BEML Shares Price Fall Over 6% After Q2FY26 Profit Declines and Order Book Stagnates

November 6, 2025, Bangalore: BEML Limited share price (NSE: BEML, BSE: 500048) fell over 6% in Thursday trading following the company’s Q2FY26 results, which showed a decline in quarterly profit and a largely flat order book for the September quarter.

BEML Limited was incorporated in 1964 and is engaged in the manufacture of heavy earth-moving equipment, defense vehicles, and rail coaches. The company operates in three segments: Defence & Aerospace, Mining & Construction, and Rail & Metro. The company’s stock is listed on both the NSE and BSE. It is a constituent of the Nifty Smallcap 250 ‍‌‍‍‌‍‌‍‍‌Index.

Earnings Under Pressure

BEML’s consolidated net profit for the quarter ended September 30, 2025, was down 6.4% year-on-year at ₹48.03 crores, as compared to ₹51.03 crores in the same period last year. The company’s revenue from operations slipped 2.4% YoY to ₹839.09 crore from ₹859.84 crore, while total income dropped 3.3% to ₹846.13 crore. The reason for the shortfall is mainly higher input costs and a slow execution rate of projects, especially in the Rail & Metro segment. However, sequentially, the revenue was up 32% from Q1FY26 due to better deliveries in the Defence and Mining & Construction verticals. The earnings per share were ₹11.53 as compared to ₹12.25 in the corresponding quarter a year ago.

Order Book and Operations

As of September 30, 2025, the total order book of the company was ₹16,342 crore, which was almost the same as that of a year ago, i.e., ₹16,704 crore. Out of this, ₹4,217 crore is doable within this fiscal year. Net working capital increased marginally to ₹2,926 crore from ₹2,839 crore a year ago, while borrowings were ₹651 crore as against ₹638 crore during the same period last year. Trade receivables stood at ₹1,439 crore in comparison to ₹1,452 crore previously. The slight slowdown in the pace of execution is due to the cautious approach towards rail projects; however, the inflows from Mining & Construction have eased the situation to some extent.

Management and Review Notes

Chairman and Managing Director Shantanu Roy said the financial results were approved at the 417th board meeting held on November 5, 2025. The statutory auditors G. Natesan & Co. gave an unqualified limited review report but drew attention to BEML’s exposure to the MAMC consortium and pointed out that the related liquidation proceedings are still at the initial stages.

Stock Market Reaction

At 1:01 pm IST, the stock of BEML was trading at ₹2,001.10, down 6.94%. The stock saw heavy selling. Delivery volume stood at 46.67%. Sell orders were almost three times the buy bids, indicating profit-booking after its recent rally. The stock traded between ₹1,175 and ₹2,437 during the past 52 weeks. The market capitalization of the company stood at ₹16,901 crore with a trailing P/E ratio of 59.93x, and the VWAP of the session stood at ₹2,054.74.

REF:https://nsearchives.nseindia.com/corporate/BEML_05112025133010_Outcome_Meeting_signed.pdf

https://nsearchives.nseindia.com/corporate/BEML_05112025140124_UPSI_Cover_signed.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations