BEL margin rebounds sequentially, but remains below last year's Q2 level
Revenue momentum improved costs sequentially, lifting operating margin 2.82 percentage points, although year-on-year margin narrowed as expenses grew faster.
Filed 30 Oct 2026, 17:02 IST · after market close · Bharat Electronics Ltd (BEL)
Key takeaways
- Consolidated revenue rose 32.10% QoQ, while expenses rose 27.13%, lifting operating margin 2.82 percentage points.
- Year-on-year, expenses grew 29.27% against 26.51% revenue growth, cutting operating margin 1.54 percentage points.
- Net profit rose 46.07% QoQ to Rs 1,540.37 cr, while other income contributed 9.51% of pre-tax profit.
Price around the results
Revenue acceleration widened the sequential margin
BEL’s consolidated revenue increased 32.10% QoQ, while expenses grew 27.13%. The slower cost growth lifted operating margin by 2.82 percentage points to 27.85%, and net profit increased 46.07% QoQ to Rs 1,540.37 cr. This was a clear recovery from the 25.03% operating margin in Q1FY27.
Year-on-year cost growth diluted operating leverage
The year-on-year comparison was less favourable: revenue grew 26.51%, but expenses rose 29.27%. That gap reduced operating margin by 1.54 percentage points from Q2FY26. Net profit growth was also supported by a 0.54 percentage-point reduction in the tax rate, while other income accounted for 9.51% of pre-tax profit.
Margin recovered from Q1 but remains below recent peaks
The 27.85% operating margin was below 29.39% in Q2FY26, 29.74% in Q3FY26 and 29.16% in Q4FY26, despite recovering from 25.03% in Q1FY27. Against 75 Industrials peers that have reported the same quarter, BEL’s margin was 15.42 percentage points above the 12.43% sector median.
No immediate market reaction after the post-close filing
The results were filed after market close, so there is no market reaction to assess yet. Across the last eight results, the stock rose after five and fell after three, with a median absolute move of 3.95%, indicating a mixed historical response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,328 cr | ₹5,547 cr | +32.10% | +26.51% |
| Other income | ₹196 cr | ₹180 cr | +8.87% | +20.60% |
| Expenses | ₹5,287 cr | ₹4,159 cr | +27.13% | +29.27% |
| Operating profit | ₹2,041 cr | ₹1,388 cr | +46.99% | +19.90% |
| Operating margin (%) | 27.85% | 25.03% | — | — |
| Interest | ₹3 cr | ₹1 cr | +123.28% | +56.97% |
| Depreciation | ₹171 cr | ₹161 cr | +6.69% | +35.42% |
| Profit before tax | ₹2,063 cr | ₹1,407 cr | +46.65% | +18.80% |
| Tax | ₹523 cr | ₹352 cr | +48.37% | +16.29% |
| Net profit | ₹1,540 cr | ₹1,055 cr | +46.07% | +19.67% |
| EPS (₹) | ₹2.11 | ₹1.44 | +46.53% | +19.89% |
Operating margin of 27.85% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin stays above 27.85% after the Q1FY27 recovery.
- Whether expense growth remains below revenue growth after the Q2FY27 QoQ gap of 27.13% versus 32.10%.
- Whether the tax rate remains close to 25.34% and other income stays within 9.51% of pre-tax profit.