The shares of the Small-Cap company, specializing in designing, manufacturing, and supplying advanced electronic products and systems for both defence and non-defence sectors, are in focus as the Indian Army issued a tender for Anant Shastra missile systems worth Rs. 30,000 Crores to boost air defence near China and Pakistan.
With a market capitalization of Rs. 2,94,730.28 Crores on Monday, the shares of Bharat Electronics Ltd rose by 3.1 percent after making a high of Rs. 408.25 compared to its previous closing price of Rs. 395.90.
What Happened
Bharat Electronics Ltd, engaged in designing, manufacturing, and supplying advanced electronic products and systems for both defense and non-defense sectors, is in focus after the Indian Army issued a Rs 30,000 crore tender for procurement of regiments of the ‘Anant Shastra’ surface-to-air missile (SAM) system, aimed at boosting air defence along the borders with Pakistan and China, according to an ANI report. The tender has been given to Bharat Electronics Limited (BEL), which will manufacture the system, while Bharat Dynamics Limited (BDL) will assist in co-production.
‘Anant Shastra’, earlier known as the Quick Reaction Surface-to-Air Missile (QRSAM), was developed by DRDO. It is a mobile, all-weather system capable of detecting and destroying threats like aircraft, helicopters, drones, rockets, and missiles from over 30 km away.
This procurement was approved by the Defence Acquisition Council after “Operation Sindoor” in May. The system can operate while moving and will work alongside the Indian Army and Air Force’s existing missile systems like MRSAM and Akash.
This Rs.30,000 crore project highlights the Army’s focus on using more indigenous defence systems, with Army Chief General Upendra Dwivedi stressing the importance of locally developed technology for national security.
Financials & Others
The company’s revenue rose by 4.62 percent from Rs. 4,244 crore to Rs. 4,440 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 791 crore to Rs. 969 crore during the same period.
The company shows strong financial performance with a Return on Capital Employed (ROCE) of 38.9% and Return on Equity (ROE) of 29.2%. It has delivered a solid profit growth of 23.8% CAGR over the last 5 years, and maintains a 3-year average ROE of 26.4%.
Additionally, the company has been consistent with shareholder returns, maintaining a healthy dividend payout ratio of 39.1%. Its stock trades at a P/E of 53.8, which is lower than the industry average of 70.4.
As of July 1, 2025, the company’s order book stands at Rs. 74,859 crore, with an additional Rs. 2,600 crore in orders received after that, including a recent Rs. 500+ crore deal. For FY26, it expects over Rs. 27,000 crore in new orders (excluding QRSAM), supported by emergency procurement orders.
The company has guided for over 15% revenue growth in FY26 and is internally targeting more than 17.5%, though it acknowledges that sustaining 16% growth over the next 3–4 years may be challenging. It also aims to maintain a strong EBITDA margin of 27% in FY26, despite already outperforming in Q1.
The management had earlier stated that the Quick Reaction Surface to Air Missile (QRSAM) program received Defence Acquisition Council (DAC) approval on July 3, 2025, and the Request for Proposal (RFP) is currently awaited. They are confident of securing the order by Q4 FY26 (February/March), with the project size estimated between Rs 30,000 and Rs. 40,000 crore.
Bharat Electronics Limited (BEL) is a leading Indian state-owned defence and aerospace company under the Ministry of Defence. It specializes in the design, development, and manufacturing of advanced electronic products and systems for the Indian Armed Forces. It plays a key role in projects related to radars, communication systems, electronic warfare, and missile systems, and is a crucial player in India’s push for defence indigenisation and self-reliance.
Written by Sridhar J
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