Defence stock in focus after receiving ₹776 Cr for counter UAV systems and other defense equipment

Synopsis: Bharat Electronics Ltd secures Rs. 776 crore in new orders, including Counter UAV systems, Software Defined Radios, anti-drone solutions, and communication equipment, reinforcing its leadership in advanced defence electronics and support for India’s defence modernisation.

This company manufactures and supplies electronic equipment and systems to the defence sector and also has a limited presence in the civilian market is now in the spotlight after securing a major order for Defence Equipments.

With market capitalization of Rs. 2,85,995 cr, the shares of Bharat Electronics Ltd are currently trading Rs. 390.85 per share, making a high of Rs. 392.45 in today’s session, up from its previous close of Rs. 389.40 per share.

About the order

Bharat Electronics Limited (BEL), the Navratna Defence PSU under the Ministry of Defence, has announced the receipt of additional orders totaling Rs. 776 crore. This fresh influx of orders underscores BEL’s continued leadership in providing advanced defence electronics solutions to the Indian armed forces and other strategic sectors.

The new orders span a wide range of cutting-edge defence technologies and systems. Key highlights include indigenous Counter Unmanned Aerial Systems (SAKSHAM), Software Defined Radios, Anti-Drone Systems, and a variety of communication and avionics equipment. The orders also cover gun control systems, weapon control systems, medical electronics, security software, masts, and various components, along with upgrades, spares, and associated services.

These contracts reflect BEL’s strong position as a trusted supplier of high-technology defence solutions, showcasing its ability to deliver integrated electronic systems for modern warfare and strategic security requirements. The diverse portfolio of orders demonstrates BEL’s commitment to supporting India’s defence modernization and technological self-reliance initiatives. As of October, the order book stands at Rs. 75,600 cr.

About the company

Bharat Electronics Limited (BEL) is a Navratna Defence Public Sector Undertaking under the Ministry of Defence, India, specializing in the design, development, and manufacture of advanced defence electronics and communication systems. BEL produces a wide range of products including radars, weapon control systems, electronic warfare equipment, communication systems, and medical electronics. 

The company reported strong year-on-year growth for Q2 FY26. Sales rose by 26% to Rs. 5,792 crore, up from Rs. 4,605 crore in Q2FY25. EBITDA increased by 22% to Rs. 1,702 crore, compared with Rs. 1,400 crore a year ago. Net profit grew 18% to Rs. 1,287 crore, up from Rs. 1,093 crore, while EPS rose 18% to Rs. 1.76 from Rs. 1.49 in the same period last year.

It demonstrates robust financial health, with a ROCE of 38.9% and ROE of 29.2%, compared to an industry PE of 60.1 and a stock P/E of 50.1. The company is almost debt-free and has delivered strong profit growth of 23.8% CAGR over the last five years. It maintains a solid 3-year ROE track record of 26.4% and a healthy dividend payout of 39.1%, reflecting consistent profitability and shareholder returns.

Written by Manideep Appana

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