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Informist, Friday, Oct. 31, 2025

--Bharat Electronics: Order book as of today INR 756 billion 

--CONTEXT: Comments by Bharat Electronics management in post-earnings concall 

--Bharat Electronics: Execution of QRSAM program likely to take 5-6 years 

--Bharat Electronics: Should meet 90-100% of FY26 planned delivery on time 

--Bharat Electronics: Co's product mix may not change much due to QRSAM 

--Bharat Electronics: See no major impact on co's margins from QRSAM orders 

--Bharat Electronics: Order book spread equally among Army, Navy, Air Force 

By Shakshi Jain 

MUMBAI – Navratna public sector undertaking Bharat Electronics Ltd. is confident of meeting the multiple financial and operational targets it had set out for 2025-26 (Apr-Mar) at the beginning of the year, a top company official said in a post-earnings conference call with analysts Friday. 

The aerospace and defence electronics company had given a guidance of at least 15% growth in its top line and an earnings before interest, tax, depreciation, and amortisation margin of 27% for FY26. It also aims to secure orders worth INR 270 billion during the year, barring the Quick Reaction Surface to Air Missile or QRSAM order. Including the large order for QRSAM, the company is eyeing an order inflow aggregating INR 570 billion in FY26. Further, the company aims to invest at least INR 16 billion in research and development, and incur over INR 10 billion in capital expenditure during FY26. 

"...the way we have progressed through Q1 (Apr-Jun) and upward through Q2 (Jul-Sept), we are confident that whatsoever guidance, which we had given at the year start, we are on the right track to meet those guidance," the company official said, adding that Bharat Electronics aims to meet 90-100% of its planned deliveries for FY26 on time.

In the September quarter, the company's net profit rose nearly 18% on year to INR 12.86 billion and its revenue grew nearly 26% on year to INR 57.64 billion. For the first six months of FY26, the company's net profit stood at INR 22.55 billion, up almost 21% on year. Its revenue for the six-month period rose 16% on year to INR 101.80 billion. 

The company's order book currently stands at INR 756 billion, up from INR 744.53 billion as of Oct. 1. The company has so far received 11 orders worth around INR 13.50 billion under the government's emergency procurement system. "...around INR 2,000 crore (INR 20 billion) worth of emergency procurement orders are in pipeline...we are expecting it mostly by next two weeks," the company's management said.

Other orders in the company's pipeline include those for the Shatrughat and Samaghat electronic warfare systems and next-generation corvette-related subsystems. According to the company's management, several orders in the range of INR 20 billion–INR 50 billion are in the pipeline for the company over the next two-three years.

The management also said Bharat Electronics expects the QRSAM order, valued at INR 300 billion, before March. "We have already submitted our RFP (request for proposal) response, etc. So, cost audit and other activities as per the procedure is going on, and we are confident of achieving that by March," the management said.

Once the QRSAM order is received, the company estimates its execution would take up to five-six years due to the complexity of the programme. Further, it does not anticipate any revenue contribution from the programme in the first 12-18 months. The company does not expect a major change in its product mix or margins due to the QRSAM order. 

The company's present order book is spread almost equally between the Army, Navy, and Air Force, according to the company's management.  End

Edited by Avishek Dutta

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