Bharat Electronics Limited — Q1 FY26
BEL reported Q1 FY26 revenue of INR 4,417 crore (+5.19% YoY), missing internal double-digit targets due to ~INR 200 crore revenue deferral from Israel-Iran supply chain disrupti...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
What drove the sharp YoY margin improvement?
Asked by Umesh Raut, Nomura
Management cited product mix but did not quantify the contribution of each factor.
no quantification of driversattributed to product mix without specifics
Read the exchange
Question
We have seen a very sharp increase in our margins on a year-on-year basis. Could you please share some insights behind these improvements? What was on the account of material saving, localization, and regionalization, and how much was on the account of product mix?
Manoj Jain, Chairman and Managing Director
Overall margins, that is. Last year itself we had almost 27%. It is slightly better than that... As regards to gross margins, gross margins were better in the first quarter since the composition of product mix was more in-house manufacturing was there.
Answered
High priority
Timelines for QRSAM, MFSTAR, and Project Kusha orders.
Asked by Umesh Raut, Nomura
Management provided specific timelines and status for each program.
Read the exchange
Question
Update on QRSAM program... MFSTAR program... Project Kusha... timelines for these following programs?
Manoj Jain, Chairman and Managing Director
QRSAM... DFC Approval was given on 3rd July, 2025... confident to get this order by February, March... MFSTAR... hoping in the next three to six months we will get a considerable portion... Kusha... still in the developmental phase... order conversion will take minimum three to four years.
Answered
Medium priority
Has BEL received orders for Virupaksha radar?
Asked by Amit Dixit, Goldman Sachs
Management clarified BEL's role and stage of the program.
Read the exchange
Question
There has been a facility by the company indicating that they have received orders for exciter units... Have we also received the order or in which phase we are?
Manoj Jain, Chairman and Managing Director
We have got one order, developmental order from DRDO for that... main order is with, I think, if I'm not wrong, it is BEL and Astra Microwave... Right now, it is a prototype development jointly with DRDO.
Partial answer
High priority
Status of emergency procurement orders and size.
Asked by Amit Dixit, Goldman Sachs
Management confirmed orders received but did not quantify the total emergency procurement opportunity.
no specific size of emergency procurement given
Read the exchange
Question
In the last concall... we expected that there could be around INR 40-50 thousand crore of emergency procurement... What are you hearing?
Manoj Jain, Chairman and Managing Director
We have received one or two orders already as part of emergency procurement... By next two months, we are expecting many more orders... they will be part of our INR 27,000+ crore of order books... We have already received more than INR 10,000 crore.
Answered
High priority
Impact of supply chain and rare earth magnet ban on revenue.
Asked by Amit Anwani, PL Capital
Management explained the revenue shortfall and clarified no impact from rare earth ban.
Read the exchange
Question
Any impact of supply chain since this quarter we did about 5% growth despite very strong order book? ... how are we dealing with the rare earth magnet ban which came from China?
Manoj Jain, Chairman and Managing Director
We only could register 5.19% growth... because of geopolitical situation, especially in Israel-Iran conflict, that affected our minimum INR 200+ crore of the revenue... Regarding these rare earth magnets, it is not affecting us directly.
Answered
High priority
Timelines and size of Shatrughat and Samaghat EW orders.
Asked by Harshit Patel, Equirus Securities
Management provided both timeline and estimated order value.
Read the exchange
Question
Could you share some timelines for the Shatrughat and Samaghat electronic warfare system orders? Also, how large these orders would be?
Manoj Jain, Chairman and Managing Director
We have got one Samaghat program. Already, the RFP has been issued to us... total order, I think, for Shatrughat from Samaghat put together will be around INR 6,500+ crore.
Partial answer
Medium priority
Addressable electronics pie in next-gen corvettes program.
Asked by Harshit Patel, Equirus Securities
Management answered with indigenous content rather than the total electronics value.
did not give exact addressable pie, only indigenous content percentage
Read the exchange
Question
What is the overall addressable electronics pie in this order out of which we are getting this INR 60-100 billion?
Manoj Jain, Chairman and Managing Director
In the total program per se, I think around 60-70% minimum indigenous content will be there... roughly you can assume around 70% indigenous content for the NGC program for BEL.
Answered
High priority
Can BEL sustain 15%+ revenue growth from large base?
Asked by Atul Tiwari, JPMorgan
Management gave a clear affirmative with specific growth targets.
Read the exchange
Question
Thinking forward three to four years out, can we sustain 15%+ revenue growth from this large base of revenue?
Manoj Jain, Chairman and Managing Director
Certainly, yes. 16% is not at all a challenge. We are actually internally aiming for 17.5%+ ... I do not see 16% or 17% will be a challenge for me. Definitely, it will not go below 15%.
Evasive
High priority
Can margins expand beyond 28% over next 2-3 years?
Asked by Atul Tiwari, JPMorgan
Management only reiterated current year guidance, avoiding the multi-year outlook.
did not address beyond current yeardeferred to future review
Read the exchange
Question
Can we see further margin expansion also over the next two, three years beyond 28%?
Damodar Bhattad S, Director of Finance and CFO
Presently, we have guided for a margin of 27% this year. We maintain that... Overall, for the current year, we maintain it at 27%.
Answered
Medium priority
Employee base, R&D spending as % of revenue.
Asked by Manish Ostwal, Nirmal Bang
Management provided specific numbers for employee count and R&D percentage.
Read the exchange
Question
What is the current base of employee? ... How much money we are spending on the innovation R&D side on a yearly basis, as a percentage of revenue?
Manoj Jain, Chairman and Managing Director
Our employee base was around 9,000... we will cross around 9,600+ ... Total, we put in R&D around 6.2% last time... this year also, we are expecting a bit more than that only. Between 6%-7% of our turnover.
Answered
High priority
Export revenue outlook and LCA Mark 1A contribution.
Asked by Jyoti Gupta, Nirmal Bang
Management gave a clear export target and LCA revenue estimate.
Read the exchange
Question
How is it likely to look? How is it going to look like in the next five years? ... What would be your contribution in terms of, from the LCAs this year?
Manoj Jain, Chairman and Managing Director
We are confident over a period of the next five years, we try to reach around 10% of our turnover through exports... Overall, I think we are planning around, you can assume around INR 1,000+ crore total put together for LCA and other helicopter programs of HAL.
Answered
High priority
Breakup of large pending orders in order book.
Asked by Dipen Vakil, PhillipCapital
Management provided a detailed list of major programs and their values.
Read the exchange
Question
Can you give us the breakup of the pending orders in your current order book? Maybe five, ten contracts which are large value in your order book.
Manoj Jain, Chairman and Managing Director
LRSM program... around INR 5,000+ crore... Fusers is around INR 4,500+ crore... Akash Army... around INR 3,000 crore... BMP upgrade around INR 3,000 crore... Ashwini Arudhra Radar around INR 2,500 crore... top 10-12 programs itself consisting of around INR 35,000-INR 40,000 crore order book.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue growth 5.19% in Q1 FY26 | 5.19% | 5.19% | Matches filing |
| Revenue growth guidance more than 15% | 15% | 5.19% | Overstated vs filing |
| EBITDA margin guidance more than 27% | 27% | 29.86% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.