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Informist, Thursday, Jan. 22, 2026

 

By Astha Oriel

 

MUMBAI – Bharat Electronics Ltd. is expected to report double-digit year-on-year growth in revenue and net profit for the December quarter, driven by healthy execution of its order book, according to brokerages tracking the company. The operating margin of the aerospace and defence major, however, is likely to decline due to product mix and a high base.

 

The company, in which the government holds a 51.1% stake, develops electronics technology solutions for the defence and civilian segments. It gets 90% of its revenue from government orders for the Indian armed forces and the rest through non-defence and export segments.   

 

Bharat Electronics is expected to report a net profit of INR 14.46 billion for the December quarter, up nearly 10% on year and more than 12% on quarter, according to the average of estimates from nine brokerages. The company reported a net profit of INR 13.16 billion in the year-ago quarter. The highest estimate for the net profit is INR 15.36 billion by Mirae Asset Sharekhan Ltd. and the lowest is INR 13.19 billion by Nirmal Bang Equities Pvt. Ltd. This is likely to be the 13th consecutive quarter of year-on-year increase in the company's net profit.

 

The company's net sales for the December quarter are expected to be INR 66.67 billion, up nearly 16% on year and quarter, according to the average of estimates. The company reported net sales of INR 57.56 billion for the year-ago quarter. The highest estimate for net sales for the December quarter is INR 69.83 billion by Mirae Asset Sharekhan and the lowest is INR 63.47 billion by Elara Securities (India) Pvt. Ltd. This is likely to be the 14th consecutive quarter of on-year increase in the company's net sales.

 

Nuvama Wealth Management Ltd. expects 18-20% execution growth on the back of an order backlog of about INR 740 billion, with margins comfortably attainable at around 28%, driven by higher operational efficiency and localisation.

 

Nomura Equity Research, Prabhudas Lilladher Pvt. Ltd., and Kotak Securities Ltd. expect order inflows of around INR 50 billion–INR 56 billion for the December quarter. Kotak Securities said the company has achieved 67% of its financial year 2025-26 (Apr-Mar) guided order inflow (excluding Quick Reaction Surface to Air Missile). The company has given an order inflow guidance of INR 270 billion for FY26, according to Nomura.

 

The state-owned company's order book stood at INR 744.53 billion as of Oct. 1. Motilal Oswal Financial Services Ltd. expects the order book to be INR 745 billion at the end of the December quarter, whereas Nuvama expects it to be INR 740 billion.

 

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 18.49 billion, up nearly 12% on year, according to the average of estimates of eight brokerages. The company's EBITDA was INR 16.53 billion in the year-ago quarter. The highest estimate for EBITDA is INR 19.18 billion by Kotak Securities and the lowest is INR 17.40 billion by Nirmal Bang.

 

The company's operating margin is likely to contract by 28 basis points to 112 basis points on year, according to estimates from four brokerages. Mirae Asset Sharekhan, however, expects EBITDA margin to expand 7 bps on year due to the benefit of operating leverage. The highest estimate for EBITDA margin is 29% by Mirae Asset and the lowest is 27.6% by Prabhudas Lilladher. The company has given an EBITDA margin guidance of 27% for FY26.

 

BEL will report its December quarter results on Jan. 28. Shares of Bharat Electronics closed at INR 417.30 on the National Stock Exchange Thursday. Shares of the company have fallen nearly 2% since it reported its September-quarter results.

 

Of the eight brokerage reports on the company available with Informist, six have a 'buy' recommendation, with an average target price of INR 492. This is nearly 18% higher than the company's current market price. Two have given a 'hold' recommendation with an average target price of INR 439.

 

The Following are the December quarter earnings estimates for Bharat Electronics from nine brokerage firms in descending order of the estimate of net profit in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
Mirae Asset Sharekhan Ltd.	69.83	15.36	-
Motilal Oswal Financial Services Ltd.	67.80	14.87	19.12
Nuvama Wealth Management Ltd.	68.19	14.87	19.09
JM Financial Institutional Securities Pvt. Ltd.	67.60	14.73	18.79
Kotak Securities Ltd.	67.37	14.70	19.18
Nomura Equity Research	66.19	14.67	18.82
Prabhudas Lilladher Pvt. Ltd.	65.51	14.32	18.08
Elara Securities (India) Pvt. Ltd.	63.47	13.41	17.44
Nirmal Bang Equities Pvt. Ltd.	64.05	13.19	17.40
Average	66.67	14.46	18.49

 

End

 

Edited by Saji George Titus

 

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