BEL share price: Defence stock edges lower after Q1 results 2025. Opportunity to buy?
BEL shares opened at ₹ 389.95 on Tuesday, as compared to previous close of ₹ 389.25. At 9:20 am, the PSU stock touched an intraday low to ₹ 380.30 per share on July 29.
The PSU stock has declined over 9 per cent in a month, however, has gained nearly 42 per cent in six months. The defence stock has also given multibagger returns to its long-term investors by soaring over 1,092.64 per cent in five years.
Navratna defence PSU company reported a net profit of ₹ 970 crore for the first quarter (April–June) of FY26, reflecting a 22.6 per cent year-on-year increase from ₹ 791 crore in the same period last year.
However, on a sequential basis, net profit dropped sharply by over 54 per cent from ₹ 2,127 crore reported in the preceding quarter (January–March).
BEL's revenue from operations grew 5 per cent year-on-year to ₹ 4,439.74 crore in Q1 FY26, up from ₹ 4,243.57 crore in Q1 FY25. Sequentially, revenue fell more than 51 per cent from ₹ 9,149.59 crore in Q4 FY25 and came in below the market consensus estimate of ₹ 4,708 crore.
As of July 1, 2025, the company's order book stood at ₹ 74,859 crore. Earnings per share (EPS) rose year-on-year to ₹ 1.33 in Q1 FY26 but declined from ₹ 2.91 recorded in the previous quarter.
The EBITDA margin rose by almost 6 percentage points, reaching 28.1 per cent compared to 22.3 per cent in the previous year. This also exceeded the anticipated margin of 24.5 per cent.
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, BEL has delivered a solid performance in Q1 FY26, reinforcing its credentials as a leading defence electronics company in India. Despite a modest 5.2 per cent revenue growth, BEL's operating profit margin surged by 560 bps to 27.9 per cent, reflecting better cost management and favourable execution mix.
Srivasatava further explained that the healthy 24.3% rise in PBT and robust PAT growth indicate consistent profitability and strategic discipline. However, a key monitorable is the slight dip in the order book to ₹ 74,859 crore, down 2.4% YoY. While this is not alarming, future order inflows from defence modernization, Make in India initiatives, and export opportunities will be crucial to sustain long-term growth momentum.
'BEL's debt-free status, strong cash flows, leadership in radar, missile systems, and EW segments, and growing focus on non-defence verticals like smart cities and cybersecurity further bolster its investment case. With strong government support for indigenisation in defence and BEL's proven execution capability, the long-term outlook remains positive. Investors with a 3–5 year horizon can consider BEL as a core portfolio holding for stable compounding and sectoral tailwinds,' she said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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