Bharat Electronics shares have plunged 3.5% to a low of Rs 393.20 on the NSE after the Q1FY27 performance failed to cheer up investors and the order book appeared slightly lower than estimates. However, key brokerages remain positive on the stock and are betting on the management’s 15% revenue guidance.
They expect BEL to benefit from various large platform orders, which will be finalised over the next few years from the Army, Navy, and Air Force.
Nomura on BEL
Nomura maintained its Buy rating and target price of Rs 454 on BEL, implying an upside of 11.5% as higher sales were offset by margin drag.
The brokerage highlighted that the gross margin contracted 775 basis points year-over-year to 45.5% (-550 bp against its estimates) primarily due to product mix, with negligible impact of input costs.
However, lower other expenses (-337 bps YoY as % of sales due to the absence of liquidated damage provisions of Q1 FY26) partly offset the impact, resulting in an EBITDA margin of 25%, which was 297 bps lower YoY.
Also, the company’s management is confident of achieving order inflow of Rs 55,000 crore in FY27, of which Rs 30,000 crore/Rs 15,000 crore will be from QRSAM (Quick Reaction Surface to Air Missile)/platform orders.
According to management, QRSAM is awaiting only CCS approval and is expected to be approved at the next CCS meeting.
Nuvama on BEL
Nuvama Institutional Equities also retained its ‘Buy’ rating and price target at Rs 485, implying an upside of 19% from the current market price.
The brokerage said that the execution ramp-up of air-defence programmes (LRSAM, Akash, LCA radars and QRSAM/Kusha) with growing repairs, upgrades, exports should underpin healthy growth in the long term for Bharat Electronics.
Motilal Oswal on BEL
Motilal Oswal Financial Services also maintained its ‘Buy’ rating on the stock and retained the price target at Rs 530, an upside of over 30%.
BEL reiterated its FY27 guidance, expecting revenue growth of 15%, an EBITDA margin of 28%, and order inflows of over Rs 55,000 crore, including the QRSAM program. The company also plans to invest over Rs 2,200 crore in R&D and Rs 1,200 crore in capex during the year, while maintaining a business mix of 90% defence and 10% non-defence.
“The long-term margin profile will be supported by accelerated indigenisation, with BEL targeting to eliminate imports of all electronic modules (ex-semiconductor components) over the next five years,” said Motilal Oswal.
BEL Q1FY27
The Navratna defence PSU company posted an 8% year-over-year jump in Q1 net profit at Rs 1,048 crore for the first quarter of FY27, compared with Rs 969 crore in the same period a year ago.
The company’s revenue from operations surged 25% YoY to Rs 5,533 crore in Q1FY27 as against Rs 4,417 crore in Q1FY26.
Its order book position stood at Rs 72,258 crore as of July 1, 2026, it said in a stock exchange filing.
On the operating front, the company reported strong growth. EBITDA surged 25.5% to Rs 1,556 crore compared to Rs 1,239.9 crore in the year-ago period. The EBITDA margin remained at 28.1%, flat compared to the previous year and marginally below the street’s expectation of 28.4%.
BEL share price performance
The share price of Bharat Electronics has fallen 0.5% in the last five trading sessions. The stock has dropped 1.2% in the last one month and 10.2% in the past six months. However, BEL’s share price has increased 4.5% over the past one year.