Bharat Electronics Q2 FY27 Profit Rises 20% on Revenue Growth

Bharat Electronics Limited reported Q2 FY27 net profit of ₹1,540 crore, up about 20% year on year, supported by a 26% increase in revenue to about ₹7,300 crore. The defence public sector undertaking’s sales growth exceeded profit growth as gross and operating margins declined from a year earlier.

How did BEL perform in Q2 FY27?

BEL reported consolidated revenue from operations of ₹7,327.7 crore for the quarter ended September 30, 2026, compared with ₹5,792.1 crore in Q2 FY26. This represented year-on-year growth of 26.5%. Revenue also increased 32.1% sequentially from ₹5,547 crore in Q1 FY27, showing a stronger second-quarter sales run rate.

Net profit rose 19.7% year on year to ₹1,540.4 crore from ₹1,287 crore. Profit after tax was also 46.1% higher than the ₹1,055 crore reported in the preceding quarter. The available results summary said BEL’s quarterly performance beat revenue, EBITDA and profit estimates, although the company’s profit growth was lower than its revenue growth.

What happened to BEL’s quarterly margins?

BEL’s margin indicators weakened year on year despite the increase in absolute operating profit. Gross margin was reported at 45.8% in Q2 FY27, down from 51% in Q2 FY26. The decline indicates that the growth in sales did not translate proportionately into gross profitability.

EBITDA was reported at about ₹2,040 crore, an increase of roughly 20% from the previous year. EBITDA margin contracted by 140 basis points to 28%. The quarterly operating margin was higher than the 25% reported for Q1 FY27, but below the roughly 29% level in Q2 FY26. This explains why quarterly profit growth remained behind the pace of revenue growth.

What were BEL’s first-half FY27 financial results?

BEL recorded first-half revenue from operations of ₹12,824 crore, up 25.97% from ₹10,180 crore in the corresponding period of the previous year. Chairman and Managing Director Manoj Jain said profit before tax increased 14.66% to ₹3,467 crore, while profit after tax rose 14.80% to ₹2,589 crore.

First-half earnings per share increased to ₹3.54 from ₹3.09 a year earlier. BEL reported EBITDA margin of 27.43% for the first half. The first-half trend was similar to the September-quarter pattern: revenue expanded faster than profit, reflecting the lower margin profile compared with the prior-year period.

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

BEL’s order book stood at ₹68,717 crore as of October 1, 2026, according to the results information. The order book is relevant because it provides visibility over future execution for a defence electronics manufacturer whose sales depend materially on project deliveries and government procurement schedules.

The company also reported an improvement in operating cash flow during the first half. Operating cash flow turned positive at ₹1,490.1 crore, compared with an outflow of ₹897.8 crore in H1 FY26. Trade receivables declined to ₹12,036.4 crore from ₹12,875.8 crore at the end of March 2026, while inventory stood at ₹10,592.3 crore.

What did management say about FY27 targets?

BEL said it remained confident of meeting guidance issued at the beginning of the financial year. Jain said the company was working toward revenue growth of more than 15% for FY27 and EBITDA margin of around 28%. He added that there could be positive surprises, but did not change the stated guidance during the call.

For investors, the guidance places the quarterly performance in context. The company has already reported first-half revenue growth of nearly 26%, above its full-year growth target, while its first-half EBITDA margin of 27.43% is close to the around-28% objective. The reported assessment of existing Israel-related contracts and agreements found no material financial impact as of the results date.

Conclusion

BEL’s Q2 FY27 result showed strong revenue growth, improved sequential profitability and a large order book. Revenue grew 26.5% year on year to ₹7,327.7 crore and net profit rose 19.7% to ₹1,540.4 crore, while the decline in gross and operating margins kept profit growth below sales growth.

The next key reference point is BEL’s delivery against its FY27 guidance of revenue growth above 15% and EBITDA margin of around 28%. Investors will also watch order execution, receivable collection, operating cash flow and whether margins stabilise through the remaining quarters of the financial year.