BEML (BEML IN) – Q2FY27 Result Update – Strong execution; margin recovery remains monitorable – ACCUMULATE
Published on 07 Nov 2026
BEML reported strong revenue growth of 42.0% YoY, while EBITDA margin contracted by 206bps YoY to 6.7% due to higher material costs and an unfavourable product mix. Revenue growth was supported by improved execution, easing supply-side constraints and stabilisation of the indigenous supply chain, with Rail & Metro accounting for ~40% of revenue. H1FY27 order inflows stood at ~INR74bn, led by Rail & Metro (~75%), followed by Defence (~13%) and Mining & Exports (~12%). We roll forward to Sep’28E and maintain our ‘Accumulate’ rating with a revised TP of INR2,225 (INR2,011 earlier), at PE multiple of 26x Sep’28E (27x Mar’28E).
