BEML profit drops 37.46% YoY despite Q4 revenue growth
Costs rose faster than sales, cutting operating margin 10.44 percentage points YoY, while the sequential margin rebound was sharp.
Filed 29 May 2026, 16:41 IST · after market close · BEML Ltd (BEML)
Key takeaways
- BEML’s consolidated Q4FY26 net profit fell 37.46% YoY to Rs 179.82 cr as expenses grew 23.79% against 8.57% revenue growth.
- Operating margin recovered 14.8 percentage points QoQ to 15.13%, but remained 10.44 percentage points below Q4FY25.
- The stock’s initial reaction was muted at -0.13%, versus a 7.38% median absolute move after its last eight results.
Price around the results
Revenue recovered sharply, but earnings stayed below last year
BEML reported consolidated Q4FY26 revenue growth of 8.57% YoY, but operating profit declined 35.74% because expenses rose 23.79%. Net profit fell 37.46% YoY, with EPS declining 68.73% to Rs 21.59. Sequentially, revenue rose 65.63% and the company moved from a net loss of Rs 22.38 cr in Q3FY26 to a profit of Rs 179.82 cr.
Margin rebound masks a steep year-on-year contraction
Operating margin expanded 14.8 percentage points QoQ because revenue grew faster than expenses, which rose 41.03%. However, the margin was down 10.44 percentage points YoY as costs grew faster than revenue. Other income contributed 4.07% of pre-tax profit, so it was not the main source of reported earnings; the YoY tax-rate change was limited to -0.58 percentage points.
Q4 margin improved after a volatile FY26 path
The 15.13% operating margin was higher than 0.33% in Q3FY26, 8.72% in Q2FY26 and -7.77% in Q1FY26, but below 25.57% in Q4FY25. Across 71 Industrials peers that had reported the quarter, BEML’s margin was 0.53 percentage points below the 15.66% sector median.
Facilities and export orders broaden the reported business pipeline
The presentation said BEML inaugurated the ADITYA high-speed rail facility and a rolling-stock facility in Bhopal under the BRAHMA Project. Management reported record export order bookings of $107 million and a repeat order of $37 million. It also said opportunities included $19.2 million in West Asia, $20 million in North Africa and an approximately $10 million CIS bulldozer order, while citing participation in the Tel Aviv Metro and Dublin MetroLink projects.
The market reaction was ordinary by BEML’s recent results history
After the results, the stock was down 0.13% on the anchor date, before showing a 1.10% gain after five sessions and a 7.73% gain after 30 sessions. Across the last eight results, it rose after two and fell after six, with a median absolute move of 7.38%, making the initial reaction unusually small by that measure.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,794 cr | ₹1,083 cr | +65.63% | +8.57% |
| Other income | ₹10 cr | ₹4 cr | +158.29% | +160.31% |
| Expenses | ₹1,523 cr | ₹1,080 cr | +41.03% | +23.79% |
| Operating profit | ₹272 cr | ₹4 cr | +7484.08% | -35.74% |
| Operating margin (%) | 15.13% | 0.33% | — | — |
| Interest | ₹14 cr | ₹12 cr | +21.19% | +8.82% |
| Depreciation | ₹22 cr | ₹21 cr | +5.79% | +20.87% |
| Profit before tax | ₹245 cr | ₹-25 cr | — | -37.96% |
| Tax | ₹65 cr | ₹-3 cr | — | -39.28% |
| Net profit | ₹180 cr | ₹-22 cr | — | -37.46% |
| EPS (₹) | ₹21.59 | ₹-2.69 | — | -68.73% |
Operating margin of 15.13% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.13% | +0.57% |
| Next session | +0.40% | — |
| 5 sessions | +1.10% | +2.91% |
| 15 sessions | +2.35% | — |
| 30 sessions | +7.73% | — |
Volume on the results session was 0.92× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- BEML is exploring an additional $19.2 million order-booking opportunity in West Asia.
- BEML estimates a $20 million mining-equipment opportunity in North Africa.
- A major CIS bulldozer order of around $10 million is in its final stages.
Expansion
- BEML inaugurated the new ADITYA facility for high-speed rail.
- BEML inaugurated a new rolling-stock facility at Bhopal under the BRAHMA Project.
New orders
- BEML achieved its highest-ever export order booking of $107 million.
- BEML secured a $37 million repeat order.
New initiatives
- BEML signed an MoU with DMRC for infrastructure participation in Tel Aviv Metro.
- BEML is participating as a key rolling-stock provider in the Dublin MetroLink consortium.
What to watch
- Whether operating margin holds above 15.13% after the Q4FY26 rebound.
- Whether expense growth moderates from 23.79% YoY against revenue growth of 8.57%.
- Progress on the reported $107 million export order bookings and the $37 million repeat order.