Bharat Electronics Q3 Results: Revenue and margin beat expectations, order book crosses Rs 70,000 crore
Bharat Electronics (BEL) reported a strong Q3 with 39 per cent revenue growth and a 47.3 per cent increase in net profit. EBITDA surged by 57.5 per cent, and the order book surpassed Rs 70,000 crore.
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State-run Bharat Electronics Ltd. (BEL), a key constituent of the Nifty 50, reported strong results for the December quarter, surpassing analysts' expectations. The company posted a significant rise in revenue, margin, and net profit, reflecting robust performance across key financial metrics.
Strong Revenue Growth
BEL reported a revenue of Rs 5,756 crore for Q3 FY2025, marking a 39 per cent year-on-year increase. This was also higher than the consensus estimate of Rs 4,955 crore, reflecting the company’s successful execution of its orders and strong demand in its defence and electronics segments. The growth trajectory aligns with BEL’s ongoing strategy to capture a larger market share in the defence and aerospace sectors.
Impressive Profit and Margin Expansion
BEL’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) surged by 57.5 per cent year-on-year to Rs 1,653 crore. The company's EBITDA margin also expanded, rising by 330 basis points to 28.7 per cent, compared to 25.4 per cent in the same quarter last year. This exceeded CNBC-TV18's poll estimate of 24.1 per cent, indicating better-than-expected operational efficiency and cost management. Net profit for the quarter climbed 47.3 per cent, reaching Rs 1,316 crore, well above the projected Rs 980 crore.
Order Book Above Rs 70,000 Crore
As of the end of Q3, BEL’s total order book stood at Rs 71,100 crore, marking a solid pipeline for future growth. The company's order inflow for the financial year 2025 was recorded at Rs 10,800 crore, although this is less than half of the company’s guidance of Rs 25,000 crore. Despite the shortfall in order inflows compared to the targeted figure, BEL’s current order book provides significant visibility into its future revenue stream.
Stock Performance and Market Sentiment
Following the earnings announcement, shares of Bharat Electronics rose by 3.54 per cent, trading at Rs 276.65, as investors reacted positively to the strong results. Despite a 7 per cent decline in the stock's value in January, BEL’s strong quarterly performance and healthy order book have bolstered investor confidence.
Outlook
BEL’s robust Q3 results reflect the company’s ability to manage operational challenges while delivering growth. However, the slower-than-expected order inflows raise questions on whether the company can meet its full-year guidance. Moving forward, BEL’s focus will likely be on securing more defence and government contracts, which remain critical to its long-term prospects.
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02:30 PM IST