Bharat Electronics Ltd Overweight: Growth momentum remains intact, preferred defense play in India

Research evidence excerpt

Bharat Electronics Ltd Overweight: Growth momentum remains intact, preferred defense play in India

J P M O R G A N Asia Pacific Equity Research

20 May 2026

Bharat Electronics Ltd Overweight

BAJE.NS, BHE IN

Overweight: Growth momentum remains intact, Price (20 May 26):Rs413.30

preferred defense play in India ▼Price Target (Mar-28):Rs525.00 Prior (Mar-27):Rs556.00

BEL reported in-line 4QFY26 results and gave healthy growth guidance for FY27

with revenue growth of >15%, order inflow of > Rs550bn and EBITDA margin of India Industrials, Electric Utilities,

and Infrastructure Sectors>28%. The guidance should allay doubts on revenue growth in FY27. Equally

importantly, BEL management expressed confidence in maintaining a similar Atul Tiwari AC

growth trajectory over the next 4-5 years given the structural growth in defense (91-22) 6157-3582

atul.tiwari@jpmorgan.com

manufacturing in India and BEL’s pole position. The QR-SAM order, which could

not be finalized in 4QFY26, is now expected by June end (90% probability) or Rishabh Gupta

(91-22) 6157-3429

latest by July. Most of the contracting formalities are complete and only final rishabh.x.gupta@jpmorgan.com

approval is needed. A steady stream of orders, including some large ones, elevated

Muskan Agarwal

geopolitical risks both in India and globally and strong medium-term growth (91-22) 6157-3226

prospects (15%+ revenue CAGR) with a healthy RoE (25%+) should continue to muskan.x3.agarwal@jpmchase.com

drive outperformance for BEL stock, in our view. BEL remains our top pick in J.P. Morgan India Private Limited, J.P. Morgan

India’s defense sector. Reiterate Overweight with a Mar-28 PT of Rs525. Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI