Bharat Electronics Q1 Review — Motilal Oswal Maintains 'Buy' On Strong Margin Performance

Bharat Electronics has a robust pipeline of upcoming orders across multiple high-value programs, providing strong revenue visibility beyond FY26. The company continues to strengthen its leadership in the sonar domain, positioning itself as the primary production partner for NPOL, DRDO's designated sonar development lab.

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Motilal Oswal Report

Bharat Electronics Ltd.'s Q1 FY26 PAT exceeded our estimate, driven by better-than-expected margins. Revenue growth was aided by a strong order book, though it was affected to some extent by geopolitical issues.

The order book was strong at Rs 749 billion and order inflows stood at Rs 76 billion. The company has maintained its guidance on revenue and order inflows and expects margins to remain strong at 27%. We expect the company to benefit from emergency procurement and the finalization of larger platform orders from the Army, Navy and Air Force.

We also expect Bharat Electronics to benefit from incremental opportunities in exports as defense spending increases globally. We marginally tweak our estimates and maintain Buy with a target price of Rs 490 based on 45x Sep'27E EPS.

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