Q2 2026 Bharat Electronics Ltd Earnings Call Transcript
Key Points
- Bharat Electronics Ltd (BOM:500049) reported a significant revenue growth of 15.92% in H1 FY26, reaching INR10,180 crores compared to INR8,782 crores in the same period last year.
- Profit before tax increased by 21.51% to INR3,023 crores, and profit after tax rose by 20.77% to INR2,255 crores, indicating strong financial performance.
- The company's EBITDA margin improved to 30.15% from 27.26% in the previous year, showcasing enhanced operational efficiency.
- The order book position as of October 1, 2025, stood at INR74,453 crores, with new orders acquired totaling INR14,750 crores, reflecting robust demand.
- Bharat Electronics Ltd (BOM:500049) is confident in achieving its guidance of more than 27% EBITDA margin and INR27,000 crores in order inflow, excluding QRSAM, for FY26.
- The execution timeline for the QRSAM order is expected to be five to six years, which may delay revenue realization from this significant contract.
- The company's order backlog has not grown significantly over the past 18 months, despite persistent revenue growth, indicating potential challenges in securing new large-scale contracts.
- Export revenues currently contribute only 3% to 4% of total turnover, with a long-term goal of reaching 10%, suggesting a need for increased focus on international markets.
- The company faces challenges related to component availability and obsolescence, which could impact timely delivery and execution of orders.
- There is uncertainty regarding the impact of the 8th pay commission on the company's financials, as it will not directly apply to public sector employees like those at Bharat Electronics Ltd (BOM:500049).
Ladies and gentlemen, good day, and welcome to the Bharat Electronics Limited Q2 FY26 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Vikash Singh from ICICI Securities. Thank you, and over to you, sir.
Good evening, everyone. On behalf of ICICI Securities, I welcome you all on Bharat Electronics Q2 FY26 results conference call. I would like to thank the management to give us the opportunity to host them. From the management side, we have with us Mr. Manoj Jain, Chairman and Managing Director; Mr. Damodar Bhattad S., Director, Finance, and CFO; and his team.
Without taking any much time, I hand it over to Manoj-ji for his operating remarks. Over to you, sir.
Thank you. Good afternoon, everybody. So here is a financial highlight for H1, means up to Q2 for financial year '25-'26. So this H1, we have achieved revenue from
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