Bharat Electronics Q2 Results: Profit Up Nearly 26%; Beats Estimates
Post the surprised beat, Morgan Stanley maintained a bullish stance on Bharat Electronics Ltd.
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Bharat Electronics Ltd. reported a nearly 26% advance in net profit to Rs 1,287.77 crore in the July-September quarter, compared to Rs 1,092.45 crore in the corresponding period last year, according to the financial results released on Monday.
The bottom line was the Bloomberg analysts' consensus estimate of Rs 1,085 crore.
Post the surprised beat, Morgan Stanley maintained a bullish stance on Bharat Electronics Ltd. Robust order book and strategic pivot towards high-margin, next-generation defence products, forecasting continued earnings growh despite elevated valuations, the brokerage said in a note.
Bharat Electronics' secured revenue base from the order book, higher margin from new products, and better execution is expected to help in sustaining the earning momentum. Hence, Morgan Stanley expects the positive outlook will continue.
BEL Q2FY26 Highlights (Consolidated, YoY)
Revenue up 25.78% at Rs 5,792.09 crore versus Rs 4,604.9 crore crore (Estimate: Rs 5,439 crore).
Ebitda up 21.58% to Rs 1,702.17 crore versus Rs 1,399.95 crore (Estimate: Rs 1,425 crore).
Margin at 29.38% versus 30.4% (Estimate: 26.2%).
Net profit up 17.87% to Rs 1,287.77 crore versus Rs 1,092.45 crore (Estimate: Rs 1,085 crore).
The order book position of the company as on Oct. 1 stood at Rs 74,453 crore.
Shares of Bharat Electronics Ltd. rose 4.10% to Rs 426.7 apiece on the National Stock Exchange after the announcement. It was trading 4.06% higher at Rs 426.5 apiece as of 2:44 p.m.
