For BEL, consistent growth is a key ask now
Live MintDefence public sector undertaking Bharat Electronics Ltd showcased an impressive performance in the June quarter with crucial parameters better than the Street’s estimates. This is driven by factors including execution of base orders mainly received as part of import substitute in the past three years, cost savings via higher outsourcing from local vendors and better operating leverage. For now, a comforting factor is that BEL’s huge order backlog of ₹76,700 crore, which is about 3.7 times trailing 12 months revenue, aids revenue visibility. In FY26, order inflows are expected to be worth ₹50,000 crore, led by strong base orders, and quick reaction surface-to-air missile order. “We await large ticket-size orders, better execution rate/margin visibility over the next few quarters for the stock to re-rate hereon," said a Nuvama Research report dated 29 July.
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