29 Jul , 2025 By : Debdeep Gupta
Shares of Bharat Electronics fell 3 percent to Rs 378 in morning trade on July 29 after the company's profit jumped 25 percent year-on-year, but witnessed a sequential decline.
The state-run defence electronics firm reported a standalone net profit of Rs 969.13 crore for the quarter ended June 2025, up 25 percent from Rs 776.14 crore a year ago. Revenue from operations also edged higher by 5.2 percent to Rs 4,416.83 crore compared to Rs 4,198.77 crore in the same period last year.
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After the results, CLSA has maintained an outperform rating on Bharat Electronics Ltd with a target price of Rs 400, citing strong order momentum and robust margin performance. The brokerage noted that the slowdown in BEL's FY25 order backlog is now behind, with the company recording a 29 percent year-to-date growth in new orders. BEL is well-positioned to secure $7 billion worth of orders over the next 12 months—equivalent to 84 percent of its current backlog.
CLSA highlighted that geopolitical tensions have prompted the government to fast-track 'Make in India' defence orders, and BEL has guided for a 44 percent jump in order inflows in FY26. Additionally, Q1 EBITDA margin expanded by 576 basis points year-on-year, surpassing the company's 27 percent guidance.
However, on a quarter-on-quarter basis, BEL’s profit declined sharply, falling over 54 percent from the Rs 2,104.78 crore posted in the March 2025 quarter.
On the consolidated front, the company’s net profit stood at Rs 969.05 crore, marking a 22.5 percent increase year-on-year. Consolidated revenue came in at Rs 4,439.74 crore, up 4.6 percent over the same period last year.
BEL managed to rein in its expenses, which declined 2.13 percent year-on-year to Rs 3,291.21 crore. Total income in the quarter rose 3.5 percent to Rs 4,603.06 crore, up from Rs 4,447.15 crore in the year-ago period.
The company’s order book remained robust, standing at Rs 74,859 crore as of July 1, 2025—providing strong visibility for future revenue.
At about 9:30 am, shares of the company were trading at Rs 384, lower by 1.4 percent from the last close on the NSE. Bharat Electronics' shares have risen 32 percent since the beginning of the year.
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