Macquarie maintains ‘Outperform' call on BEL after Q4 results beat estimates, confident in FY26 margin expansion
By Markets Desk Published on May 21, 2025, 08:25 IST
Macquarie has reiterated its 'Outperform' rating on Bharat Electronics Ltd (BEL) with a target price of ₹400, calling the Q4FY25 performance a strong finish to the year. The company's robust order book and margin expansion guidance have improved near-term visibility, despite a delay in the QR-SAM order.
BEL reported an 18.4% YoY rise in net profit to ₹2,127 crore, with revenue up 6.8% to ₹9,149.6 crore. EBITDA surged 23.2% YoY to ₹2,816 crore, with margin expanding to 30.8% from 26.7%.
Macquarie noted that EBITDA and PAT beat consensus estimates, driven by stronger operating leverage and cost control. FY26 margin guidance came in better than expected, and Macquarie sees BEL's past R&D and long-standing defence relationships as increasingly productive.
Disclaimer: This article is based on the brokerage report by Macquarie. It does not constitute investment advice.
Markets Desk at BusinessUpturn.com
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