₹25,000 Cr To ₹20,000 Cr: Defence stock in focus after it reduces its order book guidance for FY26

Synopsis:- A defence-focused equipment maker cut its FY26 order book guidance to  Rs 20,000 crore from  Rs 23,000–25,000 crore, yet targets its highest-ever level. Despite Q2 revenue dipping to  Rs 839 crore, it expects 20% growth, margin improvement of 150 bps, and strong execution across defence, rail, and mining segments.

India’s construction vehicles sector is booming amid massive infrastructure push. In FY25, domestic sales hit 126,961 units, up 2.7% from prior year, with exports surging 10% to 13,230 units. The market, valued at USD 7.38 billion in FY24, eyes 11.91% CAGR through FY2032, fueled by urban projects and govt spending.

With a market capitalisation of Rs 14,675.52 crore, the shares of BEML Ltd were trading at Rs 1,762.00 per share, increasing around 4.35 percent as compared to the previous closing price of Rs 1,688.55 apiece.

Guidance

The company expects strong order inflows over the next 2–3 quarters and aims to close FY26 with an order book of around  Rs 20,000 crore. This marks a guidance cut from the earlier expectation of  Rs 23,000– Rs 25,000 crore, reflecting a more conservative outlook despite steady deal momentum.

Additionally, operationally, nearly 90% of the defence supply chain has stabilised, with full stabilisation targeted in the next 2–3 months. Management is guiding for 20% revenue growth this year, along with a 150 bps margin improvement, and plans to execute about 30% of the order book annually.

Financial & Operational Highlights

The company reported a modest slowdown in Q2FY26, with revenue declining 2.5% to  Rs 839 crore, reflecting softer demand or execution challenges. Profitability also weakened, as net profit fell 6% to  Rs 48 crore, indicating pressure on margins and higher costs during the quarter.

BEML’s business portfolio shows strong diversification across key sectors. Mining & Construction leads with 54% of total sales, reflecting its core revenue driver. Defence & Aerospace contributes 27%, underscoring its strategic role in India’s defence manufacturing, while Rail & Metro accounts for 19%, supported by growing investments in urban mobility and infrastructure development.

BEML has a strong pan-India presence with 4 manufacturing complexes, 12 regional offices, and 16 district offices. Its network spans key industrial and defence hubs, including Bengaluru, Mysuru, Kolar Gold Fields, and Palakkad. This widespread footprint enables efficient operations, customer support, and timely delivery across defence, mining, construction, and metro sectors nationwide. 

 The company has strong multi-sector execution across defence, rail, aerospace, mining, and exports. Deliveries include 9,400+ defence vehicles, 18,000+ rail coaches, 2,105 metro cars, and 33,880 mining machines. Aerospace milestones span LCA and missile programs, while exports exceed 1,400 equipment units to 73 countries, underlining diversified capabilities and global reach.

BEML highlights strong execution in H1 FY26, marked by the highest-ever order book of  Rs 16,342 crore. Key milestones include indigenous development of a 21-cum electric rope shovel, progress on Vande Bharat Sleeper trials, induction of defence equipment, and expansion of rail, defence, and manufacturing facilities across Bengaluru, Kolar, Bilaspur, and Bhopal.

BEML Limited, a leading public sector enterprise under India’s Ministry of Defence, manufactures heavy equipment for defence, mining, construction, and rail sectors. With a strong domestic base and global reach across 72 countries, BEML plays a vital role in India’s infrastructure growth and self-reliance in strategic industries.

Written by Abhishek Singh

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