The shares of the aerospace and defence electronics manufacturer gained up to 5.4 percent after the company bagged a prestigious work order for the Electronic Warfare (EW) Suite worth Rs 2,210 crore.
Price Movement
With a market capitalization of Rs 2.05 lakh crore, the shares of Bharat Electronics Ltd were trading at Rs 280.85 per share, increasing around 2.82 percent as compared to the previous closing price of Rs 273.15 apiece.
Reason for rise
Bharat Electronics Ltd shares rose after it signed a Rs 2,210 crore contract with the Ministry of Defence to supply Electronic Warfare (EW) Suites for Mi-17 V5 helicopters of the Indian Air Force. The systems are indigenously designed by CASDIC, DRDO, and manufactured by BEL, showcasing a strong push for domestic defense capabilities.
Financial Performance
The company reported a zoom of 39 percent YoY in revenue from operations from Rs 4,162 crore in Q3FY24 to Rs 5,771 crore in Q3FY25. Their Net profits also jumped by 52 percent YoY from Rs 860 Crore to Rs 1,312 crore over the same period.
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Order Book
The company’s order book stands at Rs 71,100 crores as of Jan 1, 2025. It targets Rs 25,000 crores in order to inflows for FY’25, with Rs 11,000 crores secured so far. Management remains confident, citing upcoming project finalizations in the next two months.
Key Projects and Updates
The company is finalizing contracts for major projects, including Ashwini Radar, Electronic Warfare for MI-17, HimShakti Phase 4, and QRSAM. The Rs 25,000-30,000 crore QRSAM deal is expected in 6-8 months. MRSAM and MFSTAR orders worth Rs 14,000-15,000 crore are anticipated next fiscal year.
Margin Guidance
The company reported a gross margin of 44.5 percent, maintaining its guidance of 42 percent- 44 percent. Management remains optimistic about sustaining margins, citing repeat orders and service contracts as key factors supporting stability and growth in profitability.
Future Outlook
BEL expects over 15 percent revenue growth for FY’25, with EBITDA margins of 23 percent-25 percent. Order inflows should exceed Rs 25,000 crores, driven by ongoing projects and new contracts. Advancements in radar and electronic warfare systems will further strengthen its market position.
Company snapshot
Bharat Electronics Limited develops and provides electronic equipment and systems to both the defense and non-defense industries. Its defense products include navigation systems, communication systems, land-based radars, naval systems, and electronic warfare systems, among others.
Written by Abhishek Singh
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