BEL Q1: consolidated PAT ₹1,055 Cr up just 9% YoY as margins compress on revenue +25%
PAT +8.82% YoY · revenue +24.94% · margins compressing · inline vs street
₹5,546.98 Cr
+24.94% YoY
₹1,054.53 Cr
+8.82% YoY
18.45%
-2.6pp YoY
₹1.44
Bharat Electronics opened FY27 with consolidated revenue of ₹5,546.98 Cr, up 24.9% YoY (₹4,439.74 Cr) and comfortably ahead of its own >15% FY27 growth guidance, but the bottom line lagged badly: consolidated PAT rose only 8.8% YoY to ₹1,054.53 Cr (₹969.05 Cr a year ago), and EPS inched to ₹1.44 from ₹1.33. Against street, it was a mixed print — revenue beat the ~₹5,108 Cr Bloomberg consensus by ~8%, while PAT of ~₹1,055 Cr came in a touch below the ~₹1,086 Cr expected. Standalone tells the same story (PAT ₹1,048.33 Cr, +8.2%), so there is no material divergence between the two bases.
Q1 FY-2027 vs prior quarters
The gap between 25% topline growth and 9% profit growth is a pure margin story. Net profit margin compressed to ~19.0% from ~21.8% a year ago, and standalone PBT margin fell to 25.4% from 29.2%. The squeeze sits on the input line: cost of materials consumed jumped to ₹3,035.88 Cr (standalone), or ~55% of revenue, versus ~44% in the year-ago quarter — consistent with the rupee's slide to a record ~₹96.8/USD in May 2026 lifting imported-component costs. Standalone operating EBITDA margin worked out to ~25%, below management's >28% FY27 guide, though Q1 is seasonally BEL's weakest execution quarter and the sequential drop (revenue −46%, PAT −53% vs the ₹10,224 Cr / ₹2,226 Cr Q4) is the usual defence-PSU back-loading, not a deterioration.
The stock went into the print at ₹406.8, down 0.1% over the past month of trading.
What the summary numbers don't show
PBT ₹1,396.25 Cr (consol) up 8.9% YoY — tax ₹352.35 Cr; associate profit share ₹10.63 Cr; two subsidiaries posted a ₹4.64 Cr net loss
Bharat Electronics Limited (BEL) provided a positive outlook for FY27, retaining a revenue growth target of over 15% and expecting EBITDA margins to exceed 28%. The company anticipates order inflows of more than INR 55,000 crores, including the expected QRSAM order. Significant investments are planned for R&D (INR 2,20
— This quarter: met
Against the last concall, where management was confident/bullish and reiterated >15% revenue growth, >₹55,000 Cr of FY27 order inflows (incl. QRSAM) and a >28% EBITDA margin, this quarter confirms the growth leg but leaves the margin promise to be recovered over H2. The order book stood at ₹72,258 Cr as on 1 July 2026, backed by ₹1,081 Cr (22 Jun) and ₹572 Cr (13 Jul) of fresh wins, keeping the multi-year visibility intact. The board also cleared a proposal to raise authorised capital from ₹750 Cr to ₹1,000 Cr, alongside two marketing-director retirements during the quarter. No exceptional items on either side, so reported and underlying growth are the same ~9%.
W1
Margin recovery toward the >28% FY27 EBITDA guide — Q1 landed at ~25%; watch whether H2 execution and easing input costs close the gap
W2
Order inflows vs >₹55,000 Cr FY27 guidance (incl. QRSAM) against the ₹72,258 Cr book as on 1 Jul 2026
W3
Cost of materials consumed trend — at ~55% of revenue vs ~44% YoY; the swing that capped PAT at +9% despite +25% revenue
In ₹ Lakh, converted to ₹ Cr. No exceptional items either period. Consolidated PAT ₹1,054.53 Cr = PBT ₹1,396.25 Cr − tax ₹352.35 Cr + ₹10.63 Cr associate share; NCI negligible (₹0.19 Cr). Consolidated other income read as 16,956 Lakh (ties total income 5,71,654). Order book ₹72,258 Cr as on 1 Jul 2026.
Informational and educational content only. Not investment advice.