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Informist, Saturday, May 16, 2026

By Astha Oriel

MUMBAI/NEW DELHI – Bharat Electronics Ltd. is likely to report a moderate year-on-year increase in its top line and almost a flat growth in the bottom line for the March quarter, according to the brokerages tracking the company. The bottom line of the aerospace and defence major is likely to remain flat year-on-year due to cost absorption, product mix effects, and higher allocation of capital towards research and development, analysts said. The company's top line is expected to increase year-on-year due to the healthy execution of order book. 

The company's net profit is expected to be INR 21.06 billion, flat on year and up 31% on quarter, according to the average of estimates from 10 brokerages. Nomura Equity Research has the highest estimate of net profit at INR 23.37 billion, whereas the lowest estimate is INR 18.28 billion by Equirius Securities Pvt. Ltd. The company's net profit is likely to remain flat year-on-year following 13 quarters of consistent year-on-year increase.

The company's net sales are expected to be INR 98.31 billion, up nearly 8% on year and 38% on quarter, according to the average of the brokerages estimates. Motilal Oswal Financial Services Ltd. has the highest estimate of net sales at INR 103.71 billion, whereas the lowest estimate is INR 92.87 billion by Nirmal Bang Equities Pvt. Ltd. This is likely to be the 16th consecutive quarter of a year-on-year increase in the company's net sales.

Nomura expects the company's order inflows for the March quarter at INR 114.02 billion, whereas Kotak Securities Ltd. expects the company's order inflows at INR 112 billion. The company's order book as of Apr. 1 was at INR 740 billion, including export orders of $495 million. In the year-ago period, the order book was INR 716.5 billion.

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 27.51 billion, as per average of estimates from brokerages. Nomura Equity Research has the highest estimate of EBITDA at INR 30.26 billion, whereas Equirius Securities Pvt. Ltd. has the lowest estimate at INR 24.05 billion.

The company's EBITDA margins are expected to contract to 24.2–29.7% in the March quarter due to high base, according to the estimates by five brokerages. The EBITDA margin of the aerospace and defence major was 31% in the year-ago quarter.

For the financial year 2025-26 (Apr-Mar), Motilal Oswal Financial Services Ltd. expects the company's net profit at INR 60.14 billion, whereas Prabhudas Lilladher Pvt. Ltd. expects the net profit at INR 60.6 billion. The company's net profit was INR 52.88 billion in the year-ago period.

Motilal Oswal Financial Services expects the company's FY26 net sales to be INR 276.74 billion, whereas Prabhudas Lilladher expects the net sales to be INR 273.22 billion. The company's net sales were INR 236.58 billion in the year-ago period. Motilal Oswal Financial Services expects the company's EBITDA to be INR 78.90 billion, whereas Prabhudas Lilladher expects the EBITDA to be INR 78.52 billion. The company secured orders worth INR 300 billion in FY26, including export orders of $346 milion. The company's turnover in FY26 was INR 267.50 billion, up 16% on year. It recorded export sales worth $141.9 million, up around 34% on year.

For FY26, the management of the company had provided a revenue growth guidance of 15% and EBITDA margin of around 27%. Analysts will watch the management commentary on the outlook on FY27 order intake, ramp up of non-defence and exports businesses, improvement in working capital, additional orders from emergency procurement, and the impact on supply chain from the West Asia war.

The company will announce its earnings for the March quarter on Tuesday. Friday, Shares of Bharat Electronics closed more than 1% lower at INR 423.65 on the National Stock Exchange. Shares of the company have declined more than 6% since the company reported December quarter earnings on Jan. 28.

Of the 11 brokerage reports on the company available with Informist, eight have a 'buy' recommendation with an average target price of INR 504 per share. This is nearly 19% higher than the current share price.

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

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Edited by Akul Nishant Akhoury

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