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Informist, Wednesday, Jul. 30, 2025

 

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--Bharat Electronics: Expect large Quick Reaction SAM order Feb-Mar 
--CONTEXT: Bharat Electronics management's comments at post-earnings concall 
--Bharat Electronics:Developing new active electronically scanned array radar 
--Bharat Electronics: See more emergency orders from Indian military by Sept 
--Bharat Electronics: Expect to invest 6-7% of turnover in R&D 
--Bharat Electronics: Expect to invest INR 16 bln-INR 17 bln on R&D in FY26 
--Bharat Electronics: Created AI incubation centre for Indian Navy, Army 
--Bharat Electronics: Target 10% of total turnover from exports in next 5 yrs 
--Bharat Electronics: Planned FY26 order deliveries to realise 15% YoY growth 
--Bharat Electronics: Investing proactively in sonar technology 
--Bharat Electronics: Integrating sonar tech with large strategic platforms 
--Bharat Electronics: Expect big tender under Project Kusha in 3-4 yrs 
--Bharat Electronics: Developing advanced simulators for missile training 
--Bharat Electronics: Expect big orders for drones in next 2 yrs 
--Bharat Electronics: Drone, anti-drone warfare among new focus areas for co 
--Bharat Electronics: Targeting INR 10 bln capex in FY26 
--Bharat Electronics: Targeting $120 mln export orders in FY26
 

 

By Avishek Rakshit & Simran Rede

 

KOLKATA/MUMBAI – State-owned Bharat Electronics Ltd. plans to increase its current order book of INR 749 billion by at least 40% by March next year as it aims to bag a large order of Quick Reaction Surface to Air Missile valued at around INR 300 billion. At the same time, the company is working on several prototypes of warfare components to bag new deals in the days ahead.

 

Quick Reaction Surface to Air Missile or QRSAM, as it is commonly known in the defence sector, is an indigenously developed mobile, short-range, air defence system developed by the Defence Research and Development Organisation which is designed to protect ground forces from aerial threats like aircraft, helicopters, and drones. The system is designed for quick deployment and can engage multiple targets simultaneously.

 

"DAC (Defence Acquisition Council) approval was given on July 3 (for QRSAM). So, good progress has happened on that front. So, now only the RFP (request for proposal) has to be issued to us. We are confident to get this order by February-March. It may not slip to Q1 (Apr-Jun) of next (financial) year," Manoj Jain, chairman and managing director of Bharat Electronics, told investors in a post-earnings analyst call Wednesday.

 

The company had declared its results for the June quarter on Monday, posting nearly 25% on-year growth in net profit to INR 9.69 billion and beating the Street's estimate of around INR 9.00 billion.

 

However, the order book growth may exceed the projection of around INR 1.05 trillion by March as the company is making strides towards developing new products, orders from the Indian Army's emergency procurement system, and is also eyeing a substantial order from the Indian Navy's order placement of the EL/M-2248 Multi-Function Surveillance, Track and Guidance Radar with Indian shipbuilders.

 

The Multi-Function Surveillance, Track and Guidance Radar, or MF-STAR as is widely known, is an active electronically scanned array naval radar system developed by Israel Aerospace Industries' subsidiary, IAI Elta, to provide situational awareness and fire control for warships.

 

"Our shipbuilders have already got the order (for MF-STAR). So, we have already started discussing with them (shipbuilders) about the configuration, final specifications...We are hoping in next 3-6 months, we will get a considerable portion of subsystems order with us," Jain said.

 

The Navratna defence public sector enterprise is also developing a prototype of a new active electronically scanned array radar system developed by the Defence Research and Development Organisation for the Indian Air Force's Su-30MKI fighter jets. It's designed to replace the older Russian-made N011M Bars radar system.

 

Jain said Bharat Electronics views sonar technology as a good growth opportunity and is making proactive investments to develop the technology further and integrating it with large strategic platforms for products sold in India and abroad. It has already created an artificial intelligence incubation centre for the Indian Navy and Indian Army, where research on AI-driven Machine Learning is underway. The company sees a sizeable business opportunity in electronic and drone warfare in the years ahead which will use such technologies.

 

"Between 6-7% of our turnover, we want to invest on R&D (research and development)...Total R&D investments this (financial) year will be between INR 16 billion to INR 18 billion," Jain said, adding that the company is also working towards developing advanced simulators for missile training.

 

Drones and anti-drone warfare are another key focus area for the company for its future business plans, and it is working towards developing at least four types of drones. "We are confident by (financial) year end, at least one of the order (for drones) we may get and the next two to three years, definitely some big orders we will expect from that," Jain said.

 

Jain said Project Kusha, which is an indigenous multi-layered extended-range air defence system designed to counter various aerial threats like stealth fighters, drones, cruise missiles, and anti-ship ballistic missiles, is in the final stages of development now.

 

The project, which is intended to surpass the capabilities of the current Russian-made S-400 air defence system deployed in India, is marked as a cornerstone of India's air defence strategy and is spearheaded by the Defence Research and Development Organisation with an initial estimated cost of INR 217 billion. Bharat Electronics, which is eyeing to bag this order once it receives the necessary clearances, had laid a timeframe of 3–4 years for it to materialise.

 

Jain said the company is also hopeful of winning more orders from the Indian armed forces under the emergency procurement scheme by September and is targeting at least 15% top line growth in FY26. It is also aiming to bag $120 million export orders in the current financial year and hopes to take the contribution from export orders to its total sales to 10% from the current 4-5%. The top official said that the company has chalked out its delivery roadmap for FY26 which will provide the targeted 15% on year revenue growth and the company will invest INR 10 billion as capital expenditure in FY26.

 

Wednesday, shares of Bharat Electronics closed 0.5% lower at INR 386.50 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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