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Bharat Electronics: FY26 numbers in-line; outlook intact as heavy order inflows guided

ICICIdirect Research 22 May 2026 DISCLAIMER

Revenue increased by ~16% YoY for the year, driven by healthy execution across key defence electronics programs and in-line with expectations and provisional numbers while EBITDA margin remained steady at 29%
Going forward, management has maintained its FY27E guidance of 15%+ revenue growth, supported by a strong order book execution, sustained demand across defence electronics programs. The company has also guided for an EBITDA margin of 28%+ driven by higher indigenisation of products and improving pricing power over time
Order backlog stands strong at ₹ 73,882 crore (2.8x TTM revenue) giving healthy growth visibility. Order intake during FY26 stood at ~Rs 30,000 crore
Order inflow guidance for FY27E was also reiterated at ₹ 55,000+ crore including the QRSAM contract (values ~₹ 30000 crore) which is also likely to be placed by Q1FY27E
Longer term revenue visibility also remains strong, driven by robust order inflows over the next 12–24 months and rising demand for defence electronics across various upcoming multiple large-scale platforms
We expect revenue & PAT CAGR of ~17% and ~19% respectively during FY26-28E. We maintain Buy rating on BEL with a target price of ₹ 530

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