Synopsis:
BEML stock is in focus after management slashed its FY26 export revenue guidance from 10% to just 3-4%, citing weak Q1 performance and slower overseas demand recovery. Despite this, the company expects 20% overall revenue growth, backed by a strong order book and supply chain improvements from Q3.
The share of this leading defence PSU stock is in focus after the management laid out certain headwinds in the future. In this article, we will dive more into the details of it.
With a market capitalization of Rs 16,949 crore, the shares of BEML Ltd are currently trading at Rs 4,070 per share, representing a decline of 17 percent from its 52-week high of Rs 4,874.85 per share. Over the past five years, the stock has delivered a robust return of 483 percent.
BEML’s management has highlighted that their main focus for FY26 is to enhance working capital while aiming for a 20 percent revenue growth, which they believe will be supported by strong performance in the upcoming quarters.
They expect Q2 to deliver improved results, and from Q3 onwards, they anticipate a boost from more stable supply chains. While exports were sluggish in Q1, they project a recovery to around 3-4 percent in Q2. However, the company has lowered its full-year export revenue contribution forecast to just 3-4 percent, a significant drop from the previous estimate of 10 percent.
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Financial Highlights
BEML’s revenue for Q1 FY26 came in at Rs 634 crore, which remained flat from Rs 634 crore in the same quarter last year. However, on a sequential basis, revenue declined by 62 percent from Rs 1,653 crore in Q4 FY25.
Coming to its profitability, the company reported a net loss of Rs 64 crore in Q1 FY26 as compared to a loss of Rs 70 crore in Q1 FY25. However, on a QoQ basis, it recorded a sharp turnaround from a profit of Rs 288 crore.
As of FY25, BEML derived 54 percent of its revenue from its Mining and Construction segment, followed by Defence and Aerospace with 27 percent, and the rest 19 percent is derived from its Rail and Metro segment.
As per the latest filing (June 2025), BEML holds a strong order book of Rs 14,429 crore. In Q1 FY26, it secured new orders worth Rs 435 crore and executed orders totaling Rs 615 crore during the period.
The company has delivered an ROE and ROCE of 10.53 percent and 15.65 percent respectively, and is currently trading at a high P/E of 56.77x as compared to its industry average of 40x.
BEML Limited is a key player in India, catering to various sectors like mining, construction, rail, metro, power, defense, and aerospace. They provide an impressive lineup of machinery, including excavators, bulldozers, dump trucks, bridge systems, recovery vehicles, metro cars, passenger coaches, and track equipment. Plus, they also export their products to international markets!
Written by Satyajeet Mukherjee
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