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Defence Sector Q3FY26 Results: BEL, GRSE witnessed steady performance

ICICIdirect Research 30 Jan 2026 DISCLAIMER

Bharat Electronics (BEL) reported strong performance in Q3FY26 with 24% YoY revenue growth and 80 bps YoY improvement in EBITDA margin to 29.7%
For 9MFY26 also, revenue growth stands at ~19% YoY with EBITDA margin remained steady at 29%
This healthy operational performance is largely backed by steady execution and increase in localization of raw materials & components
Order inflow has reached Rs 19300 crore this year with total backlog standing at ~Rs 74000 crore as of Dec-25
Management maintained its guidance of atleast Rs 27000 crore of inflows for full year. Moreover, the large contract of QRSAM (worth Rs 30000 crore) also has a high chance of getting awarded by March-26. In the coming years, also, management sees Rs 25000+ worth of contracts annually considering the strong demand momentum in defence electronics. This gives strong growth visibility for BEL in the coming years
In terms of revenue growth and margins also, the company sees 15%+ revenue growth every year and EBITDA margin sustaining at 27%+ with increasing localization being key driver for gradual improvement in margins in coming years
We remain positive on BEL with a target price of Rs 530

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