Bharat Electronics Ltd Q1 FY2027 Concall Summary

Source transcript PDF: https://www.stockscans.in/document/s45fwb5jupalfjr9i5xf0yrx.pdf

Key Takeaways


Q1 Performance: The Mix Story

Manoj Jain: "Definitely yes. We have variability of 25% to 31% EBITDA margins based on the product mix in quarter-to-quarter etcetera, but at the year end, let me again assure you, we will cross 28%."

Order Inflow & The Pipeline

Manoj Jain: "Just CCS only is waiting for all of us and hopefully, when CCS meets, I think they will clear QRSAM. Our side all inputs, every activity is over from all of our side."

Execution & Program Updates

Manoj Jain: "In some program, somebody will be competitor, somebody will be L1, somebody will be L2. So, in this particular program, Adani became L1 and they are the system integrator for this program. But of course, subsystem level modules or capabilities of BEL will be made use of."

Margins, Costs & Indigenization

Damodar Bhattad: "We expect the employee cost to turnover to be in the range of around 12% even in the coming years also, which is now also 12% last year. In the coming years also, we expect it to be in the range of 12% employee cost to turnover percentage since the turnover will also be growing in good scale."

Exports & Non-Defence

Manoj Jain: "We want to finally aim at 10% of our revenues through export. So, we are working systematically to see that we reach that goal in next five years."

Guidance & Commitments

CommitmentSpecificsTimeline
Order inflow₹55,000+ crores including QRSAMFY27
QRSAM orderCCS approval pending; all BEL inputs completeBy September 2026
EBITDA marginCross 28% at year-endFY27 exit
Revenue growth15% or moreFY27
Shatrughat & Samaghat first ordersAround ₹9,000+ crores combinedWithin FY27 (3-6 months)
Shakti Phase 4 first orderAround ₹2,000 croresWithin FY27
HAMMER first orderAround ₹2,500+ croresWithin FY27
NGC or P75IAt least one with 100% probability; both >50%Pending CCS approval
AMCA RFP responseSubmission ready by mid-AugustDeadline 27th August 2026
Employee cost to turnover~12%FY27 and FY28
R&D spendMore than ₹2,200 croresFY27
CapexMore than ₹1,200 croresFY27
Indigenization targetZero import of modules/sub-modules (barring semiconductors)Within 5 years
Export revenue share10% of revenuesWithin 5 years

Key Metrics

MetricQ1 FY27
Revenue from operations₹5,533 cr, +25.27% YoY
Profit before tax₹1,403 cr, +8.81% YoY
Profit after tax₹1,048 cr, +8.17% YoY
EBITDA margin25.83%, vs 28% full-year guidance; variation due to product mix
Earnings per share₹1.43, vs ₹1.33 in Q1 FY26
Order book₹72,258 cr as on 1 Jul 2026
Order inflow₹3,754 cr in Q1
FY27 order inflow guidance₹55,000+ cr, including QRSAM
FY27 revenue growth guidance15%, may exceed by 0.5–1.5%
FY27 EBITDA margin guidance21–23%, management expects to cross 28% at year-end
Receivables days~140 days as on 30 Jun 2026, improved from 176 days as on 31 Mar 2026
Employee cost to turnover~12%, expected to remain at this level through wage revision cycle
R&D budget for FY27>₹2,200 cr
Capex guidance for FY27>₹1,200 cr
Export order book\$46.5 mn
Export internal guidance for FY27~\$30 mn