Bharat Electronics Ltd. share price target

Strong medium-term opportunity pipeline extends growth beyond FY27E: Beyond the existing backlog, BEL remains well positioned to benefit from several large strategic defence programs, including QRSAM, NGC, P-75I, Next Generation Corvettes, Project Kusha, AMCA, HAMMER, Shatrughat & Samaghat and Shakti Phase-IV. Management also highlighted a USD 465 million export pipeline while targeting USD300 mn exports in FY27E and increasing exports to ~10% of revenues over the medium term, providing...

Bharat Electronics’ (BHE) 1QFY27 revenue/EBITDA/PAT came slightly lower than our estimates. Margin performance was hit by an adverse revenue mix.

Multiple strategic programs can extend the growth cycle beyond FY27: Beyond the current backlog, BEL appears well placed to benefit from a new wave of strategic defence programs. The company highlighted opportunities in Next Generation Corvettes, Shatrughat and Samaghat EW solutions, P-75I submarine electronics, HAMMER missile systems, Shakti Phase IV, MFR-X radar, AMCA and Project Kusha, all of which can support growth over the next few years. On P-75I, BEL expects to contribute 5060% of the electronics contribution, while AMCA is being...

Healthy order-book position with robust pipeline: BEL's order backlog stands at 73015 crore as of Dec-25 (2.8x TTM revenues), which provides healthy revenue growth visibility over the next 2-3 years considering the steady execution. Moreover, orders pipeline remains robust for BEL in defence electronic systems (including electronic warfare, radars, communication & control systems, navigation systems, avionics etc for various platforms), non-defence and exports. Management is confident in achieving their guidance of ~ 27000+ crore of order inflow in FY26E (~...

Bharat Electronics (BHE)’s 3QFY26 revenue/EBITDA/PAT exceeded our estimates, driven by strong execution and better-than-expected margins. Revenue growth was fueled by a strong order book, which stood at INR730b.

End-to-end defence electronics capabilities with deep institutional trust and long-term national relevance

of higher material costs and product mix. However, operating efficiencies cushioned the impact, limiting margin erosion to 90 bps, at 29.4%. strong earnings visibility for the next 3 years. product mix, rising indigenous content and cost optimisation. We forecast...

Favourable ecosystem for domestic defence industry: We believe that the defence electronics market in India is experiencing significant growth, driven by efforts to boost domestic production and reduce dependence on imports. As per the industry reports, defence electronics contribution increased to 30-35% in most platforms and is expected to increase further in the coming years, led by increasing required modernisation in platforms. With having strong capabilities in designing, developing & manufacturing a wide range of strategic electronic products/systems, we believe that BEL...

Bharat Electronics’ (BHE) 2QFY26 revenue/EBITDA/PAT exceeded our estimates, driven by strong execution and better-than-expected margins.

As per press reports, the Indian Army has issued a tender to Bharat Electronics (BHE) for the QRSAM project, also known as Anant Shastra, worth INR300b. The Indian Army will procure 5-6 regiments of the indigenously developed ‘Anant Shastra’ surface-to-air missile weapon systems and BHE will be the lead integrator.

BHE’s 1QFY26 PAT exceeded our estimate, driven by better-than-expected margins. Revenue growth was aided by a strong order book, though it was affected to some extent by geopolitical issues.

Strong operational performance surprised positively, as margins improved by 555 bps to 27.9%. Revenue growth was muted at 5%, owing to fluctuations in product delivery amid geopolitical tensions.

The management maintained their guidance of ~15% revenue growth with ~27% EBITDA margin and ~Rs270bn+ order intake (ex. QRSAM) in FY26. Bharat Electronics (BEL) reported a modest 5.2% YoY revenue growth, impacted by a revenue deferment of ~Rs2.0bn to the next quarter due to supply chain constraints. EBITDA margin expanded by 576bps YoY to 28.1%. Domestic demand remains strong, supported by a healthy tendering pipeline and a continued push for higher indigenization. Additionally, BEL stands to...

Indian defence forces are set to make emergency purchases worth Rs 40,000 crore to enhance combat readiness. The initiative focuses on acquiring key systems being prioritised under emergency powers, including surveillance drones, kamikaze drones, missiles, and various types of ammunition.

~Rs.19,400cr, and was marginally lower than initial guidance. For FY26, management guided revenue growth of 15% YoY, EBITDA margins of 27% with an order inflow guidance at Rs.27,000cr. BEL's margin guidance appears achievable, supported by rising indigenous...

We recommend a BUY rating on the stock with a TP of Rs 425/share, implying an upside of 10% from the CMP.

Bharat Electronics limited reported revenue growth from operations of 6.8% YoY to Rs 91,496 million on a consolidated basis in Q4 FY25 as compared to Rs 85,641 million in Q4 FY24.

Bharat Electronics’ (BEL) Q4FY25/FY25 performance was above our and consensus estimates. Guidance exceeded for both revenue growth and EBITDA margin.