BEL shares up 44% year-to-date; Geojit sees 19% more upside; check target price

Shares of defence heavyweight Bharat Electronics Ltd (BEL) continue to command investor attention, backed by strong execution and a massive order pipeline. The stock closed 0.61 per cent higher at Rs 423.40 on the BSE, extending its strong run in 2025, during which it has already surged 44 per cent.

Geojit Investments reiterated its ‘Buy’ call on BEL with a fresh target of Rs 504, signalling about 19 per cent further upside from current levels. The brokerage attributes this optimism to robust execution and multi year growth visibility.

Geojit underscores BEL’s leadership in the defence electronics landscape, pointing out that it is a Navaratna enterprise with a 37 per cent market share in Indian defence electronics. With strengths across radar and weapon systems, defence communication, and electronic warfare, the company remains well placed to benefit from the government's accelerating defence modernisation agenda.

The brokerage’s confidence is underpinned by BEL’s strong Q2FY26 scorecard. The company posted robust revenue growth of 26 per cent YoY, aided by progress in major programmes such as LRSAM, Himshakti and LCA avionics. Net profit climbed 18 per cent year-on-year, coming in ahead of expectations, it said.

Although elevated material costs weighed on gross margins, Geojit noted that operating efficiencies cushioned the impact, helping BEL sustain an EBITDA margin of 29.4 per cent. Geojit also believes BEL’s "EBITDA margin guidance of >27 per cent appears achievable," supported by an improving product mix and ongoing cost optimisation.

Order book visibility

A major driver for sentiment is BEL’s robust order visibility. The report highlights that the current order backlog is Rs. 74,453 crore, equivalent to 2.6 times the brokerage’s FY26 sales estimate, ensuring a strong revenue pipeline over the medium term.

The street is also watching out for fresh defence mandates. Geojit expects the much-awaited QRSAM order is expected by FY26-end, besides progress on large opportunities including Next Generation Corvette (NGC) subsystems and additional LCA avionics work.

Future bets 

BEL is simultaneously widening its global play. The company has set an exports target is 10 per cent of turnover in the next 3 years, up sharply from its current 3–4 per cent contribution. Longer-term catalysts such as advanced AMCA and UAV platforms further strengthen the growth runway.