Q4 Results: Bharat Electronics Declines Over 2% Despite Revenue Beat and Strong Outlook

Mumbai, May 20:Shares of Bharat Electronics Limited fell on Wednesday after investors booked profits following the company’s March-quarter results, despite the defence PSU reporting revenue and margins ahead of estimates.

The stock declined over 2% at Rs 412.6after the company reported a modest rise in quarterly profit, even as analysts highlighted strong operational performance and robust order execution.

Revenue Crosses Rs 10,000 Crore Mark

BEL reported a consolidated net profit of Rs 2,226 crore for the March quarter, up 5% from Rs 2,127 crore a year earlier. Revenue from operations rose 11% year-on-year to Rs 10,224 crore.

EBITDA for the quarter increased nearly 6%, while EBITDA margin came in at 29.1%, compared with 30.6% a year ago. Although margins softened on a yearly basis, they remained above Street expectations due to better execution and operating leverage.

Investors booked profits as the company exceeded estimates. Source: NSE

Brokerage firm Equirus Securities said BEL’s profit after tax was 22% above its estimates and marginally ahead of consensus expectations, while revenue also beat forecasts.

Higher Expenses Weigh on Sentiment

Despite the earnings beat, investors appeared cautious due to rising costs and the stock’s sharp rally in recent months.

The stock has risen 13% over a year versus Nifty declining over 4% during the period. Source: NSE

BEL’s total expenses increased to Rs 7,417 crore during the quarter from Rs 6,477 crore a year ago, driven by higher material costs, employee expenses and project execution spending. Other expenses also rose sharply year-on-year.

The stock has been one of the strongest performers in the defence pack over the past year amid rising investor optimism around India’s defence manufacturing push and increasing localisation under the government’s “Atmanirbhar Bharat” initiative.

Strong Order Book Supports Outlook

For the full financial year FY26, BEL reported revenue of Rs 27,610 crore, up 16% year-on-year, while annual net profit rose 14% to Rs 6,062 crore.

The company’s order book stood at nearly Rs 74,000 crore at the start of FY27, providing strong revenue visibility over the coming years. Analysts expect BEL to remain a key beneficiary of higher domestic defence spending and accelerated procurement by the Indian armed forces.

BEL’s board also recommended a final dividend of Rs 0.55 per share for FY26, subject to shareholder approval.

Source:

• https://www.nseindia.com/get-quote/equity/BEL/Bharat-Electronics-Limited