Bharat Electronics Ltd Q4 FY2026 Concall Summary

Source transcript PDF: https://www.stockscans.in/document/k9sarbiwat29xvvswqznb4t8.pdf

Key Takeaways


FY27 Guidance & Growth Levers

Manoj Jain: "We have seen we are highly optimistic for the next 5 years, at least where our main, main leads are, and we are confident we will have higher trajectory only, not at all a lower trajectory."

Order Book & Key Program Pipeline

Manoj Jain: "We are still fully optimistic that before June end, we may get this order. There is only 5% to 10% chance that it may slip to July."

Indigenization & Margins

Manoj Jain: "The more faster we do indigenization, the more profitable all of us will be. That much I can assure you, it is only and only indigenization, which has really helped all of us."

Capex & Infrastructure Build-out


New Business Vectors

Manoj Jain: "Much more certainty, I can tell you about our own indigenous program or our own Indian programs. But in export, that type of certainty is not there."

Working Capital & Cash Flow


Guidance & Commitments

CommitmentSpecificsTimeline
Revenue growthMore than 15%FY27
EBITDA marginMore than 28%FY27
Order inflowMore than ₹55,000 cr, including QRSAMFY27
QRSAM contract signingBy June-end 2026; 5–10% chance of slipping to JulyJune/July 2026
QRSAM first deliveryFirst production model within 18 months of contract signing~December 2027
CapexMore than ₹1,200 cr (20%+ growth)FY27
R&D investmentAround ₹2,200 crFY27
NGC subsystemsAt least 50% of subsystems expectedFY27
P-75I electronics orderSome order expected this yearFY27
Export revenue shareIncrease from 4–5% to more than 10%Over 4–5 years
Non-defense revenue shareIncrease from 8–10% to 15–20%No fixed date
Indigenous contentMaintain 80–85% averageNext 2–3 years

Key Metrics

MetricQ4 FY26
Revenue from operations₹27,480 cr (FY26), +16% YoY
Profit before tax₹8,075 cr (FY26), +14% YoY
Profit after tax₹6,048 cr (FY26), +14% YoY
EBITDA margin30% (FY26), vs 29% in FY25
Earnings per share₹8.27 (FY26), vs ₹7.23 in FY25
Order book₹73,882 cr as on 01/04/2026
Order inflow₹30,045 cr (FY26)
Gross profit margin~49%, improved over the past 2–3 years
Revenue growth guidance (FY27)>15%
EBITDA margin guidance (FY27)>28%
Order inflow guidance (FY27)>₹55,000 cr, including QRSAM
R&D investment target (FY27)~₹2,200 cr
Capex target (FY27)>₹1,200 cr, +20% YoY growth
Capex incurred (FY26)₹900 cr
Customer advances~₹12,500 cr as on 31/03/2026
Current ratio1.97 as on 31/03/2026, vs 1.76 in FY25
Receivable days140–150 days, consistent over the past 4–5 years
Operating cash flow~₹1,490 cr (FY26), conversion ratio ~19% of EBITDA
Non-defense revenue share8–10% currently; target 15–20% over time
Export revenue share4–5% currently; target >10% over 4–5 years
Indigenous content80–85% on average across product portfolio
Semiconductors as % of material cost17–19% of Value of Production
Major order book componentsElectronic fuses ₹4,300 cr (7 years), LRSAM ₹3,500 cr, LCA ₹3,200 cr, BMP-II upgrade ₹2,800 cr, Ashwini ₹2,460 cr, Mi-17 V5 ₹2,200 cr, spare services/misc ₹2,500 cr
Export order book\$9.6 cr (USD) for this year and subsequent years