Bharat Electronics Q1 Results: Net profit jumps 23% to Rs 970 crore, beats estimate

Strong Start to FY25 for BEL

Bharat Electronics Limited (BEL), a leading state-owned aerospace and defence company, posted a strong set of numbers for the quarter ended June 30, 2025 (Q1 FY25), reporting a 23% year-on-year (YoY) increase in net profit at ₹970 crore. The results, announced on Sunday, July 28, significantly outpaced street estimates, driven by robust demand in defence electronics, efficient cost management, and a steady order book execution.

Revenue from operations stood at ₹4,180 crore, registering a 12% growth compared to ₹3,728 crore reported in Q1 FY24. The company’s EBITDA margin also improved to 25.3%, from 23.8% in the same period last year, reflecting enhanced operational efficiency.

Financial Highlights (Q1 FY25 vs Q1 FY24)

Key Growth Drivers

The management attributed the strong growth to the continued ramp-up in defence production and export opportunities. With a solid order inflow of ₹10,500 crore during the quarter, BEL’s order book remains healthy at ₹67,600 crore, ensuring strong revenue visibility in the coming quarters.

Bhanu Prakash Srivastava, CMD of BEL, stated,

“We are proud to deliver another strong quarter, exceeding expectations. Our continued investments in R&D and strategic collaborations are helping us address both domestic and international opportunities in defence and non-defence segments.”

BEL also benefited from increasing indigenisation in defence procurement, under the Government of India’s ‘Atmanirbhar Bharat’ initiative. High-value orders in radar systems, missile systems, and communication equipment contributed significantly to the Q1 performance.

Segment-Wise Performance

• Defence Segment: Contributed over 85% of the total revenue, registering a 13% YoY growth, primarily driven by large-scale deliveries in radar and communication systems to the Indian armed forces.

• Non-Defence Segment: Grew by 9%, supported by higher revenues from smart cities, homeland security, and civil aviation solutions.

BEL has been steadily expanding its non-defence vertical, which is now emerging as a promising revenue contributor, especially in the domains of artificial intelligence-based surveillance systems, EV components, and solar-powered solutions.

Analyst Take: BEL on a Strong Trajectory

Market analysts hailed the Q1 results as a positive surprise.
Ravi Khanna, Defence Sector Analyst at Motilal Oswal, remarked:

“BEL continues to remain a cornerstone of India’s defence modernization drive. The Q1 performance reaffirms the company’s strong execution capabilities and operational leverage. The improving EBITDA margins are a testament to internal efficiencies and value-added production.”

He added that BEL’s diversified order pipeline and foray into exports and non-defence technologies are expected to further support medium-term earnings growth.

Brokerage firm ICICI Securities has maintained a ‘Buy’ rating on BEL, with a target price of ₹215, citing visibility from the order book and consistent quarterly performance.

Market Reaction & Valuation

Following the results, BEL’s shares opened higher on the BSE on Monday and gained nearly 3.7% in early trade, touching a new 52-week high of ₹205. Investor sentiment remained upbeat due to the earnings beat and sustained growth momentum.

As of July 28, 2025, BEL is trading at a P/E of 27x on FY25 projected earnings, which remains attractive given the robust growth outlook, high RoE (~22%), and healthy cash reserves.

Government Policy Support

India’s increased focus on domestic defence production, with a budgetary allocation of over ₹1.7 lakh crore in FY25 for procurement from domestic industry, is expected to be a major tailwind for BEL. The government’s continued push for defence exports — which grew 32% YoY in FY24 — also opens up new markets for BEL's radar, naval systems, and opto-electronic products.

Investor Outlook

With a strong order book, diversified product portfolio, and continued policy tailwinds, BEL is well-positioned for consistent growth over the next few quarters. Analysts expect double-digit revenue and profit growth in FY25, with potential upside from international contracts and partnerships.

Retail and institutional investors alike view BEL as a stable long-term play in the Indian defence ecosystem. The stock is also part of the Nifty Defence Index, attracting additional flows from thematic funds and ETFs.

BEL’s Q1 FY25 results underscore its solid fundamentals and resilience amidst a complex macro environment. The combination of policy support, robust order inflow, and strong execution makes BEL a key beneficiary of India’s defence sector boom. As the company continues to innovate and expand into adjacent segments, it remains a top pick for investors seeking exposure to India’s strategic growth sectors.