Bharat Electronics (500049) Q2 25/26 earnings summary

Executive summary

• Revenue from operations for H1 FY26 rose 15.92% year-over-year to INR 10,180 crore, with profit before tax up 21.51% and profit after tax up 20.77%.

• Revenue from operations grew 25.75% year-over-year in Q2 FY26, reaching ₹5,763.65 crore.

• Order book as of October 1, 2025, stood at INR 74,453 crore, increasing to INR 75,600 crore by the date of the call.

• Orders acquired in FY26 so far total INR 14,750 crore, with a strong pipeline of large defense projects expected.

Financial highlights

• Standalone revenue for H1 FY26 was ₹10,18,048 lakh, up from ₹8,78,218 lakh in H1 FY25.

• Standalone profit before tax for H1 FY26 was ₹3,02,354 lakh, up from ₹2,48,822 lakh in H1 FY25.

• Standalone profit after tax for H1 FY26 was ₹2,25,526 lakh, up from ₹1,86,741 lakh in H1 FY25.

• Top seven orders constitute INR 25,000 crore of the order book, including LRSAM, electronic fuses, BMP-2 upgrade, and Akash Army.

• Major executed programs in H1 include LRSAM, Himshakti, battle surveillance systems, Akash Army, LCA Mark 1 avionics, LINK U2 fire control, and Shakti EW system.

Outlook and guidance

• Confident of achieving more than 27% EBITDA margin for FY26, with product mix stability expected between H1 and H2.

• Order inflow guidance of INR 27,000 crore (excluding QRSAM) for FY26, with a total of INR 57,000 crore including QRSAM.

• Revenue growth guidance of 15%+ and R&D investment of over INR 1,600 crore.

• CapEx planned at over INR 1,000 crore, with a defense to non-defense business ratio of 90:10.

• Management stated that ongoing conflicts in Israel have no material financial impact as of the reporting date.