India-EU deal is opening up a new market for us, says BEL’s Manoj Jain

Beyond Europe, BEL expects continued strong domestic order inflows with a 15% YoY growth. This estimate, he said is backed by projects already in the pipeline and their expected conversion timelines.

• BEL sees new EU defence ties opening markets and joint research opportunities
• BEL expects over 15% growth, backed by strong domestic order pipeline
• BEL's Q3FY26 net profit rose 20.44% YoY to Rs 1,579.70 crore

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Bharat Electronics Ltd (BEL) said emerging defence cooperation between India and the European Union could open new markets and research opportunities, even as it reaffirmed confidence in sustaining more than 15% growth backed by a robust order pipeline.

“It is too early to tell that (how it will impact) right now, but definitely it is opening up a new market for us,” BEL's CMD Manoj Jain said during the defence major’s Q3FY26 earnings call.

Jain highlighted potential collaboration in research and development. “There are companies that are strongly R&D and technology-focused. We can expect valuable partnerships for joint research, which may also result in some funding opportunities from a research perspective," he said. Additionally, "research efforts often lead to new business opportunities. Therefore, we anticipate generating more and more business from these collaborations."

While the impact has not yet been quantified, Jain indicated clarity could come in the next few months. “Today we have not quantified that. Maybe when we meet in April, by the time we will quantify how much more is there. And based on that only we will give you the better guidance for next year.”

Beyond Europe, BEL expects continued strong domestic order inflows with a 15% YoY growth. This estimate, he said is backed by projects already in the pipeline and their expected conversion timelines.

“There are so many projects in pipeline for next financial year other than QRSM,” he said. “Definitely it will be more than Rs 25,000 crore which we are seeing minimum other than QRSM.”

On the QRSM order, Jain said the company is more than 90% confident of closure this year. “Only some few percent chance to spill over to Q1 of next year,” he said. If concluded in FY26, the order could add “around Rs 30,000–32,000 crore additional orders” to BEL’s order book.

On margins, Jain said the company expects to maintain EBITDA around 27%, citing changes in product mix.

Clarifying expense trends, Jain said movements in other expenses were largely driven by provisioning. “Last year the provisions were slightly more, because of which the other expenses are decreased now,” he said.

For the quarter ended December 2025, BEL reported a net profit of Rs 1,579.70 crore in Q3FY26, a YoY increase of nearly 20.44 percent. Revenue from operations also grew nearly 24% YoY.