Bharat Electronics (BEL) – Latest Fundamental Update

Bharat Electronics (BEL) continues to have a strong long-term fundamental story, supported by India’s defence-indigenisation and rising domestic defence procurement. In Q1 FY27, revenue from operations increased 25.27% YoY to ₹5,533 crore, while PAT rose 8.17% to ₹1,048 crore. The company entered FY27 with a massive ₹72,258 crore order book, providing strong multi-year revenue visibility. A major recent positive is the ₹1.1 lakh crore defence procurement approval by the Defence Acquisition Council on September 7, with around 98% of procurement planned from Indian industry. This should create opportunities for domestic defence-electronics companies such as BEL across radars, electronic warfare, communication systems and missile-related electronics. BEL has also continued adding orders. In August, it announced ₹730 crore of additional orders, covering communication equipment, radars, avionics, tank subsystems, electro-optics, cybersecurity, jammers, batteries and other systems. Management has maintained its FY27 objective of more than 15% revenue growth and over 28% EBITDA margin, although Q1 margins were under pressure because of the execution/product mix.