Defence Stock BEL Q1FY26 Results: BEL Share Price Declines Over 2%; Here's Why

Bharat Electronics Ltd (BEL) announced robust financials for Q1 of FY26, led by better execution and favourable product mix. The company is likely to post strong year-on-year growth in revenue and profitability, though sequential trends appear weaker. Despite promising figures, BEL shares touched their intraday low, reflecting caution ahead of result expectations.

Strong Year-on-Year Growth in Revenue and Profit

As per reports, for Q1 FY26, BEL’s revenue is expected to grow 15% YoY to ₹4,812 crore, supported by healthy execution of defence contracts and an improved product portfolio. EBITDA rose by 26% to ₹1,178 crore, with margins expanding by 218 basis points year-on-year. Net profit saw a sharp 22% rise compared to the previous year, reflecting improved operating leverage and disciplined cost control.

Sequential Growth Reflects Seasonal Nature of Business

While BEL’s annual growth metrics were strong, a quarter-on-quarter comparison reveals a 47% decline in revenue and a 58% drop in EBITDA. Margins narrowed by over 6 percentage points, highlighting the lumpy execution cycle in the defence sector. These figures align with typical seasonality, where large projects ramp up toward the year-end.

Read More: Bharat Electronics Secures ₹1,640 Crore Order for Air Defence Fire Control Radars from Indian Army!

Order Inflows and Pipeline Remain Robust

BEL reported fresh order inflows of ₹7,348 crore since April 1, 2025, which is 27% of its full-year target of ₹27,000 crore. This target does not include a substantial ₹30,000 crore Quick-Reaction Surface-To-Air Missiles deal. The pipeline over the next 18 to 24 months stands at an impressive ₹1 lakh crore, with potential from major defence initiatives like QRSAM, LRSAM and electronic warfare projects.

Focus on Export Growth and Working Capital Efficiency

BEL continues expanding its export portfolio and improving working capital management. The company’s order book, as of April 1, 2025, stood at ₹71,650 crore. Timely project deliveries and an increasing share of high-value systems have helped maintain operational efficiency.

Bharat Electronics Share Price Performance

On July 28, 2025, Bharat Electronics share price opened at ₹395.20 on NSE, near the previous close of ₹395.20. During the day, it surged to ₹396.35 and dipped to ₹383.30. The stock is trading at ₹385.00 as of 2:34 PM. The stock registered a significant decline of 2.58%.

Over the past week, it has declined by 4.49%, over the past month, it has declined by 8.66%, and over the past 3 months, it has moved up by 26.21%.

Conclusion

Despite sequential headwinds, BEL’s Q1 FY26 results reflect a firm footing in execution and strategic positioning. With strong order inflows and a promising project pipeline, BEL’s long-term growth outlook appears solid even as the stock eases amid investor caution.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.