Bharat Electronics Signals Q4 Defence Order Push Led By Missile Shield Deal

Bharat Electronics Ltd said it expects a strong pickup in defence orders in the January–March quarter, led by a near-term decision on a major missile air defence programme and several electronic warfare and aircraft-related contracts, according to its top management.

The state-run defence electronics company said it is “more than 90% confident” of securing the Quick Reaction Surface-to-Air Missile, or QRSAM, order before the end of the financial year, with only a small possibility of the decision slipping into the next quarter.

“QRSAM itself we are hopeful that we may get by this year itself, means by Q4 itself,” Chairman and Managing Director Manoj Jain said on the earnings call on Wednesday after the results announcement earler in the day, adding that there was “some few percent chance only to spill over to Q1 of next year”. 

Beyond QRSAM, the company said several other defence programmes are at advanced stages of closure and could be awarded within weeks, allowing Bharat Electronics to exceed its full-year order inflow target even if the missile defence deal is delayed.

“We are confident we will cross Rs 27,000 crore without QRSAM definitely,” Jain said, referring to the company's FY26 order inflow guidance.

Missile Shield At Centre

QRSAM remains the central near-term catalyst for Bharat Electronics, given the size of the programme and the multi-year execution it would trigger. Jain said the order, once placed, would be executed over several years and involve multiple domestic partners.

He said the missile portion of the contract, accounting for roughly 30% of the total value, would be supplied by Bharat Dynamics, while Bharat Electronics would execute the rest as system integrator. “Remaining orders will be executed by BEL,” Jain said, adding that the margin profile would be similar to other large air defence systems delivered by the company.

Electronic Warfare And Aircraft Orders

In electronic warfare, Jain said one of two major programmes, including the Shatrughat system, could be awarded within the current quarter after completion of trials and cost audits. “We are expecting one of the programme, Shatrughat, we may get order by Q4 of this year itself,” he said.

The second electronic warfare programme, he said, is expected to follow in the first half of the next financial year. “Otherwise, definitely they are in H1 of the next year, both the programmes,” Jain said.

The company also expects an order for line-replaceable units for the Light Combat Aircraft from Hindustan Aeronautics to be placed shortly, after price negotiations were concluded. “LCA order from HAL we are expecting very soon, anytime,” Jain said, indicating the deal would be valued at about Rs 2,400 crore.

For the Navy, Bharat Electronics said part of the Next Generation Corvettes package could be awarded before March, with the balance flowing into the first two quarters of the next financial year. Jain said about “20% to 25% of the orders we may get before March” and the rest in Q1 and Q2 of FY27.

Visibility Extends Into FY27

Taken together, the expected Q4 awards and smaller recurring defence contracts should allow Bharat Electronics to exceed its annual order inflow guidance, management said, with further large programmes already lined up for FY27.

Jain said the company has visibility to sustain growth for several years based on projects already in the pipeline. “Once we have committed to you that we are going to have a growth of more than 15% year-on-year, so that we have taken care of for next three to four years at least,” he said.

Among the upcoming programmes is Akash Next Generation, where Bharat Electronics is positioned as the lead integrator for the Air Force variant. Jain said the order is more likely in the following financial year after approvals are completed.

He also said the company expects a request for proposals for the Advanced Medium Combat Aircraft programme by mid-February, after submitting an expression of interest in partnership with Larsen & Toubro. “Hopefully, my estimate is around mid of February we may get the RFP,” Jain said.

For now, management said the focus remains on converting the Q4 defence pipeline into firm orders, noting that trials, audits and negotiations for the largest programmes have largely been completed.

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