BEML's defence revenue may touch Rs 5,000 crore in five years, says Chairman

Shantanu Roy spoke about BEML's order book, defence aerospace and rail & metro opportunities, capex plans, employee costs and more.

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26 Aug, 2025 12:21

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BEML Limited's chairman and managing director, Shantanu Roy, anticipates that the company's defense revenue could reach approximately Rs 4,500-5,000 crore over the next 4-5 years. Additionally, he envisions the defense order book potentially reaching around Rs 7,000-8,000 crore within the next 3-4 years.

In an interview with CNBC TV-18, Roy spoke about the company's order book, defence aerospace and rail & metro opportunities, capex plans, employee costs and more.

Defence Opportunities

"High mobility vehicle, the engines, the bridging systems as well as the armored recovery vehicles are our core strengths," Roy said.

He also highlighted rail and defence as key growth areas where margins should improve substantially.

"Mining and construction has always contributed 45-50 percent the overall revenue. Last year it did exactly 50 percent," Roy said.

Also Read | BEML appoints Shantanu Roy as CMD effective August 1

Capex plans

The capex number BEML has decided to infuse this year is around 5 percent of its last year's revenue. "Time for implementing the capex is between 12-15 months," Roy said.

Rail and Metro opportunities

"After the 1st quarter (of FY24) we have received a Bengaluru metro contract worth Rs 3,100 crore and so with that our current order book is Rs 12,800 crore," Roy said. "We should be ending this year as on 31st March 2024 with an order book guidance of Rs 17,000 crore," he added, reflecting optimism about the company's order book.

Explaining the bifurcation, Roy said, "Current order book is Rs 12,800 crore out of which 60 percent is from rail and metro orders, around 30 percent is from the defence aerospace orders and 10 percent from the Mining and construction vertical."

The state-owned heavy equipment maker said its consolidated loss narrowed to Rs 74.6 crore in the first quarter of FY24 from Rs 82.3 crore a year earlier.

Speaking on metro rail projects, he said, "Apart from Vande Bharat trains, aluminium trains for the push pull car and the three metro projects (Chennai metro, Mumbai metro line 6 and Patna metro) that are expected to be completed within this particular financial year."

Also Read | BEML receives Rs 3,177 crore rolling stock order from Bengaluru Metro

Employee costs

"Our employee cost as a percentage or revenue has been 36 percent in the 1st quarter that is mostly because our fixed cost remains the same whereas our sales revenue has been quite low," Roy said.

BEML's employee cost in the previous financial year was around 21 percent, he said. "By FY24, we expect the employee costs should be around 20 percent of our revenue," he added.