₹73,015 Cr Order Book: Defence stock jumps 10% after announcing robust Q3 results

Synopsis:- The stock jumped nearly 10% after strong Q3FY26 results, supported by an order book of ₹73,015 crore. EBITDA rose 27.3% with margins improving to 29.7%. Heavy volumes of ~67.5 million shares and an RSI near 72 reflected strong buying interest, while brokerages highlighted execution strength and defence sector tailwinds.

The shares of the prominent aerospace and defence electronics manufacturer gained up to 10 percent after the company reported Q3FY26 earnings & order book position at Rs.73,015 crore.

With a market capitalisation of Rs 3,32,631.49 crore, the shares of Bharat Electronics Ltd were trading at Rs 457.90 per share, increasing around 10 percent, as compared to the previous closing price of Rs 416.35 apiece.

Q3FY26 Highlights

The shares of Bharat Electronics Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 24 percent on a year-on-year basis from Rs 5,770 crore in Q3FY25 to Rs 7,153.85 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 24 percent from Rs 5,792 crore in Q2FY26 to Rs 7,153.85 crore in Q3FY26.

Moreover, net profit increased by 21 percent on a yearly basis from Rs 1,311 crore in Q3FY25 to Rs 1,579 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 23 percent from Rs 1,287 crore in Q2FY26 to Rs 1,579 crore in Q3FY26.

BEL reported a 27.3% year-on-year rise in EBITDA to  Rs 2,127 crore from  Rs 1,670 crore. Better cost control and operating leverage led to margin improvement, with operating profit margin expanding to 29.7% from 28.9% a year ago, underscoring sustained profitability momentum.

The company’s order book stood at  Rs 73,015 crore as of January 1, 2026, marginally lower than  Rs 74,453 crore reported on October 1, 2025. The slight decline indicates steady execution and order inflows broadly keeping pace, reflecting stable demand visibility and a healthy project pipeline going forward.

Brokerage Comments

As per the Sources, Brokerages Nuvama and Kotak Institutional Equities had surpass estimated revenue growth of 17-18% YoY. Nuvama believes the sector is entering a transition phase, with a greater focus on execution and delivery across programmes. While incremental ordering should continue, the key monitorable is execution pace amid supply chain risks.

Hence, recent valuation moderation offers selective entry opportunities, with a preference for defence electronics and subsystem players given superior execution visibility and cash conversion, supported by sustained capex, indigenisation momentum, and export traction.

However, PL Capital said strengthening India–EU defence cooperation could significantly benefit Indian defence companies. Alignment between Atmanirbhar Bharat and the EU’s strategic autonomy goals may open opportunities under the EU’s ReArm initiative. Enhanced maritime cooperation and closer coordination mechanisms could improve regional security, while positioning India as a trusted defence partner as Europe diversifies suppliers and de-risks its defence supply chains.

Technical side

Bharat Electronics Ltd witnessed a strong surge in trading activity, with volumes jumping to around 67.5 million shares, nearly 3.4 times the daily average, indicating aggressive buying interest. The RSI moved up to about 72, entering the overbought zone, reflecting strong momentum.

Bharat Electronics Limited (BEL) is a leading Indian defence electronics company and a Navratna PSU. It designs and manufactures advanced electronic systems for defence and aerospace applications, with a growing presence in non-defence segments such as homeland security, smart cities, and space electronics, supporting India’s self-reliance and technological advancement.

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