The shares of the aerospace and defence electronics manufacturer gained up to 1 percent after the company bagged a prestigious work order from the Indian Air Force worth Rs 593.22 crore.
Price Movement
With a market capitalization of Rs 2.08 lakh crore, the shares of Bharat Electronics Ltd were trading at Rs 285.00 per share, increasing around 0.92 percent as compared to the previous closing price of Rs 282.40 apiece.
Reason for rise
The shares of Bharat Electronics Ltd have seen positive movement after signing a contract with the Indian Air Force valued at Rs 593.22 Crores (excluding taxes) for providing maintenance services for the Akash Missile System, which was supplied by BEL.
Financial Performance
The company’s Q3 FY25 turnover rose 23.41 percent to Rs 14,174 crores. Profit before tax surged 43.86 percent to Rs 4,242 crores, while profit after tax grew 42.34 percent to Rs 3,183 crores. EBITDA margin improved to 28.07 percent, and EPS increased to Rs 4.36 from Rs 3.06.
Order Book
The company’s order book stands at Rs 71,100 crores as of Jan 1, 2025. It targets Rs 25,000 crores in order to inflows for FY’25, with Rs 11,000 crores secured so far. Management remains confident, citing upcoming project finalizations in the next two months.
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Key Projects and Updates
The company is finalizing contracts for major projects, including Ashwini Radar, Electronic Warfare for MI-17, HimShakti Phase 4, and QRSAM. The Rs 25,000-₹30,000 crore QRSAM deal is expected in 6-8 months. MRSAM and MFSTAR orders worth Rs 14,000-₹15,000 crore are anticipated next fiscal year.
Margin Guidance
The company reported a gross margin of 44.5 percent, maintaining its guidance of 42 percent 44 percent. Management remains optimistic about sustaining margins, citing repeat orders and service contracts as key factors supporting stability and growth in profitability.
Future Outlook
BEL expects over 15% revenue growth for FY’25, with EBITDA margins of 23%-25%. Order inflows should exceed ₹25,000 crores, driven by ongoing projects and new contracts. Advancements in radar and electronic warfare systems will further strengthen its market position.
Company snapshot
Bharat Electronics Limited develops and provides electronic equipment and systems to both the defense and non-defense industries. Its defense products include navigation systems, communication systems, land-based radars, naval systems, and electronic warfare systems, among others.
Written by Abhishek Singh
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