowers the company to make bigger and quicker decisions that do not always require being submitted to the government for approval.
A company classified as Navratna is allowed to make investments ranging from Rs 1,000 crores or 15 percent of its net worth, whichever is less, in a single project, and further investments can be made up to 30 percent of the net worth in a year (as long as it doesn’t exceed Rs 1000 crores).
Besides, the company is given absolute liberty to form joint ventures in foreign countries, tap into uncharted markets, and avail expertise from the locality. Essentially, this recognition stands for rapid decision-making, higher productivity, and enhanced authority for the firm to expand and compete in the market.
Financial Highlights
BEML’s revenue for Q1 FY26 came in at Rs 634 crore, which remained flat from Rs 634 crore in the same quarter last year. However, on a sequential basis, revenue declined by 62 percent from Rs 1,653 crore in Q4 FY25.
Coming to its profitability, the company reported a net loss of Rs 64 crore in Q1 FY26 as compared to a loss of Rs 70 crore in Q1 FY25. However, on a QoQ basis, it recorded a sharp turnaround from a profit of Rs 288 crore.
As of FY25, BEML derived 54 percent of its revenue from its Mining and Construction segment, followed by Defence and Aerospace with 27 percent, and the rest 19 percent is derived from its Rail and Metro segment.
As per the latest filing (June 2025), BEML holds a strong order book of Rs 14,429 crore. In Q1 FY26, it secured new orders worth Rs 435 crore and executed orders totaling Rs 615 crore during the period.
The company has delivered an ROE and ROCE of 10.53 percent and 15.65 percent respectively, and is currently trading at a high P/E of 56.77x as compared to its industry average of 40x.
BEML Limited is a key player in India, catering to various sectors like mining, construction, rail, metro, power, defense, and aerospace. They provide an impressive lineup of machinery, including excavators, bulldozers, dump trucks, bridge systems, recovery vehicles, metro cars, passenger coaches, and track equipment. Plus, they also export their products to international markets!
Written by Satyajeet Mukherjee
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