Bharat Electronics: A Robust Growth Story with Safe Valuation for Shareholders
Bharat Electronics Limited (BEL) is a leading defence electronics manufacturer in India, specializing in advanced radars, communication systems, and missile equipment for the armed forces. In FY25, 74% of revenue came from homegrown products, highlighting strong progress in indigenization. As of October 2025, BEL held an order book worth ₹75,600 crore. The company projects order inflows of ₹57,000 crore in FY26, which would take its order book close to ₹1.3 trillion, ensuring multi-year revenue visibility.
For the first half of FY26, BEL reported revenue of over ₹10,200 crore, up nearly 16% over last year. Operating margins remained healthy, and profit after tax jumped over 20% year-over-year, reflecting robust execution and cost efficiency. Order inflows have continued at a strong pace, setting the stage for sustained future growth.
To decrease dependence on defence, BEL is rapidly expanding into new areas. The share of non-defence revenue is targeted to rise from less than 6% in FY25 to nearly 20% in FY26, including export markets in Southeast Asia, Europe, and Africa. This diversification cushions earnings and augments future growth prospects.
Despite strong financials, BEL’s shares trade at a P/E of about 54, a clear discount to the industry average of 67. This suggests BEL is still attractively valued, despite the recent rally in PSU stocks. The business benefits from stable cash flows, a growing order book, and government support for self-reliance in defence technology.
For shareholders,