Bharat Electronics Ltd (BEL), a major supplier of electronic systems to India’s defence sector, reported strong growth for Q2 FY26, driven by execution of its healthy order book.
Financial Highlights
- Revenues grew 25.78% year on year to ₹5,792 crore versus ₹4,605 crore in Q2 FY25.
- Total expenses rose 27.16% to ₹4,218 crore from ₹3,317 crore, mainly on higher material and employee costs.
- Consolidated net profit increased 17.75% to ₹1,287 crore from ₹1,093 crore.
- Earnings per share (EPS) rose 18.12% to ₹1.76 from ₹1.49.
- EBITDA rose 21.58% to ₹1,702 crore, with margin coming in at 29.38% (vs 30.4% last year).
- Order book stood at ₹74,453 crore as of October 1, 2025.
Performance Drivers and Outlook
- The quarter saw excellent revenue execution driven by key defence contracts and project deliveries.
- Operating margins remained healthy despite a slight contraction from last year, due mainly to the product mix and cost increases.
- BEL continues to benefit from a robust project pipeline, new defence electronics programs, and the government’s thrust on indigenization.
- The company’s transformation towards next-generation and high-margin defence platforms is expected to further strengthen its growth outlook.
Market Response
BEL shares gained over 4% post-results as the company beat analyst estimates on both profits and revenues, with strong positive commentary on future order inflows.
BEL’s Q2 FY26 results underscore its market leadership in Indian defence electronics, with sustained profit and revenue momentum backed by a strong order book and sector tailwinds.
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