Several brokerage firms have recently adjusted their target prices for state-run defence electronics major Bharat Electronics Ltd (BEL), with some trimming projections by up to 10 percent. This comes despite BEL delivering a strong operational performance in its latest financial results, leading to a nuanced outlook from market analysts.
BEL Reports Strong Q4 Performance
Bharat Electronics announced a 4.7 percent year-on-year (YoY) increase in net profit, reaching Rs 2,203.16 crore. The company's revenue also saw a significant jump of 11.6 percent YoY, totaling Rs 10,177.17 crore. As of April 1, 2026, BEL's order book stood robust at Rs 73,882 crore. The company also declared a final dividend of Rs 0.55 per share.
However, despite these positive figures, the stock has experienced some short-term volatility, tumbling nearly 10 percent from its 52-week high of Rs 473.25 hit in March 2026.
Brokerages Remain Positive Despite Adjustments
While some target prices have been reduced, the overall sentiment among brokerage firms remains largely positive, with many maintaining 'Buy' or 'Add' ratings. The primary reason for the target price adjustments appears to be anticipated delays in key project awards, particularly the Quick Reaction Surface to Air Missile (QRSAM) order, which some analysts now expect by June-July 2026 instead of an earlier timeline.
- Motilal Oswal Financial Services trimmed its target to Rs 510 but maintained a 'buy' rating. The firm highlighted BEL's strong execution and better-than-expected margins, expecting the company to sustain revenue growth of 15 percent over the coming years due to a robust defence order pipeline and increasing indigenisation.
- Nirmal Bang Institutional Equities reiterated a 'buy' rating with a target price of Rs 497. They emphasized BEL's pivotal role in India’s defence electronics ecosystem and its strong participation in strategic defence platforms, projecting revenue growth of 19 percent for FY27E and 21 percent for FY28E.
- Choice Institutional Equities also held a 'buy' rating, trimming its target to Rs 500. They pointed to strong long-term growth visibility, underpinned by a robust order book and a healthy pipeline of future opportunities.
- ICICI Securities maintained an 'add' rating with a trimmed target of Rs 470. The firm noted BEL's strong order book of Rs 73,900 crore and management's guidance for 15 percent revenue growth and 28 percent margins, positioning BEL as a key beneficiary of defence spending.
- Elara Capital reiterated an 'accumulate' rating but cut its target price to Rs 465 from Rs 485, specifically citing the delay in the QRSAM order.
- Conversely, PL Capital upgraded its rating to 'accumulate' from 'reduce', increasing its target price to Rs 453 from Rs 411. This upgrade was driven by rising indigenisation (80–85 percent), growing export opportunities, and increasing non-defence contributions.
Analysts generally remain optimistic about BEL's medium-term growth prospects, supported by a strong defence order pipeline, increasing indigenisation efforts, and expanding export opportunities, which are expected to contribute to margin sustainability.