Bharat Electronics reported strong second-quarter earnings, featuring a 27% increase in sales to Rs 7,330 crore that beat market expectations by 13%. Standalone net profit climbed nearly 20% alongside steady growth in operating EBITDA. The firm reaffirmed its FY27 targets, supported by an order book heavily tilted toward domestic defence programmes. To sustain this momentum, the company plans to deploy over Rs 2,200 crore toward research and development alongside significant capital expenditure.
Key points
The total order book reached Rs 68,700 crore, with defence programmes accounting for appr…: The total order book reached Rs 68,700 crore, with defence programmes accounting for approximately 90% of the volume.
Management reaffirmed its FY27 financial targets, aiming for 15% revenue growth and over…: Management reaffirmed its FY27 financial targets, aiming for 15% revenue growth and over Rs 55,000 crore in order inflows.
Analysts flagged execution risks, including broader spending slowdowns and a delayed Rs 3…: Analysts flagged execution risks, including broader spending slowdowns and a delayed Rs 30,000 crore QRSAM contract.
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The upgrades come after the company’s analyst call on Tuesday, while the results were declared last week. Bharat Electronics reiterated its FY27 guidance, targeting 15% revenue growth, an EBITDA margin of 28% and order inflows of more than Rs 55,000 crore, including the QRSAM programme. The company plans to spend over Rs 2,200 crore on research and development and Rs 1,200 crore on capital expenditure during the year. It also expects to maintain a business mix of 90% defence and 10% non-defence.
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Jefferies, with a target price of Rs 490, forecasts an upside of 30% from current levels. Management reaffirmed its confidence in achieving revenue growth of more than 15% in FY27, while indicating scope for an upside surprise given the 26% year-on-year growth recorded in the first half. Jefferies has largely retained its earnings per share estimates for FY28-FY30. The brokerage noted that indigenisation and economies of scale drove margin improvement in FY25 and FY26, and expects these factors to continue supporting margins over the medium term.Elara Capital has upgraded Bharat Electronics to…
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