Bharat Electronics (500049) Q3 24/25 earnings summary

Executive summary

• Nine-month turnover for FY25 rose 23.4% year-over-year to INR 14,174 crore, with profit before tax up 43.9% to INR 4,242 crore and profit after tax up 42.3% to INR 3,183 crore.

• Q3 FY25 PAT grew 47% year-over-year to ₹1,316.06 crore, with Q3 turnover up 36.97% to ₹5,643.25 crore.

• EBITDA margin improved to 28.07% from 23.67% year-over-year, and EPS increased to INR 4.36 from INR 3.06.

• Order book as of January 1, 2025, stands at INR 71,100 crore.

Financial highlights

• Major executed orders in Q3 included LRSAM, Weapon Locating Radar, IACCS, Shakti EW, ADCRS, Akash Prime, and a civilian CBIC project.

• Non-defense and export revenue contributed 11% in Q3 (8% non-defense, 3% export).

• Gross margin for the nine months was 44.5%, within the guided range of 42%-44%.

• Provision of INR 600 crore was made for liquidated damages and penalties in other expenses this quarter.

• Standalone Q3 FY25 revenue was ₹5,75,612 lakh, with standalone PAT at ₹1,31,456 lakh.

Outlook and guidance

• Revenue growth guidance for FY25 is retained at 15%+, with EBITDA margin expected between 23%-25%.

• Order inflow guidance for FY25 is INR 25,000 crore, with confidence in achieving this by year-end.

• Large pipeline orders for FY26 include QRSAM (INR 25,000-30,000 crore) and NGC/MRSAM (INR 14,000-15,000 crore), both expected before March 2026.

• No material financial impact from ongoing Israel conflicts as of reporting date.