Bharat Electronics Limited — Q3 FY26
BEL reported a strong Q3 FY26 with 9M revenue of INR 17,302 crore (+19% YoY) and PAT of INR 3,845 crore (+21% YoY).
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
Evasive
High priority
Will sales guidance be revised upward given 19% growth in 9M and INR 19,300 crore orders?
Asked by Umesh Raut, Nomura India
Management did not directly answer whether guidance would be revised upward, only reaffirmed existing guidance.
no revision commitmentvague 'achieve or exceed'
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Question
My first question is pertaining to the guidance for FY 2026, now, given that we have received reported about 19% sales growth in first nine months, and we have received closer to INR 19,300 crore of orders. So are we revising our sales growth number upwards?
Manoj Jain, Chairman and Managing Director
So regarding guidance, as we told, we are consistent about our guidance. So whatsoever guidance we gave at the start of the year, we are maintaining that, and we are confident that we will achieve or exceed this guidance.
Answered
High priority
Are NGC orders included in the INR 27,000 crore guidance for FY26?
Asked by Umesh Raut, Nomura India
Management directly confirmed inclusion of NGC orders in guidance.
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Question
So are we including these NGC orders in our guided number of INR 27,000 crore for FY 2026?
Manoj Jain, Chairman and Managing Director
Yes, this, around INR 3,000-4,000 crore is, included in that, for 25, 26, because we expected this conclusion.
Answered
High priority
Is EBITDA margin guidance of 27% likely to be outperformed given 29% in 9M?
Asked by Umesh Raut, Nomura India
CFO directly stated margin guidance is maintained at 27%.
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Question
So are we expecting a major outperformance in terms of EBITDA margin for full year 2026?
Damodar Bhattad, CFO
No, as of now, we maintain the EBITDA margin of 27%, what we have guided for the current year. Because it's a composition of products which we sell.
Partial answer
High priority
What is the outlook for margin stability and key drivers for margin expansion?
Asked by Jyoti Gupta, Nirmal Bang
Management maintained current year guidance but deferred FY27 outlook and gave only qualitative drivers.
deferred guidance for next yearno specific driver quantification
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Question
What's your outlook for margin stability through FY 2026 and into FY 2027? Are there any headwinds from input costs or manpower expenses? And also, can you elaborate on the key drivers behind this margin expansion?
Damodar Bhattad, CFO and Manoj Jain, CMD
FY 2026, as we told, we are maintaining the margin of 27%, EBITDA margin of 27% for the current year. As far as the next financial is concerned, we'll be giving our guidance when we meet next time.
Partial answer
High priority
What large orders beyond QRSAM ensure order intake of INR 30,000-35,000 crore next year?
Asked by Amit Anwani, Prabhudas Lilladher Capital
Management gave a broad pipeline number but did not specify individual large orders.
no specific order names or sizes given
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Question
Just wanted to understand, apart from QRSAM, which is expected to sustain growth, you will be needing more than INR 30,000-35,000 kind of intake. So, does that give you confidence that we are going to have this kind of intake? Are there any medium to large orders which you're expecting in next 12 to 18 months?
Manoj Jain, Chairman and Managing Director
There are so many projects in pipeline for next financial year other than QRSAM, and we are closely watching that, and definitely it will be more than INR 25,000 crore, which we are seeing minimum other than QRSAM.
Answered
High priority
Why not revise EBITDA margin guidance upward given strong 9M performance?
Asked by Amit Anwani, Prabhudas Lilladher Capital
Management directly explained product mix shift and reaffirmed 27% margin floor.
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Question
Since we had very strong margins and even the utilizations must be going up, so what stops us to revise the guidance? Because the EBITDA for guidance at 27% for Q4 is only 25%. So are we expecting the product mix to be not favorable in Q4?
Manoj Jain, Chairman and Managing Director
Product mix has been more favorable up to December, and maybe slightly lesser favorable from this time on. We feel that the EBITDA margin will be maintained around 27%. It will not go below 27.
Answered
Medium priority
What percentage of COGS is semiconductor chips and are there supply constraints?
Asked by Amit Dixit, Goldman Sachs
Management provided a clear percentage range for semiconductor content and addressed supply constraints.
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Question
The first one is essentially on recently we have been hearing a lot of shortage with respect to semiconductor chips, as a result of which the prices have gone up significantly in the market. So are you also seeing any impact of that in your bill of materials? And can you quantify for us, you know, what percentage of COGS would the semiconductor chips comprise?
Manoj Jain, Chairman and Managing Director
Out of the BOM, bill of material, let us say bill of material is 100. So in that 100, around 20%-30% typically will be semiconductor chips, typically.
Answered
High priority
Why is Akash NG not in near-term pipeline and what is its timeline and size?
Asked by Harshit Patel, Equirus Securities
Management explained the delay and provided a timeline and estimated order size of INR 2,500-3,000 crore.
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Question
Why you haven't included Akash next generation in your near term or the next one-year pipeline? What would be the price and probable timeline for this large project?
Manoj Jain, Chairman and Managing Director
Akash NG, per se, is the next generation Akash, for which trials are already completed. Now, the process of AoN approval will be put up, and that's why we are not that much confident that by next year end we may get. It may spill over to next to next year.
Answered
High priority
What programs constitute the remaining INR 8,000 crore order inflow to meet INR 27,000 crore guidance?
Asked by Hardik Rawat, IIFL Capital
Management named specific programs (LCA, NGC, Shatrughat) and gave order sizes.
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Question
Now we're looking at a balance of around INR 8,000 crore of inflows that are to flow. Which systems, you know, in our expectations, what programs are going to constitute this, INR 8,000 crore of balance inflows?
Manoj Jain, Chairman and Managing Director
Mainly to LCA order from HAL, we are expecting very soon, anytime, because we have done conclusion of price also. That is our biggest order in this quarter for us. As I told you, NGC and the Shatrughat, these two we are hoping to get by this year itself.
Partial answer
Medium priority
Can you break down QRSAM project cost and quantify BEL's in-house content?
Asked by Kavish Parekh, BNK Securities
Management gave missile share but refused to quantify BEL's in-house portion, citing dependency on final order.
declined to quantify in-house sharedeferred to after order receipt
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Question
Could you please break down the total project cost into key components, and who will be the key suppliers for the same? For instance, missiles go to BDL. It would be great if you could quantify the same, and also mention what would be the order values for vehicles, launchers, et cetera, and how much of the content will be handled by BEL in-house?
Manoj Jain, Chairman and Managing Director
Missile order itself will be around, roughly around 30% of the total order value. ... remaining orders will be executed by BEL. ... around 70%, as you can say, will be executed by BEL with the other industry partners.
Answered
Medium priority
How does product mix impact margins given most orders are on nomination basis?
Asked by Mohit Pandey, Citi
Management explained how indigenization levels and value addition vary across products, affecting margins.
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Question
I understand most of the defense orders are currently on nomination basis. And my understanding was for most orders, margin profile would be similar, but so just wanted to understand how product mix impacts. Is it because indigenization levels are at different levels across different products?
Manoj Jain, Chairman and Managing Director
Yes, indigenization levels also are different. Some of the products we have IC content of around 50%-60%. In some of the projects, it is 80%. Some of them, even it is touching 90% also. ... So that's why, as told by the director of finance also, our product mix is really big.
Answered
Medium priority
What is the extent of non-linear provision in other expenses for 9M FY26?
Asked by Sumit Kishore, Axis Capital
Management provided specific numbers for other expenses and provision increase.
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Question
For the nine-month FY 2026 and nine-month FY 2025 period, could you please quantify what is the extent of nonlinear provision in the other expenses?
Manoj Jain, Chairman and Managing Director
Other expenses for the nine months has increased from INR 11.58 to INR 12.80, okay? In that, major reason is provision towards doubtful debts, which is around INR 110 crore is the increase.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Sales growth 19% in first nine months | 19% | 19% | Matches filing |
| EBITDA margin guidance 27% for FY26 | 27% | 30% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.