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BEML Limited increased its R&D spending by 150% YoY

ICICIdirect Research 07 Jul 2026 DISCLAIMER

News: BEML Limited increased its R&D spending by 150% YoY to ₹251 crore in FY26, raising R&D intensity to 6.25% of revenue from 2.57% in FY25. The company has restructured its innovation ecosystem into a four-tier R&D framework and plans to sustain R&D investment at 6–7% of revenue over the next five years. BEML is targeting the development of 35–40 indigenous products across rail, defence, mining, construction and future mobility, focusing on technologies such as AI, robotics, hydrogen propulsion, autonomous systems and advanced manufacturing. The company also highlighted its indigenous B-28 high-speed train programme and plans to bid for Mumbai Railway Vikas Corporation's ₹30,000–35,000 crore suburban coach tender.

View: The significant increase in R&D investment reflects BEML's strategic shift from a manufacturing-led company to a technology-driven engineering player. Strengthening indigenous capabilities in rolling stock, defence and next-generation mobility aligns well with the government's import substitution and railway modernisation initiatives, which could enhance BEML's long-term competitiveness, order pipeline and margin profile.

Impact: Positive

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