Bharat Electronics (BAJE.BO): Q1FY27 Results Review: Order inflow remains the key monitorable; Guidance across key parameters kept

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Bharat Electronics (BAJE.BO): Q1FY27 Results Review: Order inflow remains the key monitorable; Guidance across key parameters kept

Goldman Sachs Bharat Electronics (BAJE.BO)

than a demand concern. In Q1FY26, inflows had benefited from spillover from

Q4FY25, while in Q4FY26 some orders were advanced. Despite this base effect, BEL

remains confident of achieving FY27 order inflow guidance of more than INR 550bn.

n Large program pipeline is the key near-term catalyst: Orders such as Shatrughat

and Samaghat EW systems, Hammer, Shakti-IV, and potentially NGC or P-75I could

provide significant inflow visibility. The near-term pipeline is anchored by QRSAM,

where procedural delays remain but the order is expected by Q2FY27 subject to

Cabinet Committee on Security approval. Large platform-based orders such as

Shatrughat and Samaghat EW systems, together estimated at around INR 90bn, are

expected within the next three months. Additional opportunities include Hammer at

INR 25bn-plus and Shakti-IV EW at around INR 20bn, taking the potential inflow

from these programs to approximately INR 150bn.

n Order book and Execution: BEL’s order book stands at INR 722.5bn and is broadly

balanced across the Army, Navy, and Air Force. Management also expects future

order inflow to remain similarly distributed across the three services, reducing

concentration risk and supporting broad-based execution visibility. Of the

remaining INR 30bn LRSAM opportunity, around INR 21bn is expected to be

executed during the year. Akash Army may contribute around INR 20bn, while other

major orders are expected to contribute INR 5-10bn each.

n Margins are expected to remain resilient: Management retained its EBITDA margin

expectation of around 28%, while acknowledging quarterly variability in the 25-31%

range.