BEL's Q1 revenue rose 24.94%, but margin fell to 25.03%
Expenses grew faster than sales year on year, while quarterly margin fell 4.13 percentage points and other income made up 12.81% of pre-tax profit.
Filed 27 Jul 2026, 16:06 IST · after market close · Bharat Electronics Ltd (BEL)
Key takeaways
- Consolidated revenue grew 24.94% year on year, but operating margin fell 2.86 percentage points to 25.03% as expenses grew 29.90%.
- Net profit rose only 8.82% year on year to Rs 1,054.53 cr, with other income contributing 12.81% of pre-tax profit and the tax rate rising 0.29 percentage points.
- Quarter on quarter, revenue fell 45.75% and operating margin narrowed 4.13 percentage points, extending the margin decline from 29.16% in Q4FY26 to 25.03%.
Price around the results
Year-on-year growth did not translate into profit growth
Bharat Electronics' consolidated revenue increased 24.94% year on year, but operating profit grew only 12.12% because expenses rose 29.90%. Net profit growth was weaker at 8.82%, as depreciation increased 32.92% and the tax rate moved up 0.29 percentage points. Other income accounted for 12.81% of pre-tax profit, making reported earnings less purely operating in composition.
Quarterly margin loss reflects faster cost growth
Revenue fell 45.75% from Q4FY26, while expenses declined by a smaller 42.58%; that cost pattern reduced operating margin by 4.13 percentage points. Interest expense fell 27.95%, but that was not enough to offset the operating pressure. The 25.03% margin was still 10.53 percentage points above the 14.50% median for 22 Industrials peers that have reported, placing BEL 21st from the bottom.
Margin has now fallen for two consecutive quarters
Operating margin had improved from 27.89% in Q1FY26 to 29.74% in Q3FY26, before easing to 29.16% in Q4FY26 and 25.03% in Q1FY27. This makes the latest decline part of a two-quarter weakening after the earlier recovery. The sequential comparison is more severe than the year-on-year one because Q4FY26 revenue was Rs 10,224.43 cr.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no current-session reaction to assess. Across eight recent result reactions, the stock rose five times and fell three times, with a median absolute move of 1.01%. That history provides a relatively small usual move against which the next trading response can be compared.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,547 cr | ₹10,224 cr | -45.75% | +24.94% |
| Other income | ₹180 cr | ₹122 cr | +47.20% | +4.94% |
| Expenses | ₹4,159 cr | ₹7,243 cr | -42.58% | +29.90% |
| Operating profit | ₹1,388 cr | ₹2,982 cr | -53.44% | +12.12% |
| Operating margin (%) | 25.03% | 29.16% | — | — |
| Interest | ₹1 cr | ₹2 cr | -27.95% | -19.44% |
| Depreciation | ₹161 cr | ₹173 cr | -7.17% | +32.92% |
| Profit before tax | ₹1,407 cr | ₹2,930 cr | -51.98% | +9.25% |
| Tax | ₹352 cr | ₹703 cr | -49.89% | +10.56% |
| Net profit | ₹1,055 cr | ₹2,226 cr | -52.63% | +8.82% |
| EPS (₹) | ₹1.44 | ₹3.04 | -52.63% | +8.27% |
Operating margin of 25.03% compares with a Industrials sector median of 14.50% across 22 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 25.03% after two consecutive quarterly declines.
- Whether expenses grow more slowly than revenue after rising 29.90% year on year.
- Whether other income remains below 12.81% of pre-tax profit.