Bharat Electronics: 4QFY26: In-line earnings; positives priced in

研报英文原文证据摘录

Bharat Electronics: 4QFY26: In-line earnings; positives priced in

Accessible version

Bharat Electronics

4QFY26: In-line earnings; positives priced

in

Reiterate Rating: UNDERPERFORM | PO: 346.00 INR | Price: 413.30 INR

4QFY26: In-line earnings 20 May 2026

BHE recurring earnings were up 5% YoY, in-line with estimates. Revenue grew by 12% Equity

YoY, while EBITDA margins contracted -147bps YoY to 29.1% for the quarter. However,

on an annual basis, FY26 margins at 29.2% beat company margin guidance of 27%.

Key Changes

Strong guidance for FY27, QRSAM expected in Q1 (Rs) Previous Current

Management shared its guidance for FY27: a) >15% topline growth, b) 28% EBITDA Price Obj. 300.00 346.00

margin, c) Rs250bn order inflow (ex-QRSAM), and d) R&D expenditure of Rs22bn and 2026E EPS 8.44 8.29

capex of Rs12bn. Largely in line with the street estimates. Further, the company is 2027E EPS 10.08 9.99

expected to receive QRSAM order (Rs300bn) in Q1FY27 (vs Q4FY26 earlier). The 2028E EPS 11.43 11.37

orderbook remains healthy at Rs739bn.

Amish Shah, CFA >>

Research AnalystRobust ordering, but margins remain a key monitorable

BofAS India

BHE’s order visibility remains strong beyond FY26, with large programs such as NGC in +91 22 6632 8656

FY27 (Rs160bn) and Project Kusha in FY28/29 (Rs300bn) sustaining the pipeline. As shah.amish@bofa.com

BHE’s participation in these platforms increasingly shifts toward a system‑integrator Udit Dhekale >> Research Analyst

role, its value‑addition share is likely to decline, posing a potential margin headwind. BofAS India

While we/Street currently bake in stable margins of 28-29% for FY27/28, we continue to udit.dhekale@bofa.com

monitor the impact of lower value addition on margins as a key risk. Management Manya Kakkar >> Research Analyst