Bharat Electronics FY25 Annual Earnings Summary
4 quarters covered · ₹23,770 Cr revenue · ₹5,323 Cr PAT · 28.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Large orders like QRSAM and MRSAM may slip beyond FY26, impacting order book growth and revenue visibility.
Q1 FY25 · mediumPast disruptions due to Israel war impacted execution; management noted improvement but risks remain.
Q1 FY25 · mediumManagement acknowledged that component-level indigenization will take 5-10 years, posing dependency on imports.
Q1 FY25 · mediumProvision for LD and doubtful debts rose to INR 132 crore from INR 54 crore YoY, impacting other expenses.
Q2 FY25 · mediumAshwini Radar order has been delayed for several quarters; management now expects it within 3 months. Any further delay could impact order inflow target.
Q2 FY25 · mediumOperating cash flow was negative ₹2,300 crore in H1 due to inventory buildup for H2 execution. If revenue growth slows, cash flow recovery may be delayed.
Q2 FY25 · mediumBEL lost AEW&C integration order to Adani; increasing competition in system integration could pressure margins and market share.
Q3 FY25 · mediumEighth pay commission due from January 2027 could increase employee costs, though management expects minimal impact on cost-to-turnover ratio.
Q3 FY25 · mediumEmerging competition from startups and MSMEs in smaller anti-drone systems could erode market share.
Q3 FY25 · mediumA provision of ~₹600 crore was made for liquidated damages due to supply delays, indicating execution risks.
Q4 FY25 · mediumThe INR 30,000 crore QRSAM order may slip to Q1 FY27 due to procedural delays, impacting order inflow guidance.
Q4 FY25 · mediumFaster execution of emergency procurement could pressure margins, though management expects indigenization to offset.
What changed through the year
Q1 FY25 · Revenue growth of 15% for FY25
Management reaffirmed 15% revenue growth guidance for the full year, despite Q1 growth of 19.1%.
Q1 FY25 · EBITDA margin of 23-25% for FY25
EBITDA margin guidance maintained at 23-25% for the full year, with gross margin expected at 40-42%.
Q1 FY25 · Order inflow of INR 25,000 crore for FY25
Order inflow guidance maintained at INR 25,000 crore for the current fiscal year.
Q1 FY25 · QRSAM order expected in April-June 2025
QRSAM order expected to be >INR 25,000 crore, likely in Q1 FY26.
Q2 FY25 · Revenue growth of 15% for FY25
Management reiterated revenue growth guidance of 15% for FY25, with H1 revenue of ₹8,530 crore implying ~₹14,500 crore in H2.
Q2 FY25 · Order inflow target of ₹25,000 crore for FY25
Management confident of achieving ₹25,000 crore order inflow, with major orders expected in H2 including Ashwini Radar (₹2,500 crore), Akash (₹2,000 crore), and others.
Q2 FY25 · EBITDA margin guidance of 23%-25% for FY25
Management maintained EBITDA margin guidance of 23%-25% for FY25, despite H1 margin of 27.26% due to product mix.
Q2 FY25 · CapEx of ₹800 crore for FY25
Management guided CapEx of ₹800 crore for FY25, with new facilities in Hyderabad and Nagpur expected to become operational in FY26-27.
Q3 FY25 · FY25 revenue growth >15%
Management reaffirmed guidance of revenue growth exceeding 15% for FY25, confident based on 9M performance.
Q3 FY25 · FY25 EBITDA margin 23-25%
EBITDA margin guidance maintained at 23-25%, with potential to touch 25% based on Q3 performance.
Q3 FY25 · FY25 order inflow >₹25,000 crore
Management confident of achieving order inflow target of ₹25,000 crore for FY25, with several large orders in final stages.
Q3 FY25 · QRSAM order expected in FY26
QRSAM program (₹25,000-30,000 crore) expected to be awarded before March 2026, with 90% confidence.
Q4 FY25 · Revenue growth of ~15% in FY26
Management guided revenue growth of around 15% for FY26, consistent with the 15-17.5% medium-term target.
Q4 FY25 · EBITDA margin of ~27% in FY26
Management guided EBITDA margin of around 27% for FY26, down from 29.39% in FY25 but still healthy.
Q4 FY25 · Order inflow >INR 27,000 crore in FY26
Excluding QRSAM, management expects order inflow of more than INR 27,000 crore in FY26.
Q4 FY25 · Capex >INR 1,000 crore per year
Management plans to invest more than INR 1,000 crore annually in capex, including new factories.