BEL share price: Should you BUY defence PSU stock after Q4 Results?

Shares of Bharat Electronics Limited, the state-run aerospace and defence electronics company, are likely to remain in focus on Wednesday after the company reported a steady set of earnings for the March quarter and full financial year FY26.

The Navratna defence PSU posted a consolidated net profit of Rs 2,225.22 crore for Q4 FY26, marking a 4.61 per cent year-on-year rise from Rs 2,127.04 crore in the corresponding quarter last year.

Revenue from operations increased nearly 12 per cent to Rs 10,224.43 crore during the January-March period, compared with Rs 9,149.59 crore a year ago, supported by healthy execution across its defence electronics business and steady order inflows.

On a standalone basis, BEL reported a net profit of Rs 2,203.16 crore for the March quarter, up around 5 per cent from Rs 2,104.78 crore in the corresponding quarter of the previous financial year. Revenue from operations stood at Rs 10,177.17 crore, registering an 11.5 per cent year-on-year growth.

Dividend announced

BEL’s board recommended a final dividend of Rs 0.55 per fully paid-up equity share of face value Re 1 each for FY26. The dividend is subject to shareholders’ approval at the upcoming Annual General Meeting (AGM).

EBITDA rises, margins under pressure

The country’s leading defence electronics maker reported stable operational performance during the quarter. EBITDA rose 6 per cent to Rs 2,982 crore from Rs 2,816 crore in the year-ago period.

However, EBITDA margin contracted to 29.1 per cent from 30.7 per cent last year, indicating some pressure on profitability despite strong revenue growth.

FY26 performance

For the full financial year FY26, Bharat Electronics reported revenue from operations of Rs 27,479.63 crore, up 16.15 per cent from Rs 23,658.01 crore recorded in FY25.

Profit after tax for FY26 climbed 14.38 per cent to Rs 6,048.48 crore, compared with Rs 5,288.25 crore in the previous financial year.

The company said its order book stood at Rs 73,882 crore as of April 1, 2026, providing strong revenue visibility for the coming quarters.

Focus on future technologies

Earlier this month, BEL signed a tripartite memorandum of understanding (MoU) with Metamind Systems Private Ltd and Kristellar Aerospace Private Ltd for co-operation and co-development of future-ready products and technologies across defence and non-defence segments.

According to the company, the partnership aims to leverage the complementary strengths of the three firms in business facilitation and technological innovation.

Brokerage view

Brokerage firm Nomura maintained a ‘Neutral’ rating on BEL with a target price of Rs 454.

The brokerage said BEL delivered a steady operating performance in Q4 FY26, largely in line with expectations. It added that management commentary on FY27 guidance, order inflow momentum and margin trajectory will remain key monitorables going ahead.

Nomura noted that the stock currently trades at 45x and 39x FY27F and FY28F earnings per share estimates of Rs 9.3 and Rs 10.8, respectively.