BEML (BEML IN) – Q1FY27 Result Update – Strong Q1; Order Inflows remain key monitorable – ACCUMULATE
Published on 14 Aug 2026
We revise our FY28E EPS estimate +3.8%, factoring in sustained order inflows across key segments supported by strong order prospects. BEML reported strong revenue growth of 29.3% YoY, while EBITDA margin expanded by 801bps YoY to 0.2%, resulting in positive EBITDA. Revenue growth was driven by a sharp turnaround in Railways (+178% YoY) and healthy Defence execution (+25% YoY), partly offset by lower Mining revenue (-14% YoY) due to order deferments. The closing order book remained robust at ~Rs163bn (3.6x TTM revenue), with Railways contributing ~65%, Defence ~25%, Exports ~6% and Mining ~4%. The stock is currently trading at 35.6x/25.7x FY27E/FY28E earnings. We maintain our ‘Accumulate’ rating with a revised TP of Rs2,011 (Rs1,940 earlier), at PE multiple of 27x Mar’28E (same as earlier).
