Synopsis:
Shares of BEL soar upon receiving Rs.633 Crore order from Cochin Shipyard Limited for the supply of items required for various sensors, weapon equipment, and more, increasing its order book and revenue outlook.
This Navratna defence stock which manufactures and supplies electronic equipment and systems to the defence sector and others, is in the limelight as it bagged an order worth Rs. 633 Crores from Cochin Shipyard Limited
With the market cap of Rs 3,08,290 crore, shares of Bharat Electronics Ltd have made a high of Rs 422.5, which is around 1 percent jump in today’s trading session. It has given a closing at Rs 418.5 .The share is near to its 52-week high of Rs 436 and is trading just 3 percent below its high. It has delivered a 300 percent return on a 3 year basis and 1200 percent on a 5 year basis.
About the order
Cochin Shipyard Limited has placed an order with Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, for Rs. 633 crore. The order is for the provision of parts like the fire control system, communication equipment, weaponry, and other sensors.
Financials and Outlook
Bharat Electronics Ltd has made sales of Rs 4,440 crore in Q1 FY26, compared to Rs 4,244 crore in Q1 FY25 which is a YOY Sales Growth of about 4.62 percent. However ,the net profit has grown by 23 percent as profits in Q1 FY25 stood at Rs 791 crore, which increased to Rs 969 crore in Q1FY26
One of the challenges faced by the company would be the increase in working capital days from 18 days in FY24 to 85 days in FY25 but the company is almost debt-free and has given a good profit growth of 23.8 percent CAGR over last 5 years
For FY26 BEL has announced a capex worth Rs 1,000 plus crore for significant plant expansions, new-gen test instruments etc. The company also claimed revenue miss due to Supply Chain & Geopolitical Risks which includes Q1 Revenue Miss of Rs 200 crore delayed due to “geopolitical situation, especially Israel-Iran conflict,” impacting component supplies from Israel.
The order book as of July 1, 2025 is Rs 74,859 crore and an additional Rs 2,600 crore orders post July 1 are recorded along with the recent one, which is worth Rs 500 crore plus . The order inflow for FY26 guidance estimates Rs 27,000 plus orders, which the company says will exceed with the help of emergency procurement (EP) orders.
Written by Leon Mendonca
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