'Confident that we will achieve more than the Rs 27,000 crore order book guidance in FY26': BEL's Manoj Jain

BEL also highlighted continued traction in emergency procurements, having already received 11 such orders worth about Rs 1,350 crore and expecting another Rs 2,000 crore to materialise shortly in the next two weeks.

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26 Aug, 2025 12:21

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Bharat Electronics Ltd (BEL) management believes that the defence major is well positioned to exceed its full-year order-intake guidance for FY 2026. Speaking at a post-earnings analyst call, the management pointed to sustained order inflows, progress on major defence programmes, balanced traction across business verticals and early signs of acceleration in export markets.

Manoj Jain, CMD at BEL, highlighted that the orderbook position as on October 1, 2025 stood at Rs 74,453 crore. A significant portion of the orderbook continues to originate from large defence platforms. As of early October, LRSAM contributed to around Rs 5,000 crore, electronic fuzes around Rs 4,500 crore, the BMP-2 upgrade Rs 3,000 crore and the Akash Army order of Rs 2,700 crore, with management adding that the top seven orders come to around Rs 25,000 crore out of the Rs 74,000 crore orderbook.

Continued traction in emergency procurements:

BEL also highlighted continued traction in emergency procurements, having already received 11 such orders worth about Rs 1,350 crore and expecting another Rs 2,000 crore to materialise shortly in the next two weeks.

Additionally, in case of the Quick Reaction Surface-to-Air Missile (QRSAM) programme, BEL has submitted its RFP response and is now undergoing cost audits and procedural clearances. The management reiterated that they are fully confident that they may get the order before March.

Of the roughly Rs 74,000-crore orderbook, the management noted that BEL had a balanced presence across land, naval and airborne systems. Jain explained that although certification and qualification frameworks differ across domains, the underlying electronics expertise overlaps. Indigenization, however, progresses at different paces, with “land systems the fastest, naval systems second, and airborne systems taking a bit more time.” He added that the company is confident that it will achieve more than the Rs 27,000 crore order book guidance in FY26.

Structured plan to grow exports:

The management also outlined a structured plan to grow exports, noting that international business “is a slightly different ball game because it requires different expertise and has various challenges.” At present, BEL expects exports to contribute 3–4% of revenues, but aims to gradually scale this contribution. “In the next two to three years, we are definitely going to have 5%, and our long-term vision is to increase it to 10% of our turnover coming from exports,” the company said. BEL currently holds an export orderbook of about $326 million and believes it is well positioned for steady growth. “We have very good leads… we are confident we are on the right trajectory and will keep giving better results on the export front,” management noted.

BEL reaffirmed that it is on pace to meet all operational and financial goals for the year. “The way we have progressed through Q1 and of course through Q2, we are confident that whatsoever guidance we had given at the year start, we are on the right track to meet those,” the company said. The defence major expects a revenue growth of more than 15%, EBITDA margin of around 27%, order inflow of Rs 27,000 crore excluding QRSAM (and about Rs 57,000 crore including it), R&D spending above Rs 1,600 crore, capital expenditure above Rs 1,000 crore and a steady defence-to-non-defence mix of 90:10 for the financial year.

For the first half of the financial year, the company posted revenue of Rs 10,180.48 crore, up from Rs 8,782.18 crore a year earlier. Net profit for the period rose to Rs 2,255.26 crore from Rs 1,867.41 crore in the previous fiscal.  For the reporting period, the company reported a net profit of Rs 1,286 crore, an 18 per cent increase from Rs 1,091 crore in the previous fiscal.

Also read: Our LIVE blog on Q2 earnings updates

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