Q2 FY27 results analysis · October 30, 2026
Bharat Electronics Ltd (BEL) Q2 FY27 Results Analysis: Revenue Jumps 26.5%, Order Book Slips Again
+19.8%PAT year on year, Rs. 1,540.73 Cr
Source: Quarterly results filing (BSE)
Quick summary
Bharat Electronics Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 7,290.87 Cr (+26.50% YoY) and PAT growth of +19.80% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,290.87 Cr (+26.50% YoY) |
| PAT (Q2) | Rs. 1,540.73 Cr (+19.80% YoY) |
| EBITDA margin | 27.97% (-144 bps YoY) |
| EPS (Q2) | Rs. 2.11 (+19.89% YoY) |
Quarter Snapshot
Q2 revenue grew 26.50% YoY to Rs.7,290.87 Cr with PAT up 19.80%, tracking ahead of the >15% FY27 revenue guidance, while EBITDA margin improved 286 bps QoQ to 27.97% though it remains below the >28% FY guide. The key watch items are the fourth consecutive sequential order-book decline to Rs.68,717 Cr and the demanding 28.86% H2 margin needed to meet full-year margin guidance. H1 operating cash flow turned positive on receivables release, supporting earnings quality this half.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue in-line to ahead vs >15% guide | Execution carry from Rs.72,258 Cr book | Q2 +26.50% YoY; H1 +25.97% | Played out |
| Order inflow behind; QRSAM unsigned past September window | ~Rs.7,300 Cr YTD inflow, down ~44% YoY (per pre-call note, web-sourced) | Book declined to Rs.68,717 Cr at 1 Oct; filing is silent on QRSAM — direction | Played out |
| Margins flat to compressing; chip/FX cost risk (semiconductors 20–30% of BOM per recap) | Q1 margin 25.83%; watch chip pricing/USD-INR | Q2 margin 27.97%, −144 bps YoY but +286 bps QoQ; employee & other-expense lines show no input-cost breakout — YoY compression real, sequential improvement argues against acute input-cost pass-through | Partially |
| Other income supported by deposit base with repo held at 5.25% (per pre-call note) | Stable-to-up other income | Other income Rs.190.43 Cr, +19.69% YoY | Played out |
| Advance 4th-PRC provisioning could hit H1 margins | Watch item | Employee cost flat/down YoY and QoQ | Did not materialize |
| Working capital & cash conversion watch | Receivable days 140–150 band; OCF conversion weak historically | H1 CFO turned positive (Rs.1,49,013 L vs Rs.(89,780) L); receivables down vs Mar-26 — this half | Played out |
| QRSAM status, AMCA bid outcome, Shatrughat/Samaghat awards | Watch items for the call | Not addressed in the filing — remain open for the earnings call | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue growth >15% (15–20% per annual report) | FY27 guidance, Q1 FY27 earnings call (27 Jul 2026) & FY26 Integrated Annual Report | H1 +25.97%; Q2 +26.50% | On Track |
| EBITDA margin >28% (FY) | Reaffirmed on the Q1 FY27 earnings call; Q4 FY26 call | Q2 27.97%; H1 26.74% — H1 below guide; needs 28.86% on H2 | Stretch |
| Order inflow >Rs.55,000 Cr FY27 incl. QRSAM | Q4 FY26 & Q1 FY27 calls | Order book fell to Rs.68,717 Cr (1 Oct 2026) from Rs.72,258 Cr (1 Jul 2026) — see 8c/8e | Behind |
| R&D >Rs.2,200 Cr; capex >Rs.1,200 Cr; exports USD 300 Mn; employee cost ~12% of turnover | FY27 guidance, Q1 FY27 call / annual report | Not disclosed in this filing; Q2 employee cost 10.43% of revenue | Too early / partial |
| "We are confident we will achieve this guidance for this financial year" (CMD, Q1 FY27 closing) | Q1 FY27 earnings call | Revenue pacing well ahead; margin guide now arithmetically demanding (28.86% H2 needed) | Partially |
| Q1 margin decline "due to product mix variation, not due to input cost" (CFO, Q1 call) | Q1 FY27 earnings call | Q2 margin rebounded +286 bps QoQ; employee/other-expense lines show no input-cost breakout; the residual YoY gap is the inventory-signature swing — directionally | Confirmed |
| Q1 order inflow lean because "a significant portion of expected orders… being received in January–March" (management, Q1 call) | Q1 FY27 earnings call | Order book still fell during Q2 despite ~Rs.4,310 Cr of announced wins (31 Jul–21 Oct 2026, exchange filings) — deliveries outpaced inflow — back-ending remains untested | Too Early |
Key Investment Insights
Key Positives
- Q2 standalone revenue grew 26.50% YoY to Rs.7,290.87 Cr; H1 revenue up 25.97% to Rs.12,823.93 Cr, tracking above the >15% FY27 guidance
- Q2 PAT grew 19.80% YoY to Rs.1,540.73 Cr; H1 PAT up 14.80% to Rs.2,589.06 Cr
- EBITDA margin improved 286 bps QoQ from 25.11% to 27.97%
- H1 operating cash flow swung to Rs.1,49,013 L positive from Rs.(89,780) L negative a year ago, driven by Rs.83,937 L receivables release
- Trade receivables fell to Rs.12,03,639 L from Rs.12,87,576 L even as revenue grew; zero-debt balance sheet maintained
- Employee costs flat YoY (−0.12%) and down QoQ (−3.33%); other expenses H1 down 2.37% YoY
- Company states no material financial impact from Israel-exposed contracts as at the results date
Risk Factors
- Order book declined to Rs.68,717 Cr (1 Oct 2026) from Rs.72,258 Cr (1 Jul 2026) and Rs.73,882 Cr (1 Apr 2026), a steady sequential drawdown over four quarters
- H1 EBITDA margin of 26.74% is below the >28% FY guidance; a 28.86% H2 margin is required, above anything delivered in the last five quarters
- EBITDA margin compressed 144 bps YoY to 27.97%, with D&A up 37.82% YoY as a recurring margin layer
- 4th PRC wage revision (10–15% increases from 01/01/2027) not yet provisioned; management expects a Q4 FY27 provision
- FY27 order inflow guide of >Rs.55,000 Cr is at risk, dependent on a back-ended January–March order cluster including QRSAM
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