BEL fires growth salvo with defence orders, new contracts boost revenues

Order wins, strong pipeline, and long-term defence projects drive optimism in Bharat Electronics, with revenue growth visibility and major contracts like QRSAM and Project Kusha ahead

The stock of Bharat Electronics (BEL) has risen 10 per cent over the past seven to eight trading sessions, driven by order wins that improve revenue visibility. The gains mark a reversal of a declining trend in its stock price between early July and late August, during which the scrip fell over 13 per cent. Beyond recent wins, investor optimism is supported by a healthy order book and a robust long-term outlook.

 

The immediate trigger for the stock is the orders received this month. After securing orders worth ₹644 crore at the start of September for data centres, ship fire control systems, tank navigation systems, electronic voting machines, and jammers, among others, the defence public sector undertaking announced another ₹712 crore order earlier this week. The additional orders cover information technology infrastructure, cybersecurity solutions, a blockchain solution platform, and communication equipment, among other items.

 

With the latest round of order wins, the company’s order book has increased from ₹74,859 crore at the end of June to ₹78,600 crore. This is 3.3x its 2024-25 consolidated revenues and provides medium-term revenue visibility. For the year-to-date 2025-26 (FY26), cumulative order flow has reached ₹11,300 crore.

 

For FY26, management expects a minimum order inflow of ₹27,000 crore, excluding the quick reaction surface-to-air missile (QRSAM) order. If the QRSAM project is finalised, total order inflow may exceed ₹50,000 crore for the year.

 

The QRSAM order, expected to be finalised towards the end of FY26, is valued at over ₹30,000 crore, of which ₹10,000 crore has already been received year-to-date. While the company reported 17 per cent revenue growth and an operating profit margin of 28 per cent, it expects growth momentum to continue in FY26, with revenues rising 15 per cent and margins around 27 per cent.

 

Over the next five years, BEL aims to grow revenue at 15–17.5 per cent annually. Rising demand from domestic and international markets may drive the company to set up larger plants. Project Kusha, India’s ambitious initiative to develop a long-range air defence system (indigenising the S-400), also offers strong growth potential, according to SBI Securities.

 

 

Another growth driver is the increasing proportion of exports, which currently accounts for 4–5 per cent of revenues and is expected to reach around 10 per cent over the next two to three years.

 

Analyst Shubham Dalia of InCred Equities notes that the success of Operation Sindoor and Atmanirbharta (DAC 2020) positions BEL as a trusted government partner for indigenisation and defence electronics.

 

The brokerage highlights that BEL is among the main beneficiaries of the Technology Perspective and Capability Roadmap (TPCR)’s electronics push and Mission Sudarshan Chakra. TPCR-2025 maps 457 programmes, with roughly half focused on cyber systems, electronics, and electronic warfare, signalling a decisive shift towards networked, software-defined, and electronic wherewithal.

 

The Sudarshan Chakra is a multi-layered, homegrown $4 trillion air and space defence system designed to protect key installations by 2035 through the integration of surveillance, cybersecurity, and a combination of existing and next-generation air defence systems.