BEML Ltd

- BEML plans to fund the INR 1,500 crore capex for the new Bhopal rolling stock plant primarily through long-term **debt financing**. - The company has not raised any long-term debt so far but intends to do so in phases for this project. - Financial closure for the first phase of debt financing is expected within a couple of months. - The decision to go with debt is driven by lower cost compared to equity. - No mention of any new **equity fundraising** was made in the transcript. - Existing capital expenditure and expansion will not be funded through equity but through debt to optimize cost of capital.

- BEML has approved a capital investment of INR 1,500 crores for a new rolling stock manufacturing plant in Bhopal. - The investment will be executed in two phases: Phase 1 involves around INR 900 crores and Phase 2 around INR 600 crores (including GST). - The Bhopal facility will add capacity of 300 additional coaches per annum in Phase 1, with a total capacity of 800 coaches per annum after Phase 2. - Civil works for the Bhopal plant have commenced, with boundary wall nearly 50% complete. - Financing for the Bhopal project will be through long-term debt, with financial closure expected in the next couple of months. - BEML is also investing in new products like Tunnel Boring Machines and maritime cranes, targeting revenues in 2.5 to 3+ years timeframe. - For maritime cranes, a greenfield project with a waterfront area of 100-150 acres is being planned, with expected revenue potential of INR 5,000 crores over 5 years.

- Current order book stands at INR 16,300 crores, with 68% from Rail and Metro, 25% Defense, and 7% Mining & Construction. - Expected order book to cross INR 20,000 crores in the current financial year. - Revenue from sales grew 24% year-on-year in Q3 FY '26, with anticipated growth aligning with current guidance. - Rolling stock capacity expansion underway: Phase 1 (INR 900 crores) and Phase 2 (INR 600 crores) for Bhopal plant to add 300 to 800 coaches annually post-completion. - Plans to deliver 8-9 trains in the current financial year; 33 more train sets expected to be delivered starting FY '26-'27 to FY '27-'28. - Chennai Metro project to commence deliveries from December 2026 (FY '26-'27). - New product lines like Tunnel Boring Machines and maritime cranes expected to contribute revenue in 2.5 to 3 years horizon. - Overall focus on sustaining long-term growth via diversification and capacity enhancement.

- BEML expects to achieve a revenue growth of 15% to 20% in Q4 FY26, aiming for the higher end of this range but avoids precise speculation. - The company’s current order book stands at INR16,300 crores, expected to cross INR20,000 crores within the financial year, supporting growth. - Cost and profitability were impacted in Q3 due to an INR80 crore provision against a metro project restart, expected to reverse positively in 16–18 months with favorable exchange rates. - Inventory reduction by 20% is targeted this year to improve working capital and operational efficiency. - Long-term growth is expected from expansion in rolling stock capacity (300 additional coaches per annum in phase 1), new product ventures like Tunnel Boring Machines (2.5-year gestation) and maritime cranes (potential INR5,000 crore revenue in 3–5 years). - The management urges investors to take a long-term view, with execution of a strong order book expected to cross existing performance barriers.

- Current order book stands at INR 16,300 crores: - 68% from Rail and Metro - 25% from Defense - 7% from Mining and Construction - Expected to cross INR 20,000 crores order book in the current financial year. - Rail & Metro orders include: - 63 train sets (completed) - 33 Mumbai Metro train sets pending, with delivery starting from FY '26-'27 or '27-'28 - Chennai Metro first prototype due December 2026, with production starting FY '26-'27 - Bangalore Metro underway with NCNC trials lasting 1-1.5 years - MRVC project for 2,856 AC EMU cars in pipeline - Export metro rolling stock orders expected in 2-3 months - Defense: - Pipeline of high-mobility vehicles worth ~INR 1,000 crores - Combat engineering bridging systems requiring 45-47 units (~INR 1,000 crores) - Orders for trawl and self-propelled mine barrier expected in FY '26-'27 - 194 ARVs bid in progress - Mining: - Currently patchy order flow, expected improvement in next financial year - Anticipates orders from Coal India, Singareni Collieries, Manganese Ore India, SAIL, NTPC, and MDOs - Export orders from GCC/Middle East expected soon