Mumbai: Bharat Electronics Limited (BEL) reported an 8.2 percent year-on-year rise in consolidated net profit to Rs 1,048 crore for the quarter ended 30 June 2026. The Navratna defence public sector company had posted a profit of Rs 969 crore in the same quarter last year.
Revenue from operations increased 25.3 percent to Rs 5,533 crore in Q1 FY27, compared with Rs 4,417 crore in Q1 FY26. The growth reflected steady execution of defence and electronics orders during the quarter.
Sequential Decline
Despite the yearly growth, BEL’s performance weakened compared with the March quarter. Net profit fell 52.4 percent from Rs 2,203 crore in Q4 FY26, while revenue declined 45.6 percent from Rs 10,177 crore.
The sequential fall followed a strong March quarter, when defence companies usually complete and book a larger share of annual orders.
Operating Performance
BEL’s earnings before interest, tax, depreciation and amortisation, or EBITDA, rose nearly 12 percent year-on-year to Rs 1,389 crore from Rs 1,240 crore.
However, the EBITDA margin narrowed to 25.11 percent from 28 percent in the corresponding quarter last year. This means operating profit grew more slowly than revenue during the period.
Strong Order Book
The company said its order book stood at Rs 72,258 crore as of 1 July 2026. The large backlog offers strong revenue visibility and supports business growth over the coming quarters.
BEL secured orders worth Rs 572 crore in July for communication equipment, avionics, encryptors, tank sub-systems, electronic voting machines, batteries, upgrades, spares and related services.
In late June, it received another order worth Rs 1,081 crore covering communication equipment, radars, CBRN protection systems, seekers, avionics, upgrades, spares and services. It had also won defence orders worth Rs 608 crore in May.
Growth Outlook
BEL remains supported by India’s rising defence spending and demand for locally manufactured equipment. Possible defence exports, including talks around supplying major Indian systems to the UAE, could also create fresh opportunities for domestic manufacturers.
However, future growth will depend on timely order execution, new contracts and stable operating margins going forward.
Disclaimer: This article is based on company filings and is for information only, not investment advice or a stock recommendation.
