ABOUT THE COMPANY
BHARAT ELECTRONICS LIMITED is a Navaratna Public Sector Undertaking of the Ministry of Defence, Government of India. The company is a key supplier to the Indian Armed Forces and the export customers of the radars, communication & electronic warfare systems, weapon-locating equipment and other defence electronics. The order book of the company has been reported at ₹71,650 crore with majority of its are from the Indian Armed Forces. The BEL’s stock has shown 13.61x returns in the past 3 years. The company has 9 manufacturing units across the country and 2 research development facilities. The company has been maintaining a good dividend payout of 39.1%.
Quick peer context: Hindustan Aeronautics Ltd (HAL) had a comparable order book of ₹80,000 crore, with strong growth visibility while order defense sector stocks like Bharat Dynamics Limited (BDL) and Garden Reach Shipbuilders & Engineers (GRSE) have smaller but fast-growing order books.
Analysis of the Financial Statements
Revenue Growth Trend
The company has shown steady growth over the past 5 years compounding at about 12.88%, from being Rs 12,968 crores in March 2020 to Rs 23,769 crores in March 2025. The revenue split for FY25 shows that 90% comes from defence sector, 6% non-defence and 4% exports. Rs 18,715 crores are won in FY25 indicating near term sales growth.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 12,968 CRORES | 14,109 CRORES | 15,368 CRORES | 17,734 CRORES | 20,268 CRORES | 23,769 CRORES |
Profitability & Margin Analysis
Operating Profit Margin of the company has shown a steady increase from 21% to 29% in the past 5 years which shows that the company management has taken steps to reduce the costs and improve the net profit percentage. HAL’S operating profit margin stands at 20% and BDL/GRSE are typically lower at around 16-18%.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 21% | 23% | 22% | 23% | 25% | 29% |
Balance Sheet Strength
Total Assets of the company have shown an increase from Rs 24,351 crores to Rs 40,824 crores. Company had been exploring opportunities in allied defence system for which company has been taking steps in modernization of plant & machinery, test instruments, etc. by spending Rs 650 crores and Rs 800 crores in FY25 on new factories in Palasamudram, Nimmakuru, Hyderabad, and Ibrahimpatnam.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 24,351 CRORES | 29,492 CRORES | 33,912 CRORES | 35,490 CRORES | 39,524 CRORES | 40,824 CRORES |
Debt Profile
Company is almost debt free with about Rs 61 crores in debt while the reserves of the company stand at Rs 19,243 crores indicating that the company can finance its growth through its retained earnings.
Reserves and Surplus:
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 9,828 CRORES | 10,816 CRORES | 12,042 CRORES | 13,131 CRORES | 15,595 CRORES | 19,243 CRORES |
Cash Flow Health
The Cash from Operating Activity has remained positive throughout the years and been growing at a steady phase, a very constructive sign for a company in investment phase. The cash conversion cycle of the company is 313 days, which can be accepted for such industry. The cash generated and the cash conversion cycle is a critical indicator of a healthy business model that generates real cash from its core activities.
Comparative Data with Key Competitors (Larsen & Toubro, Honeywell Automation India)
| Parameter | Bharat Electronics (BEL) | Larsen & Toubro (L&T) | Honeywell Automation India (HAIL) |
| Sales Growth (5-Yr CAGR) | 10-12% | 8-10% | 12-15% |
| Operating Profit Margin | 21-24% | 10-12% | 14-16% |
| Debt-to-Equity | 0.1 (Virtually Debt-Free) | 1.2-1.5 (Moderate) | Negative (Net Cash) |
| Reserves Growth | Consistently Strong | Strong | Strong |
| Cash Flow | Consistently Positive CFO | Positive, but can be volatile | Consistently Positive |
Disclaimer: The article is for informational purposes only and not investment advice.