Bharat Electronics (500049) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 revenue from operations rose 25.3% year-over-year to INR 5,533 crore, with Profit Before Tax up 8.8% to INR 1,403 crore and Profit After Tax up 8.2% to INR 1,048 crore.

• EBITDA margin for Q1 stood at 25.83%, with EPS increasing to INR 1.43 from INR 1.33 year-over-year.

• Order book as of July 1, 2026, was INR 72,258 crore.

• Management reaffirmed annual guidance: 15% revenue growth, 28% EBITDA margin, and INR 55,000 crore+ order inflow (including QRSAM).

Financial highlights

• Receivables improved to 140 days as of June 30, down from 176 days at March 31.

• Other expenses declined due to lower provisions for liquidated damages compared to the previous year.

• Raw material cost increase attributed to product mix, not input cost inflation.

• R&D spend targeted above INR 2,200 crore for the year; CapEx guidance above INR 1,200 crore.

• Standalone and consolidated financials reviewed and approved by statutory auditors with unmodified conclusions.

Outlook and guidance

• Management confident of meeting/exceeding 15% revenue growth and 28% EBITDA margin for FY 2027.

• Order inflow guidance of INR 55,000 crore+ for FY 2027, with QRSAM expected by September.

• Export revenue targeted to reach 10% of total in the next five years, with $300 million expected this year.

• Employee cost to turnover ratio expected to remain at 12% despite upcoming wage revision.

• No material financial impact from ongoing conflicts in Israel as per current contracts and agreements.