The shares of a Navratna PSU company, specializing in designing, developing, and manufacturing advanced electronic products and systems for the defence sector, are in focus after management gave a revenue guidance of 15 percent growth in FY26
With a market capitalization of Rs. 2,85,483.41 crores on Thursday, the shares of Bharat Electronics Ltd jumped by upto 0.7 percent, making a high of Rs. 393.60 per share compared to its previous closing price of Rs. 390.60 per share.
Guidance of Bharat Electronics Ltd
According to the company’s recent conference call update, Bharat Electronics Ltd’s management is aiming for strong revenue growth of ~15 percent in FY26 and the EBDITA margin growth of ~ 27 percent by FY26.
Along with it, the company plans to invest more than Rs. 1,000 crore annually in FY26 (up from Rs. 900 crore in FY24), by including new, larger factories at key locations in India and Management is highly optimistic, targeting 15–17.5 percent revenue CAGR and >20 percent PAT growth over 5 years, with order inflow guidance for FY26 at Rs. 27,000 crore (ex-QRSAM) and potential for much higher if mega orders materialize.
Furthermore, for R&D, it plans to add 700–1,000 engineers in FY26 and continue significant investments in both in-house projects and collaborations with academia, start-ups, and MSMEs. And FY25, exports reached $106 million, showing strong growth and outperforming the overall defence sector. For FY26, the company is targeting exports of $120 million, aiming for over 15 percent growth.
Bharat Electronics Ltd at a Glance
Bharat Electronics Limited (BEL) is a premier Navratna PSU under the Ministry of Defence, Government of India, established in 1954 to advance India’s self-reliance in defense electronics. Headquartered in Bengaluru, BEL has grown into a multi-product, multi-technology conglomerate with manufacturing units across major Indian cities and international offices in the US, Singapore, Vietnam, Oman, and Sri Lanka.
The company’s core expertise lies in designing, developing, and manufacturing cutting-edge electronic systems for the Army, Navy, and Air Force, including radars, missile systems, military communications, electronic warfare, avionics, C4I systems, electro-optics, and upgrades for weapon systems.The order book stood at Rs. 71,650 crore as of April 1, 2025.
BEL has also diversified into non-defense sectors such as homeland security, smart cities, e-governance, cyber security, solar energy, satellite integration, railways and metro solutions, airport systems, and medical electronics. Its product range includes Electronic Voting Machines (EVMs), VVPATs, traffic management systems, and energy storage products, demonstrating its reach in civilian applications as well.
The company is recognized for its robust R&D capabilities, strategic partnerships with DRDO and other agencies, and a strong export presence across Europe, Asia, Africa, North America, and the Middle East. BEL’s consistent financial performance, extensive product portfolio, and commitment to innovation have secured its position as a key player in both India’s defense modernization and the broader electronics sector.
The company’s total revenue rose by 6.3 percent from Rs. 8,789.51 crore to Rs. 9,344.23 crore in Q4FY24-25. Meanwhile, Net Profit rose from Rs. 1,797.11 crore to Rs. 2,127.04 crore during the same period.
The company has a P/E ratio of 53.01, which is lower than the industry average of 87.25, and it is debt-free. Over the last three years, it has maintained a strong average ROE of 16.20 percent and an average ROCE of 19.86 percent. Additionally, the company has achieved an average net profit growth of 18.75 percent over the past three years, reflecting consistent financial performance.
Written by Sridhar J
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