Analysts will keep a careful eye on milestone-based deliveries and execution momentum, as well as management comments on growth visibility and updates on the conversion of significant approvals into firm orders, especially QRSAM.
Antique is the most gloomy of the brokerages, projecting the lowest net profit of Rs 4,518, while JM Financial is the most enthusiastic with the highest projection of Rs 5,147.
In Q3FY26, Bharat Electronics Ltd. (BEL) is anticipated to achieve consistent year-over-year revenue increase, bolstered by execution from its robust order book. On January 28, the defense giant is scheduled to release its Q3 earnings.
A Moneycontrol estimate from six brokerages indicates that revenue would rise by 16.2% to 6,703.6 in Q3FY26E, indicating robust top-line growth. In the same time frame, net profit is expected to rise by 12.3% to 1,472.3.
Despite strong revenue and earnings growth, margins are predicted to fall somewhat from 28.9% to 28.2%, a drop of about 70 basis points, indicating mild pressure on profitability.
Antique is the most gloomy of the brokerages, projecting the lowest net profit of Rs 4,518, while JM Financial is the most enthusiastic with the highest projection of Rs 5,147.
Here are the key drivers for earnings:
Strength of the order book guarantees visibility
With DPSUs running at a book-to-bill ratio of about 4x, brokerages are nonetheless optimistic about BEL’s order visibility. According to Motilal Oswal, BEL’s robust backlog and backend-loaded deliveries offer reassurance regarding medium-term revenue visibility, with execution—rather than order inflows—remaining the primary driver in the short run.
Execution is still crucial.
Nomura claims that government-led procurement and milestone-based deliveries are helping defense electronics firms like BEL see consistent execution momentum. The firm points out that while delays continue to be the biggest risk to quarterly performance, any acceleration in execution might boost profit upside.
Despite the mix, margins will be steady.
Brokerages predict that margins will be largely steady in Q3FY26. Even though the product mix continues to fluctuate on a quarterly basis, Elara Securities thinks that operating leverage from increased execution levels and cost management could support margins.
Medium-term growth is supported by procurement approvals
According to Nirmal Bang, FY26 has already seen almost Rs 3.1 trillion worth of AoNs (Acceptances of Necessity), with defense players receiving approval for Rs 1.6 trillion (Rs 1.6 lakh crore) in Q3FY26 alone. With order placement anticipated in Q4FY26, BEL is anticipated to be a major beneficiary of major programs, such as QRSAM.
Indigenization and policy assistance continue to be structural advantages.
Kotak Institutional Equities and Choice Equities are nevertheless optimistic about BEL’s prospects, pointing to the government’s ongoing emphasis on defense indigenization, growing capital expenditures, and BEL’s role as a major defense electronics integrator as factors that support medium-term growth visibility.
What analysts will keep an eye out for
Analysts will keep a careful eye on milestone-based deliveries and execution momentum, as well as management comments on growth visibility and updates on the conversion of significant approvals into firm orders, especially QRSAM. Along with any advice on order inflows and execution schedules, margin commentary—particularly about product mix and operating leverage—will also be important monitorables.
