BEML To Roll Out 20 Train Sets For Bengaluru Metro In FY26, Says CMD Shantanu Roy
BEML is targeting order inflows of at least 50% to 60% of the current order book in FY26.
State-run engineering and manufacturing company BEML (formerly Bharat Earth Movers Ltd.) will roll out 20 train sets for the Bengaluru Metro in FY26, according to its Chairman and Managing Director (CMD), Shantanu Roy.
“In September, we are planning to roll out the first train, which is very much as per plan. And this year, we are supposed to roll out 20 train sets. We are on track as far as the Bengaluru Metro is concerned,” he said during a conversation with NDTV Profit on Tuesday.
The company is targeting order inflows of around 50-60% of the current orderbook in FY26. “This year order inflow has been pretty good, around Rs 3,000 crore,” Roy said.
“In the current financial year, we are looking at an order inflow which will be at least 50% to 60% of the current order book, out of which 50% should come from rail metro, 25% each from defence and mining and construction. The coming two quarters, we expect some more good orders from defence, rail and metro,” the top executive noted.
He emphasised that BEML’s order book stands at an all-time high of over Rs 16,700 crore, with 65% from rail and metro, 26% from defence and 9% from mining and construction.
The company is targeting a top-line growth of at least 20% and a 150-basis-point growth in its Ebitda margin.
“We have targeted 150 basis points. It is based on two factors. The first factor is the growth in the top line. And the second factor is a focus on the working capital. So that we reduce our overall working capital by way of focusing on reducing the inventory. And reducing the debtors. As well as rationalising the design of various products,” the CMD said.
Roy said that the target is to achieve an order book of Rs 22,000 crore by the end of FY26.
“We have to reach a total order book of around 28,000 crores, out of which if we execute some Rs 5,000-6,000 crore this year, we'll end up the year at Rs 22,000 crore,” he said.
BEML aims to reduce its material cost by 2% in FY26. “A 1% saving in material cost leads to a huge positive impact on the profitability. Our target this year is to reduce the material cost by at least 2%,” the CMD said.
Shares of BEML were trading 3.3% higher at Rs 4,022 apiece on the NSE at 12:34 p.m., while the benchmark Nifty50 stood at 24,750.05, up 0.51%.
