BEL Q1 results today: What consensus estimates, target prices suggest

Defence PSU Bharat Electronics Ltd (BEL) is expected to report a net profit of Rs 1,086 crore for the June quarter on a net sales of Rs 5,108 crore during the same period. Ebitda for the Navratna firm is pegged at Rs 1,421 crore, Bloomberg consensus estimates showed. All eyes would be on updates on large orders, including QRSAM, Uttam radars, next-gen corvettes, P75I submarines, etc, as well as status AMCA, analysts said. 

Ahead of its quarterly results, analysts are mostly positive on BEL, with  the defence manufacturer having 28 'Buy' calls, one 'Hold' recommendation and three 'Sell' ratings. The consensus target price on the stock stands at Rs 490, which implies a 21 per cent potential upside ahead. 

For the June quarter, Nuvama Institutional Equities expects BEL to report modest execution growth of 12 per cent YoY, adding that the PSU's robust order backlog of Rs 74,000 provides strong medium-term revenue visibility. 

Margin is likely to remain structurally healthy at 28 per cent, said Nuvama, supported by operational efficiencies and increasing localisation. This brokerage sees net profit for BEL growing 9.7 per cent YoY to Rs 1,063 crore on 11.6 per cent YoY rise in revenue at Rs 4,930 crore. 

"On the order pipeline front, the Rs 30,000 crore QRSAM programme, for which the Indian Army has already floated the tender, is expected to materialise in the near term and could act as a key re-rating catalyst, along with sustained delivery of 27 per cent-plus operating profit margin," it said.

MOFSL expects BEL to report 15.6 per cent YoY rise in net sales at Rs 5,107.20 crore, led by the healthy execution of the order book. Net profit is seen rising 16.1 per cent YoY to Rs 1,124 crore It expects margins to remain healthy at 29 per cent, up 90 basis points (bps) YoY.

"The finalisation of orders, execution of the huge backlog, incremental share of exports, and further indigenization of modules and subsystems will remain key focus areas," MOFSL said.

Antique Stock Broking estimated BEL's Q1 net profit at Rs 1,053.90 crore, up 8.8 per cent YoY. Sales are seen rising 16.4 per cent YoY to Rs 5,139.20 crore. Ebitda is seen at Rs 1,440.70 crore, up 16.2 per cent YoY. 

Kotak Institutional Equities said BEL order inflows has declined 54 per cent YoY to Rs 3,500 crore in the June quarter, driven by an unfavorable base. "We model in 28.2 per cent Ebitda margin, down 100 bps YoY or up 30 bps QoQ for 1QFY27. Quarterly variations in margins are a function of product mix," it said.