BEML's Order Book Is Expected To Double By FY26, Says Chairman Shantanu Roy

BEML Ltd.'s order book is expected to double by the end of financial year 2026, according to Chairman and Managing Director Shantanu Roy. Its exciting times for railway, metro and defence and aerospace sectors, he added.

The company expects to add over Rs 14,000-crore orders in FY26. Of this, 20% should come from defence, according to him. "We ended the year at Rs 14,610 crore, and I am looking at the same number as a further order inflow," he told NDTV Profit.

The company took a lot of initiatives to transform. "Starting strategic business unit was one of the major structural changes. We started with 12 strategic business units and now we are on the verge of creating two more strategic business units," he said. "Creating a leadership pipeline and improving efficiency and faster decision making, were the other major changes."

"These new changes are stabalising now and FY25-26 should see a mark change in the numbers as well. We have been able to give decent numbers as far as Ebitda is concerned. Slowly, we are going up from 5-5.5% to 13.2%. We expect significant shift in numbers in FY26," he said.

BEML has transitioned from being merely a platform supplier to a system integrator for high mobility vehicles, he noted. In FY25, railway and metro could not fire, but mining and defence did phenomenally well. The contribution of defence segment rose to a historic 27% of the topline.

In FY26, the company is expected to report 14.5-14.7% margin for the 150 bps jump in FY26. "We further expect 20% margin in next 4-5 years, mainly driven by railway and metro, defence and aerospace," Roy said.

Financially, every strategic business unit has to contribute at least a specific number, and the micro strategic business unit is supposed to contribute half of that number.

"We would see a further enhancement in the numbers on the revenue front in FY25-26, driven by the defence and aerospace and railway and metro segments," he said.

The BEML Chairman highlighted that the execution time for the metros start from this year. "We would be delivering 20 metros to Bengaluru Metro in the current financial year. Meanwhile, we are also ready to roll out the prototype Vande Bharat Sleeper trains work and will be completing all the balance order this year," he said.

BEML is expected to see a substantial growth in topline from rail and metro segment through these two projects. "In defence segment, we have enough orders with us. If we can execute the existing orders itself, there would be huge growth," he added.