BEML is no longer simply a defence and heavy-equipment manufacturer. The state-owned company is building a broader growth story around railways, metro systems, defence and mining, with a record order book and a sizeable pipeline across its businesses, according to Antique Stock Broking.

In its latest report, “India Defence Sector – Ordering to Gain Momentum,” the brokerage firm said BEML ended FY26 with a record Rs 15,890 crore order book, equivalent to 3.7 times its trailing-12-month revenue.

The company could get another major boost from India’s expanding railway infrastructure spending, with BEML planning to participate in a mega tender for 2,856 Vande Bharat suburban coaches, estimated to be worth Rs 21,000 crore. However, the opportunity is still at the bidding stage and is not a confirmed BEML order.

Defence remains a major part of BEML’s business

Established in 1964, BEML has more than six decades of experience manufacturing products across Rail & Metro, Defence & Aerospace, and Mining & Construction. The company operates through 14 strategic business units and two micro-SBUs and has supplied products to customers across 73 countries, according to the brokerage report.

Despite its expanding railway business, Defence & Aerospace remains one of BEML’s largest revenue segments.

The brokerage’s segmental breakdown shows Mining & Construction contributed 41% of FY26 revenue, followed by Defence & Aerospace at 35% and Rail & Metro at 24%. The corresponding figures for FY25 were 54% for Mining & Construction, 27% for Defence & Aerospace and 19% for Rail & Metro.

This means the railway business has been gaining share, but it has not yet overtaken defence and aerospace in BEML’s reported revenue mix.

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Vande Bharat suburban coaches could be a major opportunity

The biggest potential catalyst on the rail side is BEML’s planned participation in Mumbai Rail Vikas Corporation’s (MRVC) mega tender. The tender involves the supply and maintenance of 2,856 Vande Bharat suburban coaches, with an estimated value of Rs 21,000 crore.

For BEML, the opportunity fits into its growing focus on railway and metro mobility products. The brokerage firm described BEML as a strong play on the mobility capital expenditure planned by Indian Railways and metro networks, particularly because of its positioning in metro coaches and Vande Bharat sleeper coach manufacturing.

Importantly, the Rs 21,000 crore figure represents the estimated value of the tender and not an order already secured by BEML.

Defence pipeline remains sizeable

While rail presents a major opportunity, BEML continues to have a significant defence pipeline. According to the firm, management has visibility of Rs 20,000 crore worth of defence orders over the next five years.

The report specifically identifies an Arjun Tank ARV order worth Rs 6,000 crore, an APV tender involving 5,000 vehicles worth Rs 4,000 crore, and an HMV order worth Rs 800 crore. The report, however, separately gives the overall defence opportunity as Rs 20,000 crore, while the three programmes listed add up to Rs 10,800 crore. Management is also targeting Rs 2,000 crore of defence revenue in the near term.

The brokerage estimates that the narrower defence contribution could increase from around 15% in FY24 to about 21% by FY28E.

That figure is separate from the report’s broader Defence & Aerospace segment contribution of 35% in FY26.

Record order book provides visibility

BEML’s record order book is central to the brokerage’s positive view on the company. The Rs 15,890 crore order backlog at the end of FY26 was equivalent to around 3.7 times trailing-12-month revenue, providing substantial revenue visibility.

The company is also increasing its investment in capacity and capabilities. BEML’s capital expenditure reached an all-time high of Rs 380 crore in FY26, including Rs 190 crore of capital work in progress.

Earnings growth expected to accelerate

The brokerage firm expects BEML’s revenue to grow at a 17% CAGR between FY26 and FY28E, while earnings are projected to grow at a much faster 99% CAGR over the same period. The brokerage estimates net revenue to rise from Rs 4,350.5 crore in FY26 to Rs 5,982.9 crore in FY28E, before reaching Rs 6,973.1 crore in FY29E.

Adjusted profit after tax is projected to increase from Rs 147.5 crore in FY26 to Rs 586.2 crore in FY28E, with a further rise to Rs 712.5 crore in FY29E.

Profitability is also expected to recover sharply after a weak FY26. EBITDA margin, which stood at 6.9% in FY26, is projected to rise to 13.2% in FY27E and 14.8% in FY28E, reaching 15.3% in FY29E.

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From defence equipment to mobility

BEML’s evolving business mix shows the company’s broader positioning within India’s infrastructure and defence spending cycle. On one side, it has a substantial defence pipeline covering armoured recovery vehicles, protected vehicles and heavy mobility platforms. On the other, it is positioning itself to benefit from the expansion of India’s railway and metro networks, including the growing Vande Bharat ecosystem.

The potential Rs 21,000 crore suburban coach tender could therefore become an important growth opportunity, particularly if BEML succeeds in securing a meaningful share.

(This article discusses financial performance, order book estimates, and multi-year earnings projections for BEML based on a third-party report by Antique Stock Broking. While it highlights long-term growth opportunities across defence and railway mobility, these projections rely on future tender biddings and government procurement clearances that carry inherent execution risks. The financial metrics and growth forecasts presented are derived from brokerage estimates and should not be construed as direct stock recommendations or personal investment advice. Investors are advised to evaluate their personal risk appetite and consult a SEBI-registered financial advisor before making investment decisions.)