BEL share price jumps after India–France defence pact, Here’s what investors should know

BEL share price: Shares of Bharat Electronics Ltd (BEL) rose in early trade on Wednesday after India and France renewed their 10-year defence cooperation agreement and signed a joint venture pact to manufacture Hammer missiles in India. The development improved investor sentiment towards defence stocks.

At 9:30 AM, BEL share price was at Rs 452.80, up Rs 5.95 or 1.33 per cent. The stock opened at Rs 450 and hit a high of Rs 453.25 during the session. BEL’s market capitalisation stood at Rs 3.31 lakh crore. The stock remains close to its 52-week high of Rs 461.65.

BEL signs Hammer missile manufacturing JV with Safran

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BEL signed a memorandum of understanding with Safran Electronics and Defence to manufacture Hammer missiles in India through a joint venture. The agreement was signed as part of the broader India–France defence cooperation renewal.

The Hammer missile is a precision-guided weapon used on Rafale fighter jets. Local manufacturing will support India’s defence self-reliance and reduce dependence on imports. It will also strengthen BEL’s position in advanced missile systems.

What is the deal about?

India and France renewed their 10-year defence cooperation agreement to expand collaboration in defence manufacturing and technology. As part of this agreement, BEL signed a memorandum of understanding with Safran Electronics and Defence to manufacture Hammer missiles in India through a joint venture.

The agreement was signed between India’s Defence Secretary and France’s Deputy Director General for International Relations and Strategy. The Hammer missile is a precision-guided weapon used on Rafale fighter jets and other advanced aircraft.

Prime Minister Narendra Modi and French President Emmanuel Macron welcomed the joint venture and broader defence cooperation. Both countries also highlighted cooperation in fighter aircraft, jet engines, helicopters, and submarine programmes. The agreement supports India’s Make in India initiative and aims to increase domestic defence production.

How it will benefit BEL

The joint venture will strengthen BEL’s presence in advanced missile manufacturing. Manufacturing Hammer missiles in India will reduce imports. This means more orders can go to BEL instead of foreign companies. It will also make BEL more important in India’s defence sector.

The deal will help BEL work closely with Safran, a global defence company. This will help BEL learn new technology and improve its products.

India is increasing defence spending and focusing on local manufacturing. This creates strong long-term growth opportunities for BEL.

What shareholders should know

The government is strongly supporting the defence sector. India is focusing on manufacturing defence equipment in the country and reducing imports. This is expected to bring more orders for Indian defence companies such as BEL.

The Hammer missile joint venture improves BEL’s future growth outlook. Such partnerships can help the company get more orders and increase its revenue over time. This also strengthens BEL’s position in upcoming defence projects.

BEL is one of the key companies that can benefit from India’s defence modernisation and Make in India push.

Strong financial performance and order book

BEL has reported strong earnings growth in recent quarters. For the December quarter (Q3 FY26), revenue rose 23.7 per cent year-on-year to Rs 7,121.98 crore. Profit after tax increased 20.8 per cent to Rs 1,590.06 crore.

For the first nine months of FY26, revenue stood at Rs 17,302.46 crore, compared with Rs 14,538.30 crore last year. Profit after tax rose to Rs 3,845.32 crore, up from Rs 3,183.47 crore in the same period of FY25.

The company’s order book stood at Rs 73,015 crore as of January 1, 2026. The strong order pipeline provides clear revenue visibility and supports BEL’s long-term growth outlook.