Bharat Electronics Limited revenue rises 26% in first half

Bharat Electronics Limited reported standalone revenue from operations of Rs 12,823.93 crore for the half year ended 30 September 2026, up 25.97% from Rs 10,180.48 crore a year earlier. Profit before tax rose 14.65% to Rs 3,466.87 crore and profit after tax rose 14.81% to Rs 2,589.06 crore, both below revenue growth.

How fast did BEL revenue grow in the first half?

BEL’s revenue from operations grew 25.97% to Rs 12,823.93 crore in the first half of FY 2026-27, from Rs 10,180.48 crore in the corresponding period of FY 2025-26. Other income rose to Rs 357.82 crore from Rs 322.72 crore, lifting total income to Rs 13,181.75 crore from Rs 10,503.20 crore. BEL’s 30 October 2026 release described the revenue increase as 26%.

The quarter ended 30 September 2026 contributed Rs 7,290.87 crore of first-half revenue, compared with Rs 5,533.06 crore in the quarter ended 30 June 2026 and Rs 5,763.65 crore in the quarter ended 30 September 2025. September-quarter revenue was Rs 1,527.22 crore higher year on year and Rs 1,757.81 crore higher than in the preceding quarter, showing that the half-year increase was weighted towards the second quarter.

The reported figures are standalone results, while BEL also published consolidated revenue from operations of Rs 12,874.70 crore for the half year ended 30 September 2026. Consolidated profit after tax was Rs 2,594.90 crore, compared with standalone profit after tax of Rs 2,589.06 crore. The consolidated statement includes BEL Optronic Devices Ltd., BEL-Thales Systems Ltd., GE BE Pvt. Ltd. and BEL IAI Aerosystems Pvt. Ltd.

Why did BEL profit grow more slowly than revenue?

BEL’s total expenses rose to Rs 9,714.88 crore in the half year ended 30 September 2026 from Rs 7,479.66 crore a year earlier. Cost of materials consumed increased by Rs 1,519.33 crore to Rs 6,461.31 crore, while consumption of stock-in-trade rose to Rs 566.52 crore from Rs 202.85 crore. Those increases occurred alongside the Rs 2,643.45 crore increase in revenue from operations.

Employee benefits expense increased to Rs 1,546.68 crore from Rs 1,451.35 crore, and depreciation and amortisation rose to Rs 315.88 crore from Rs 231.35 crore. Changes in inventories of finished goods moved from a Rs 251.80 crore reduction in the prior-year half to a Rs 58.72 crore reduction in the latest period. Other expenses declined to Rs 879.46 crore from Rs 900.84 crore.

BEL recorded no exceptional items in either half-year period. Consequently, profit before exceptional items and tax was the same as reported profit before tax, at Rs 3,466.87 crore in the half year ended 30 September 2026. Revenue growth exceeded profit before tax growth by 11.32 percentage points and profit after tax growth by 11.16 percentage points.

Tax provision increased to Rs 877.81 crore from Rs 768.28 crore in the respective half-year periods. Current tax rose to Rs 932.24 crore from Rs 771 crore, while deferred tax was a credit of Rs 54.43 crore, compared with a credit of Rs 2.72 crore a year earlier. These movements resulted in profit after tax of Rs 2,589.06 crore, up Rs 333.80 crore from Rs 2,255.26 crore.

What did BEL report for the September quarter?

BEL reported revenue from operations of Rs 7,290.87 crore in the quarter ended 30 September 2026, compared with Rs 5,763.65 crore in the year-earlier quarter. Profit before tax, or PBT, rose to Rs 2,064.04 crore from Rs 1,734.30 crore, while profit after tax, or PAT, increased to Rs 1,540.73 crore from Rs 1,286.13 crore.

Total income in the September 2026 quarter was Rs 7,481.30 crore, compared with Rs 5,922.75 crore in the September 2025 quarter. Materials consumed rose to Rs 3,425.43 crore from Rs 2,992.10 crore, while stock-in-trade consumption increased to Rs 286.71 crore from Rs 103.70 crore. Depreciation and amortisation increased to Rs 163.28 crore from Rs 118.47 crore.

The September quarter delivered higher absolute revenue and profit than the June 2026 quarter, when revenue from operations was Rs 5,533.06 crore, PBT was Rs 1,402.83 crore and PAT was Rs 1,048.33 crore. Earnings per share, not annualised, were Rs 2.11 for September 2026, compared with Rs 1.76 in September 2025 and Rs 1.43 in June 2026.

BEL’s September-quarter total expenses were Rs 5,417.26 crore, against Rs 4,188.45 crore a year earlier. Employee benefits expense was Rs 760.24 crore, slightly below Rs 761.16 crore in the prior-year quarter, while other expenses rose to Rs 537.80 crore from Rs 479.25 crore. The company’s quarterly PBT increase of Rs 329.74 crore was smaller than its revenue increase of Rs 1,527.22 crore.

What do BEL’s cash flow and order book show?

BEL generated standalone net cash from operating activities of Rs 1,469.06 crore in the half year ended 30 September 2026, compared with an outflow of Rs 881.14 crore in the corresponding 2025 period. Cash generated from operations was Rs 2,562.19 crore, compared with Rs 6.77 crore a year earlier, before net income-tax payments of Rs 1,093.13 crore.

The operating-cash movement included a Rs 828.35 crore reduction in trade receivables in the latest half year, compared with a Rs 1,460.01 crore increase in the prior-year period. Inventories increased by Rs 432.49 crore, below the Rs 1,075.45 crore increase reported a year earlier. Other liabilities reduced cash by Rs 1,135.50 crore, compared with an addition of Rs 373.77 crore in the earlier half.

Investing activities used Rs 2,051.86 crore, compared with a cash inflow of Rs 1,218.54 crore in the half year ended 30 September 2025. The latest investing outflow included Rs 1,724.49 crore for an increase in term deposits and other bank balances and Rs 535.27 crore for property, plant, equipment and intangible assets. Financing activities used Rs 398.94 crore, including Rs 402.04 crore of dividends paid.

Standalone cash and cash equivalents ended 30 September 2026 at Rs 845.19 crore, down from Rs 1,826.93 crore at 31 March 2026 but above Rs 725.25 crore at 30 September 2025. BEL said its order book stood at Rs 68,717 crore on 1 October 2026. The results do not disclose first-half order inflow, execution timing or segment results, as companies engaged in defence production are exempt from segment reporting requirements.

Conclusion

BEL increased first-half revenue by 25.97% to Rs 12,823.93 crore, while PBT increased 14.65% to Rs 3,466.87 crore and PAT rose 14.81% to Rs 2,589.06 crore. Higher material costs, stock-in-trade consumption, employee expenses and depreciation accompanied the revenue increase, although other expenses declined year on year.

The disclosed issue to watch is whether the Rs 68,717 crore order book reported on 1 October 2026 translates into future revenue and cash flow, as BEL did not provide an execution schedule. BEL also said it had reviewed contracts and agreements with Israel-based companies amid ongoing conflict in Israel and found no material financial impact as at the results date.