Bharat Electronics (BHE IN) – Q2FY27 Result Update – Strong execution; Order pipeline remains intact – Upgrade to ‘BUY’
Published on 04 Nov 2026
Management has proactively initiated QRSAM-related activities to accelerate execution and mitigate potential delays. Other key order prospects, including Shatrughat, Samaghat and HAMMER, along with P-75I (potentially deferred to FY28), provide additional order pipeline visibility. BEL is witnessing increasing traction in drones and counter-drone systems, with larger orders expected over the next 1–2 years. Missile electronics, seekers, electronic warfare and cybersecurity remain key medium-to-long-term growth areas. Management expects to meet its FY27 guidance, supported by improving delivery performance, supply-chain readiness and a strong order pipeline. The stock is currently trading at PE of 33.7x/28.8x on FY28E/FY29E. We upgrade our rating from ‘Accumulate’ to ‘Buy’ factoring in strong order and revenue visibility from large program opportunities like QRSAM & NGC. We roll forward to Sep’28E valuing the stock at a PE of 40x Sep’28E (40x Mar’28E) arriving at a TP of INR490 (INR452 earlier)
