Defence stock in focus after receiving multiple work orders worth ₹596 Cr

Synopsis: Bharat Electronics Limited (BEL) shares rose 2% after securing new orders worth ₹569 crore, spanning communication, medical, and fire safety equipment.

The shares of the PSU stock specializing in manufacturing advanced electronic products and systems for India’s defence forces (Army, Navy, Air Force) have been in focus after receiving multiple work orders worth Rs. 596 Crores.

With a market capitalization of Rs. 2,95,826.75 crores on Friday, the shares of Bharat Electronics Ltd jumped upto 1.96 percent, reaching a high of Rs. 405.50 per share compared to its previous closing price of Rs. 397.70 per share.

What Happened 

Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, engaged in manufacturing advanced electronic products and systems for India’s defence forces (Army, Navy, Air Force) has has received new orders worth Rs. 569 crore since its last update on 29th December 2025. 

These orders mainly include communication equipment, medical electronics, instant fire detection and suppression systems, as well as upgrades, spares, and related services. This reflects BEL’s continued growth in defence and related technology sectors.

The company’s revenue rose by 25.78 percent from Rs. 4,605 crore in September 2024 to Rs. 5,792 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 1,093 crore to  Rs. 1,287 crore during the same period.

The company demonstrates strong financial performance with a ROCE of 38.9% and a ROE of 29.2%, reflecting efficient capital use and solid profitability. It is almost debt-free and has achieved impressive profit growth, with a 5-year CAGR of 23.8%.

Additionally, the company maintains a healthy dividend payout of 39.1% and has a consistent 3-year ROE track record of 26.4%. Its stock P/E of 51.8 compares favorably to the industry P/E of 60.6, indicating relative valuation strength.

Bharat Electronics Limited (BEL) is a premier Indian defense electronics company, a Navratna PSU under the Ministry of Defence, established in 1954 to produce cutting-edge electronic systems for India’s armed forces, including radars, communication, naval systems, and missile components, while also diversifying into smart cities, space, cyber security, and medical electronics, playing a crucial role in India’s self-reliance in strategic electronics. 

Order Book Overview

The order book has grown from Rs. 74,453 crore as of 1 October 2025 to Rs. 75,600 crore by November. Meanwhile, orders won in FY26 YTD have increased from Rs. 12,539 crore till 1 October to Rs.  14,750 crore by November.

The orders include major contracts such as LRSAM worth about Rs 5,000 crore, electronic fuses at Rs 4,500 crore, the BMP-2 upgrade at Rs 3,000 crore, and the Akash Army project at Rs 2,700 crore. Together, the top seven orders account for nearly Rs 25,000 crore, out of the total order book.

Exports currently contribute 3–4% of turnover, with a target of 5% in 2–3 years and 10% in the long term, supported by an export order book of approximately USD 326 million. On geographic concentration, management noted no reliance on any single country, including Myanmar, emphasising that all markets are important, though no specific revenue cap was provided.

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