Bharat Electronics LtdQ1 FY27
Bharat Electronics Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹410P/E: 49.2Market Cap: ₹3.0L CrSector: Aerospace & Defense
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →Bharat Electronics Limited (BEL) expects a revenue growth of 15% for the financial year 2026-27.
- →The company met its internal expectations in Q1 and is confident of achieving the guidance for the year.
- →Order inflow is anticipated to be more than INR 20,000 crores, including significant programs like QRSAM.
- →Planned R&D investment is over INR 2,200 crores and capital expenditure exceeds INR 1,200 crores.
- →BEL aims to maintain an EBITDA margin between 21% to 23%.
- →Export revenue targets include gradual increase, aiming to achieve 10% of total revenues through exports within five years.
- →Major programs like Shatrughat, Samaghat (~INR 9,000 crores), Shakti Phase 4 (~INR 2,000 crores), and HAMMER (~INR 2,500 crores) expected to contribute significantly.
- →Other key projects like Akash Army, D-29 EW systems, and LCA LRUs also expected to drive revenue growth.
- →Overall, BEL plans steady increases backed by strong order book and new program executions.
Margin guidance
Category 3- →Bharat Electronics Limited (BEL) projects a revenue growth of around 15% for FY27, with the possibility of slightly exceeding this target based on Q1 performance (25.27% growth achieved).
- →EBITDA margin guidance is maintained at 21% to 23%, with confidence to cross 28% on a yearly basis.
- →Profit before tax and profit after tax saw growths of 8.81% and 8.17%, respectively, in Q1 FY27.
- →Order inflow target for FY27 is more than INR 20,000 crores, including significant programs like QRSAM and others.
- →BEL aims to increase export revenues aiming for 10% of total revenues over the next five years, bolstering future earnings.
- →R&D investment is planned above INR 2,200 crores to sustain technology edge and enhance margins.
- →Capex planned at over INR 1,200 crores to support expansion and new program executions.
- →Earnings per share (EPS) increased to INR 1.43 in Q1 FY27, indicating positive profit growth trajectory.
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Fundraise plans
- →Bharat Electronics Limited did not explicitly mention any current or future plans for fundraising through debt or equity in the provided transcript.
- →The focus of the discussion was primarily on order inflows, revenue growth, R&D investments, capex, and margins.
- →There was no reference to raising capital or issuing new shares or debt instruments during the Q1 FY27 earnings call.
- →The company’s financial strategy seems centered on internal cash flows and operational execution to meet its guidance for the financial year.
- →Any future fundraising plans, if any, were not disclosed in this call or the included pages.
Order book
Yes- →Current order book stands around INR 72,000 crores.
- →Top 7-8 major projects constitute about INR 20,000 crores of this, including Fuzes, LRSAM, LCA LRUs, BMP-2 upgrade, Ashwini Radar, EW suite for Mi-17 V5, MPR Arudhra.
- →Total expected order inflow for the financial year is INR 55,000+ crores including QRSAM.
- →Major upcoming orders include Shatrughat, Samaghat (expected in 3-6 months), NGC and P75I naval programs (high probability), HAMMER project and Shakti Phase 4.
- →QRSAM order is delayed and expected by Q1/Q2 FY27, awaiting CCS approval.
- →Export order book is approximately USD 465 million, with a target to achieve USD 300 million orders this year.
- →BEL aims for 10% revenue from exports in next five years.
Capex plans
Yes- →Bharat Electronics Limited (BEL) has planned a capex of more than INR 1,200 crores for the current financial year.
- →This capex is primarily for production-related infrastructure and capacity enhancement.
- →Indigenization efforts are funded separately through the R&D budget, not from capex.
- →R&D budget for this year is allocated at more than INR 2,200 crores, focusing on niche technology development, indigenization, and collaborative R&D.
- →BEL aims for zero import of any subsystem or module (except components like semiconductors) within the next 5 years, supported by its upcoming formal indigenization policy.
- →Strategic investments include partnering with MSMEs and startups to support the indigenization drive and innovation.
- →BEL continues to invest strategically in large defense projects such as QRSAM, LRSAM, and other key missile and naval programs.
How does Bharat Electronics Ltd rank vs peers in Aerospace & Defense?
Pro feature1Bharat Electronics Ltd
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