Bharat Electronics (500049) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 revenue from operations rose 5.19% year-over-year to INR 4,417 crore, with profit before tax up 24.28% to INR 1,289 crore and profit after tax up 24.87% to INR 969 crore.

• EBITDA margin improved to 29.86% from 22.82% last year, and EPS increased to INR 1.33 from INR 1.06.

• Order book as of July 1, 2025, stood at INR 74,859 crore, with an additional INR 2,600 crore in new orders received after that date.

Financial highlights

• Standalone total income for Q1 FY26 was INR 4,58,045 lakh, up from INR 4,19,877 lakh in Q1 FY25.

• Standalone profit for the period was INR 96,913 lakh, compared to INR 77,614 lakh in Q1 FY25.

• Consolidated revenue from operations was INR 4,43,974 lakh, up from INR 4,24,357 lakh year-over-year.

• Consolidated profit for the period was INR 96,905 lakh, up from INR 79,128 lakh in Q1 FY25.

• Revenue growth was impacted by a shortfall of INR 200+ crore due to geopolitical issues, particularly the Israel-Iran conflict, but is expected to be compensated in Q2.

Outlook and guidance

• Revenue growth guidance for FY2026 is above 15%, with EBITDA margin above 27%.

• Order inflow target is INR 27,000+ crore, potentially exceeding INR 30,000 crore if QRSAM order is received in Q4.

• R&D investment planned at INR 1,600+ crore, CapEx at INR 1,000+ crore, and export target at $120+ million.

• Medium-term revenue growth of 15-17.5% is expected to be sustainable, supported by a strong order pipeline.

• Final dividend of 90% (INR 0.90 per share) recommended for FY25, in addition to an interim dividend of 150% (INR 1.50 per share), subject to shareholder approval.