Bharat Electronics rallies 4%; why defence stock hit new high?

Thus far in the calendar year 2026, BEL has outperformed the market by surging 16%, as compared to 6.6% decline in the BSE Sensex.

Bharat Electronics (BEL) share price today

 

The share price of Bharat Electronics (BEL) hit a new high of ₹464.40, soaring 4 per cent on the BSE in Thursday’s intra-day trade. The market price of the state-owned defence company surpassed its previous high of ₹461.40 touched on February 1, 2026.

 

At 11:23 AM; BEL, the top gainer among the BSE Sensex stocks, was up 3.6 per cent, as against 0.53 per cent rise in the benchmark index.

 

Thus far in the calendar year 2026 (CY26), BEL has outperformed the market by surging 16 per cent. In comparison, the BSE Sensex was down 6.6 per cent.

 

 

What’s driving defence stocks on Thursday?

 

BEL is the dominant supplier of radar, communication and electronic warfare equipment to the Indian armed forces.

 

BEL has fixed Friday, March 6, 2026 as the record date for the purpose of payment of interim dividend on equity shares for the financial year 2025-26.

 

The board of directors of BEL at its meeting held on February 27, 2026, has declared interim dividend of ₹1.95 per equity share of ₹1 each fully paid up (195 per cent) for the financial year 2025-26.

 

Meanwhile, on February 25, 2026, the navratna defence public sector undertaking, BEL said it secured additional orders worth ₹733 crore. The company said the major orders received include TR modules, communication equipment, encryptors, radars, jammers, software solutions, test equipment, upgrades, spares, services etc.

 

ICRA's rating rationale on BEL

 

BEL, by virtue of being majority-owned by the Government of India (GOI) and being a Navratna defence public sector undertaking (DPSU), witnesses a sizeable inflow of orders on a nomination basis. The ratings consider the strong order pipeline with an unexecuted order book worth ₹73,015 crore as on January 01, 2026, which translates into an order book to operating income (OI) ratio of around 3.2 times (based on FY2025 operating revenue), providing healthy revenue visibility in the medium term.   ICRA expects BEL to register an annual revenue growth of 10 per cent-15 per cent over the near to medium term, while maintaining its robust coverage metrics and superior liquidity position in the interim. Additionally, the GoI’s focus on increasing indigenous procurement under ‘Atmanirbhar Bharat’ initiative provides a unique opportunity for BEL to build its future revenue streams through development of domestic capabilities.

 

With the Government’s focus on increasing the share of private sector in the manufacturing and technological development in the defence sector, the competition from the private sector is likely to intensify in the medium to long term. However, BEL’s established track record and large manufacturing capacities with an adequate pool of trained manpower and focus on research and development (R&D) will be strong mitigating factors, the rating agency said in its rationale.

 

The 'Stable' outlook reflects ICRA’s expectation that BEL’s financial profile is likely to remain strong, supported by its strategic importance as the major supplier of defence electronics equipment to the Indian defence forces and the high sectoral entry barriers, which would limit competition, it added.

 

JM Financial Institutional Securities view on BEL

 

The YTD order inflow stands at ₹18,100 crore, and with a few major orders likely to be concluded in Q4FY26, the management is confident of the company surpassing its order inflow guidance of ₹27,000 crore (excluding QRSAM worth ₹30,000 crore). The management maintained its revenue growth guidance of 15 per cent plus, with EBITDA margin of 27 per cent plus for FY26. BEL continues to explore new growth opportunities through diversification, capability enhancement, competitiveness, modernisation, new product development and focus on exports, said analysts at JM Financial Institutional Securities.

 

The brokerage firm remains positive on BEL given revenue visibility from the strong order backlog (₹74,500 crore), sustained steady margin profile, healthy order prospects, increasing business opportunity from the Indian Navy (indigenisation and increasing fleet), continued focus on diversification (including drone and anti-drone system) and exports, capacity expansion and indigenisation push by the central government. Analysts maintain ‘add’ rating on BEL with a target price of ₹480 per share.

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