BEL Q2 results: Muted profit growth likely; what stock investors should watch
BEL has been consistently beating Street’s estimate and its own guidance on operating profit margin: 28.1 per cent OPM reported in Q1FY26 against 27 per cent guidance.
- Oct 31, 2025,
- Updated Oct 31, 2025 10:28 AM IST
Defence player Bharat Electronics Ltd (BEL) s likely to report a muted net profit growth for the September quarter on a double-digit growth in sales. Any update on orders for subsystems and 97 LCA MK1A aircraft, execution of orders for LRSAM and EW projects, incremental share of exports, and working capital cycle, will be keenly tracked.
Ahead of its earnings, BEL shares were trading 1.05 per cent higher at Rs 414.25 on BSE.
Antique Stock Broking expects BEL to report 3 per cent YoY rise in net profit at Rs 1,129 crore compared with Rs 1,091.30 crore in the same quarter last year. This is even as the brokerage expects sales for BEL to jump 18 per cent YoY to Rs 5,408 crore from Rs 4,583.40 crore in the corresponding quarter last year. Ebitda is seen rising 5 per cent YoY to Rs 1,462.70 crore.
The brokerage said revenue for its defence universe to register 17 per cent YoY growth led by robust execution of order book, but operating margin is expected to decline by 160 bps for the quarter, mainly impacted by softer quarterly margins for BEL, HAL, MDL and Cochin Shipyard.
Nuvama sees a 6.6 per cent YoY rise in Q2 net profit at Rs 1,163 crore. "We estimate a pickup in execution (versus only 5 per cent YoY growth in Q1FY26 due to geopolitical issues) on the back of Rs 75,000 crore backlog with margins comfortably attainable at 28 per cent levels driven by higher operational efficiency and localisation levels," it said.
Nuvama said BEL has been consistently beating Street’s estimate and its own guidance on operating profit margin (28.1 per cent OPM reported in Q1FY26 against 27 per cent guidance). It remains the chief beneficiary of defence electronics across the sector value chain as better visibility of elevated OPMs on higher indigenisation efforts, cost efficiencies and better product mix provide us comfort, not to forget a Rs 1 lakh crore-plus pipeline over next 18–24 months, the domestci brokerage said.
MOFSL sees Q2 net profit at Rs 1,117.80 crore, up 2.4 per cent YoY. Net sales for the quarter is seen at Rs 5,258 crore, up 14.7 per cent. This brokerage sees Ebitda at Rs 1,440.80 crore, up 3.8 per cent.
"We expect revenue growth of 15 per cent YoY, led by the healthy execution of the order book of Rs 74,900 crore. We expect margins to contract 290 bps YoY to 27.4 per cent on a high base. The status of EoI for AMCA, finalization of emergency procurement-related orders, execution of the huge backlog, and further indigenization of modules and subsystems will remain key areas of focus," it said.
Defence player Bharat Electronics Ltd (BEL) s likely to report a muted net profit growth for the September quarter on a double-digit growth in sales. Any update on orders for subsystems and 97 LCA MK1A aircraft, execution of orders for LRSAM and EW projects, incremental share of exports, and working capital cycle, will be keenly tracked.
Ahead of its earnings, BEL shares were trading 1.05 per cent higher at Rs 414.25 on BSE.
Antique Stock Broking expects BEL to report 3 per cent YoY rise in net profit at Rs 1,129 crore compared with Rs 1,091.30 crore in the same quarter last year. This is even as the brokerage expects sales for BEL to jump 18 per cent YoY to Rs 5,408 crore from Rs 4,583.40 crore in the corresponding quarter last year. Ebitda is seen rising 5 per cent YoY to Rs 1,462.70 crore.
The brokerage said revenue for its defence universe to register 17 per cent YoY growth led by robust execution of order book, but operating margin is expected to decline by 160 bps for the quarter, mainly impacted by softer quarterly margins for BEL, HAL, MDL and Cochin Shipyard.
Nuvama sees a 6.6 per cent YoY rise in Q2 net profit at Rs 1,163 crore. "We estimate a pickup in execution (versus only 5 per cent YoY growth in Q1FY26 due to geopolitical issues) on the back of Rs 75,000 crore backlog with margins comfortably attainable at 28 per cent levels driven by higher operational efficiency and localisation levels," it said.
Nuvama said BEL has been consistently beating Street’s estimate and its own guidance on operating profit margin (28.1 per cent OPM reported in Q1FY26 against 27 per cent guidance). It remains the chief beneficiary of defence electronics across the sector value chain as better visibility of elevated OPMs on higher indigenisation efforts, cost efficiencies and better product mix provide us comfort, not to forget a Rs 1 lakh crore-plus pipeline over next 18–24 months, the domestci brokerage said.
MOFSL sees Q2 net profit at Rs 1,117.80 crore, up 2.4 per cent YoY. Net sales for the quarter is seen at Rs 5,258 crore, up 14.7 per cent. This brokerage sees Ebitda at Rs 1,440.80 crore, up 3.8 per cent.
"We expect revenue growth of 15 per cent YoY, led by the healthy execution of the order book of Rs 74,900 crore. We expect margins to contract 290 bps YoY to 27.4 per cent on a high base. The status of EoI for AMCA, finalization of emergency procurement-related orders, execution of the huge backlog, and further indigenization of modules and subsystems will remain key areas of focus," it said.