A leading manufacturer in rail and defence equipment anticipates substantial growth. Its order book is projected to double significantly, driven by ambitious expansion into driverless metro systems. Notably, defence contracts are expected to contribute 20% of this increased order value, highlighting strategic diversification efforts.
BEML Limited’s stock, with a market capitalisation of Rs. 18,297 crores, rose to Rs. 4,475, hitting a high of up to 2.17 percent from its previous closing price of Rs. 4,380. However, the stock over the past year has given a negative return of 6.7 percent.
Management Outlook
Bharat Mobility Limited (BML) is undergoing a significant organisational transformation under the leadership of Chairman and MD Shantanu Roy. The company has adopted a Strategic Business Unit (SBU) structure, expanding from the current 12 SBUs and 2 Micro SBUs to 14 SBUs. This shift aims to improve operational focus, build a stronger leadership pipeline, and accelerate decision-making.
Management has set ambitious financial targets, aiming to increase EBITDA margins from the current 13.2% to around 14.5–14.7% in the near term, with a long-term goal of 20% over the next 4–5 years.
Key growth areas include the rail & metro and defence & aerospace sectors. Notably, defence now contributes 27% to the top line, marking a historic milestone. BEML is also making strides in metro technology, particularly with Unattended Train Operation (UTO) systems.
To support its growth vision, BML is expanding its order book, aiming to add over Rs. 14,000 crore in FY26 from its current order book of Rs. 14,610 Crores, with defence expected to comprise 20% of the total. A capex of Rs. 600 crore is planned for FY26, including a major Rs. 230–240 crore investment in a rolling stock facility in Bangalore.
The company is financially disciplined, operating without long-term debt and selectively using debt for strategic projects like the new Bhopal plant. Looking ahead, strong momentum is expected across defence, aerospace, and rail segments, with mining and construction continuing to perform steadily.
Q4 Financial Highlights
In Q4FY25, the company reported revenue of Rs. 1,653 crore, marking a growth of 9% YoY from Rs. 1,514 crore in Q4FY24 and a sharp 89% QoQ rise from Rs. 876 crore in Q3FY25. Despite a 3-year sales CAGR of -2%, the recent quarter reflects a strong recovery in topline performance.
Net profit for Q4FY25 stood at Rs. 288 crore, up 12% YoY from Rs. 257 crore and 1,100% higher than the Rs. 24 crore reported in Q3FY25. Over a three-year period, profit has grown at a CAGR of 32%, while return on equity (ROE) has improved at a 3-year CAGR of 9%, indicating steady value creation and improving profitability.
Written By Fazal Ul Vahab C H
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