Bharat Electronics shares to be in focus on Thursday as company secures ₹730 crore order

Shares of Navratna defence PSU Bharat Electronics Ltd. (BEL) are likely to remain on investors' radar on Thursday, August 27, after the company announced a sizeable order win in post-market hours on Wednesday.

In a regulatory filing, the company said it had secured additional orders worth ₹730 crore. The fresh orders include communication equipment, radars, avionics, tank subsystems, electro-optics, cybersecurity, perimeter security, medical electronics, EVMs, jammers, batteries, spares and services, among others.

The latest order win adds to BEL's string of recent contracts. On August 10, the company secured orders worth ₹541 crore for communication equipment, electro-optics, ammunition fuzes, Chemical, Biological, Radiological and Nuclear (CBRN) systems, spares and services, among others.

The steady flow of order wins has revived investor sentiment towards the stock, which has recovered nearly 5% so far in August. The rebound follows three consecutive months of decline and has helped the stock recoup a portion of those losses.

Earlier, in late July, BEL secured additional orders worth ₹847 crore, comprising electro-optics, security operations centres, seekers, components, spares and services, among others. Before that, in June, the company bagged orders worth ₹1,081 crore, including communication equipment, radars, CBRN protection systems, seekers, avionics, upgrades, spares and services.

While the steady stream of orders has strengthened BEL's revenue outlook, the company reported a mixed set of numbers for the June quarter, which had earlier weighed on the stock.

BEL reported an 8.2% year-on-year (YoY) increase in net profit to ₹1,048 crore in Q1FY27, compared with ₹969 crore in the corresponding quarter last year.

On a sequential basis, however, net profit declined 52.4% from ₹2,203 crore reported in the March quarter (Q4 FY26). Revenue from operations rose 25.3% YoY to ₹5,533 crore from ₹4,417 crore in the year-ago quarter. Sequentially, revenue declined 45.6% from ₹10,177 crore in the March quarter.

Stock price trend

BEL's nearly 5% gain in August has helped the stock recover much of the 6% decline in July, while also turning its year-to-date returns positive by nearly 2%.

The stock turned volatile after hitting a fresh all-time high of ₹473 in March, closing four of the following five months in the red, including March.

Despite the recent volatility, BEL's long-term performance remains robust. The stock has surged 1,275% over the past seven years and has delivered positive annual returns in each of those years.

Among these, 2023 was the stock's strongest year, with a gain of 83%, followed by 2021, when it advanced 75%.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.