Navratna Defence PSU Bharat Electronics Ltd (BEL) delivered a strong Q3 FY25 performance, exceeding market expectations with robust revenue growth and margin expansion. The company reported a 37% YoY increase in revenue from operations, reaching ₹5,643 crore, up from ₹4,120.10 crore in Q3 FY24. EBITDA surged 57.5% YoY to ₹1,653 crore, with margins improving by 330 basis points to 28.7%.
Profit before tax (PBT) jumped 49.64% YoY to ₹1,754.15 crore, while net profit (PAT) rose 47.33% to ₹1,316.06 crore. For 9MFY25, revenue stood at ₹14,173.68 crore, compared to ₹11,484.92 crore in the same period last year. BEL’s order book as of January 1, 2025, stood at ₹71,100 crore, reflecting its strong business pipeline.
Brokerage updates
BEL’s strong performance led multiple brokerages to reaffirm Buy or Outperform ratings, citing margin strength and a robust order pipeline:
Jefferies maintained a ‘Buy’ rating with a target price of ₹370, noting that Q3 EBITDA was 51% above expectations, with margins rising to 28.7% vs the expected 23.7%. The brokerage highlighted that BEL’s revenue and margins can be volatile due to delivery cycles but expressed confidence in sustained profitability.
Nomura also maintained a ‘Buy’ rating with a target price of ₹363, citing a significant operational beat in Q3. The brokerage raised FY25 EBITDA margin/EPS estimates by 200 bps/8%, expecting heavy ordering in Q4, while noting that management remained conservative, keeping sales and margin guidance unchanged.
Macquarie maintained an ‘Outperform’ rating with a target price of ₹350, highlighting that FY25 order guidance remains intact, with large-value orders worth ₹25,000-50,000 crore expected in FY26. The firm also noted that submarine components could be another major order pipeline.
Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹364, emphasizing that BEL is confident of meeting its FY25 order inflow guidance of ₹2,50,000 crore. The company is also looking to expand its non-defense business to 15% in the coming years and expects the QRSAM (Quick Reaction Surface-to-Air Missile) order to be finalized by the end of FY26.
Stock performance
BEL’s stock was trading at ₹287.85, up 3.26%, from the previous close of ₹278.75 as of 10:05 AM. The stock hit an intraday high of ₹287.90 and a low of ₹281.60. The 52-week range stands at ₹171.75 – ₹340.50. The trading volume stood at 1.56 crore shares, with open interest at 18.76 crore shares.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
