Good evening everyone. Thanks, Ikra.

On behalf of Motilal Oswal Financial Services, I welcome you all for Bharat Electronics Q3 FY26 results conference call. I would like to thank the management for giving us the opportunity to host the call.

From the management side, we have with us Mr. Manoj Jain, Chairman and Managing Director; Mr.

Damodar Bhattad, Director Finance and CFO; Mr. S.

Sreenivas, Company Secretary. Without taking much time, I hand over the call to Mr.

Manoj for his opening remarks, and after that, we will open the floor for Q&A. Over to you, sir.

Thank you, madam. Good afternoon, everybody.

I will just briefly summarize the financial highlights up to Q3 for the financial year '25-26. Till Q3, we have achieved revenue from operations of ₹17,302 crore as compared to ₹14,538 crore which was up to Q3 of last year, with overall growth of 19%.

The profit before tax increased to ₹5,171 crore up to Q3 as compared to ₹4,242 crore up to Q3 last year, with a growth of 22%. The profit after tax also increased to ₹3,845 crore as compared to ₹3,183 crore up to Q3 last year, with a growth of 21%.

The EBITDA has increased to 30% up to Q3 as compared to 28% up to Q3 last year. The earning per share also increased to ₹5.26 up to Q3 as compared to ₹4.36 last year same time.

Order book position as on 1st January 2026 is ₹73,015 crore and as on 28-01-2026, as on today, is ₹73,450 crore. Order acquires till 1st January 2026 is ₹18,100 crore and till today is ₹19,300 crore.

This is a brief highlights of our financial performance up to Q3. Now the floor is open for question and answers.

Thank you so much for this opportunity. Good evening and congratulations for very good set of results.

My first question is pertaining to the guidance for FY26 now, given that we have reported about 19% sales growth in first nine months and we have received closer to ₹19,300 crore of orders. Are we revising our sales growth number upwards?

Considering that there is also a finalization of NGC order which is remaining with shipbuilders, are we anticipating any spillover of order from NGC from this year to FY27, which we was assuming earlier during Q2 call?

Regarding guidance, as we told, we are consistent about our guidance. Whatsoever guidance we gave at the start of the year, we are maintaining that, and we are confident that we will achieve or exceed this guidance.

Regarding NGC, yes, we told after Q2 also that there is chance of spilling over orders to next financial year. Now also, we are quite hopeful that maybe around ₹3,000 to ₹5,000 crore deal we may get before March end, and remaining leads or remaining orders may come in Q1 and some of them may be Q2 of next year.

Definitely by next year Q2, we will get all the orders of NGC order because it is split across multiple line items and a separate order we are expecting for those line items. That's why that is our final call right now that around 20% to 25% of the orders we may get before March, and remaining orders in Q1 and Q2 of next year.

Understood. Are we including these NGC orders in our guided number of ₹27,000 crore for FY26?

Yes, around ₹3,000 to ₹4,000 crore is included in that of '25-26 because we expected this conclusion because mostly at GRSE and GSL level, it is already concluded with government. They are now in the stage of final negotiation and other things for these line items, including specs finalization.

Some of these type of technicalities only are going on. We are confident that before March, we will get ₹2,000 to ₹3,000 crore minimum this year, and that is included in this ₹27,000 crore guidance which we have given.

Understood. Second question is on the margin side.

If I look at this quarter margin, it was closer to 30% at EBITDA level. I think other expenses are down by about 15% vis-a-vis our 24% top-line growth.

Any one-off in other expenses that we had in third quarter? For nine-month, our EBITDA margin is closer to 29%, which is much higher than guided number of 27%.

Are we expecting a major outperformance in terms of EBITDA margin for full year '26?

No. As of now, we maintained the EBITDA margin of 27% what we have guided for the current year.

Because it's a composition of products which we sell. Up to December what we have sold and from January to March, the composition will be slightly different.

We maintain the EBITDA margin of 27% only for the current financial year.

Pertaining to specific third quarter, about other expenses declining by 15% year-on-year?

Other expenses declining. Just a minute.

I'll just look into it and tell you. We can move on to the next question.

I'll just brief you on that.

Somebody else can ask the question. By that time, we are just getting the data.

While replying to his answer, we will reply on this also.

Good evening, sir. Thank you so much and great set of numbers.

I think along similar lines, I just wanted to know EBITDA margin improved sequentially. What's your outlook for margin stability through FY26 and into FY27?

Are there any headwinds from input costs or manpower expenses that we should expect for FY27? Also, can you elaborate on the key drivers behind this margin expansion?

Was it product mix, cost efficiencies, or pricing?

FY26, as we told, we are maintaining the margin of 27%, EBITDA margin of 27% for the current year. As far as the next financial is concerned, we'll be giving our guidance when we meet next time.

We'll be giving the guidance for '26-27 later on. Presently, we maintain the EBITDA margin of 27% for the current financial year.

As regards to your composition, yes, different product mix is there. That's how it leads to this slightly higher EBITDA margin in the up to December.

Overall, for the current financial year, still we maintain the EBITDA margin of 27%, yes.

Regarding this manpower expenses, as you have told, we are not anticipating much change in the manpower expenses, which is around 14% typically of our turnover. We will have more or less similar figures only.

As told earlier also, pay revision or this labor codes, etc. are not going to affect us too much because we are more or less aligned with this labor codes also.

That, as well as the pay revision, which may affect for 3 months something extra. Because of our increased turnover and other parameters, we are not seeing much change in our manpower costs as a percentage of turnover.

The key driver for better EBITDA margin typically is product mix. Definitely, the indigenization, which we are keep on increasing.

Our value addition is becoming more and more. Our material cost in our overall turnover is reducing, although slightly.

It is in the reduction side only, and that is mainly because of more and more indigenization, more and more involving our MSME friends. Because of that, a little bit more push on positive side for the EBITDA margins are there.

Sir, one more question. In terms of execution pace, which is keen the defense electronics, are there any delays in project deliveries due to supply chain constraints or approvals?

If so, how is BEL mitigating those risks? In case there is anything for future products that you see or anything currently which is there?

Supply chain management is the real job of companies like us, definitely. We are closely watching it, closely monitoring it at various levels.

Overall, what we had seen last year, last year to this year was much more comfortable for us. Next year to follow, it will be much more better definitely.

This year also, we are targeting around 95% of our items we will deliver on time. That is our internal target.

Next year, we wanted to make it 100%. There are some supply chain-related constraints because of some of the items, especially semiconductors and some rotary joints or some other critical items which are not manufactured in India.

There are some supply chain management-related challenges. We are foreseeing them a bit before and trying to mitigate that a bit early so that overall delivery to our customers is not affected.

Okay. Thank you so much, sir.

Hi, sir. Thank you.

Am I audible?

Yeah.

Yes, sir. My first question, sir, with respect to the orders of this year since 9M is quite strong, we'll definitely be doing more than ₹27,000 crore top-line.

Even on order inflow, we have guided ₹27,000 crore. Just wanted to understand you have been, of course, highlighting about at least 13%, 15% growth even for next 2, 3 years.

Just wanted to understand apart from QRSAM, which is expected to sustain growth, you will be needing more than ₹30,000, ₹35,000 kind of intake. Does that give you confidence that we are going to have this kind of intake?

Are there any medium to large orders which you're expecting in next 12 to 18 months, which kind of ensures that you win more than ₹30,000, ₹35,000 next financial year to sustain growth?

Certainly. Once we have committed to you that we are going to have a growth of more than 15% year-on-year, for that we have taken care of for next 3 to 4 years at least what are the expected orders in pipeline.

Based on that and their conversions timelines, based on that only we have given this confidence or this commitment to you. There are so many projects in pipeline for next financial year other than QRSAM.

We are closely watching that, and definitely it will be more than ₹25,000 crore which we are seeing minimum other than QRSAM. For QRSAM itself, we are hopeful that we may get by this year itself, means by Q4 itself.

Still we are more than 90% confident of getting that now itself. Some few percent chance only to spill over to Q1 of next year.

We are putting all our efforts to see that QRSAM also comes this year itself. That will give me around ₹30,000, ₹32,000 crore additional orders in my kitty.

In addition to that, minimum ₹25,000-plus crore additional are already pipelined in next financial year. We are confident that we'll have a steady growth of more than 15% in years to come.

As regards somebody has asked query on other expenses from quarter-to-quarter and what is reason for decrease, actually cumulatively the other expenses have increased only. For quarter-on-quarter, last year the provisions were slightly more, because of which the other expenses are decreased now.

It's due to provisions decrease current year. Quarter-on-quarter, there's a provision decrease.

Overall, cumulatively for 9 months, total other expenses are increased only.

Yeah. Right, sir.

One clarification on NGC. You said we are accounting for ₹3,000 to ₹4,000, which is roughly 25%.

That ₹10,000 to ₹12,000 will be probably coming in H1, the remaining portion, right? Is that the right understanding for NGC?

Yeah. Correct.

We will try to get it in Q1 of next year, but it may spill over to Q2 maximum. In H1 of next year, we are hopeful to get remaining around ₹10,000 to ₹12,000 crore in next year.

Right. Lastly, since we had very strong margins and even the utilizations must be going up, what stops us to revise the guidance?

Because the ask rate for guidance at 27% for 4Q is only 25%. Are we expecting the product mix to be not favorable in 4Q or maybe next year as well?

Because I think comfortably we can do more than 28%, 29%. What is stopping us to not revise that since we have already completed 9 to 10 months of the financial year?

See, overall guidance for the current year has been given at 15%, okay? Quarter-on-quarter, we have not given.

There are some quarters where the performance Sir,

EBITDA margin I was saying. Yeah.

EBITDA margin, 27%.

Okay.

EBITDA margin, yes, because see, again, as we told, it's about the product mix only. Product mix has been more favorable up to December and maybe slightly lesser favorable from this time on.

That's why

we feel that the EBITDA margin will be maintained around 27%.

Understood.

It will not go below 27%, that much we are ensuring. I can assure you it will not go below 27%, which we started our year with,

and

we are continuously going towards that only. There should not be any doubt in the minds of you that it will be below 27%.

That much we ensure.

Yeah. Sir, last question on the EU deal.

There has been a talk about defense cooperation in that document and kind of synergy between the Indian players and export to Europe. Are any assessment you have done that leads you to some kind of product exports in Europe?

It is too early to tell that right now. Definitely, it is opening up a new markets for us.

There is one more thing, a new joint research opportunities also, because I think they have told that there is a big research fund also available with the EU where they want to have some joint development. There definitely, companies like BEL, who are R&D-focused and technology-focused company, we will have good tie-ups for a good joint research and where we may expect some funds flow also from research point of view.

Research will definitely generate some more business. We are expecting more and more business from them.

Today, we have not quantified that. Maybe when we meet in April, by that time, we will quantify how much more is there.

Based on that only, we will give you the better guidance for next year.

Understood. Thank you so much, sir, and all the best.

Good evening, sir, and congratulations for a good set of numbers. A couple of questions from my side.

The first one is essentially on recently, we have been hearing a lot of shortage with respect to semiconductor chips, as a result of which the prices have gone up significantly in the market. Are you also seeing any impact of that in your bill of materials?

Can you quantify for us what percentage of COGS would this semiconductor chips comprise?

Semiconductor chips are very important component of BEL designs, no doubt on that. Knowing this shortage of chips and especially sometimes one particular type of chips are in shortage, we had already made design efforts to make alternate designs.

Based on that, today we are not feeling that hit because of shortage of chips. Our designs are now much more generic, I should say like that.

We are not foreseeing any major challenge for us because of availability of chips or chips shortage. Overall, I think chips we are having almost total type of semiconductors are around 2,000-plus type of different type of semiconductor and other chips are there in our total project portfolio.

Of course, we are there indigenizing a few of them, and few more we are expecting government to come out with some plans with the help of other startups and others. Overall, we see that chips should not become a bottleneck for us in years to come.

We are coming out with that type of a plans of indigenizing those chips. Firstly, we want to start with some critical chips.

We have already done some investment for microwave-related important chips. We have designed our own chips to avoid this type of shortages and these type of dependencies.

A few of digital chips also, fabless designs we have done. All the fabs which are coming in India, we have signed an MoU with them, and early engagement already started with them to leverage on strengths of them manufacturing in India.

With these type of things, we are confident that chip-related issues or surprises should not affect BEL that much. That much only I can tell you at this point of time.

Sir, as a percentage of COGS, how much would this chip cost be? Just a broad estimate.

Out of the BOM, bill of material, let us say, bill of material is 100. In that 100, around 20% to 30% typically will be semiconductor chips typically, because remainings are some assembly, some other components, mechanical components, testing, all other things put together are there.

Semiconductor chips, specialized semiconductor chips are of the order of this percentage.

Wonderful. Sir, second question is with respect to the execution in this quarter.

What would be, if you can break down the revenue broadly into the execution by platforms, that would be great.

Previous quarter, means Q3, or you are asking about Q4?

Sir, Q3. Q3.

Q3. Okay.

Major orders we have executed in Q3 up to Q3 is mainly Up to Q3, we have executed mainly LRSAM project, Himshakti project, Battlefield Surveillance project, Lynx fire control solution, Akash Army, LRUs for LCA Mark 1A, all the digital LRUs, and Shakti EW system. These are the major orders which we have executed up to Q3, and which these seven projects itself would have accounted for around ₹5,000-plus crore.

Okay. For Q4, what are the major platforms for execution?

Plans for execution in Q4 are again LRSAM, Akash Army, Himshakti, Arudra MPR will be added in the kitty, D-29 EW system we will supply a bit more because last time it was Q3 it was a bit less number, now around ₹500-plus crore we may supply in Q4, BMP-2 upgrade also now we will supply a big numbers, and LRUs for LCA definitely will continue. This is around ₹4,000 to ₹5,000 crore comes from these six, seven major projects in Q4.

Understood, sir. Thank you so much and all the best.

Thank you very much for the opportunity, sir. My first question is on the Akash missile program.

While it is under execution wherein Bharat Dynamics is the lead integrator and we supply to them, why you haven't included Akash Next Generation in your near term or the next 1-year pipeline? What would be the size and probable timeline for this large project?

Okay. As we have rightly told, the Akash project which we are executing right now is called Akash Prime.

Lead bidder was BDL, and we are doing production of that items, and some testing and other integration, some other trials, etc. were done.

We are hopeful of executing more than 90% of that order before this financial year itself. Akash-NG per se is the next-generation Akash, for which trials are already completed.

Now the process of AON approval will be put up. That's why we are not that much confident that by next year end we may get.

It may spill over to next to next year. In '26-27, we may not get the confirmed order of that, but definitely '27-28 we have planned that.

If we are lucky, we may get in the Q4 of next year. We know the process takes its own time also.

AON and then approval, then RFP issuing to BEL. This one will be issued to BEL only, not BDL.

Hoping maybe Q4 of '26-27, else it will be in '27-28 only we may get the order for this.

Understood, sir. Just a small clarification.

You said we will be the lead integrator for Akash-NG and not BDL, right?

We will be. Air Force is we take, Army is by BDL.

Akash-NG

is right now the requirement is from Air Force, so that's why we are the lead bidder for this. For Army also, we want to be.

As of now, Army Akash is handled by BDL. Air Force is led by BEL.

Of course, for QRSAM program, Army and Air Force both, we are the lead bidder. That's why there is some small confusion happens sometimes.

Akash-NG, we are the lead bidder, and that's why it will be handled by BEL. Back-to-back, we will have arrangement with BDL for the missile portion.

Any size of the program you can indicate?

As of now, because again once AON is done, then only the exact configuration will be finalized. Because the configuration or the requirement keeps changing.

How much quantity they want based on that. Based on the present discussion, it is of the order of ₹2,500 to ₹3,000 crore as of now.

When AON will be done, before than that they will have their own internal assessment about exact quantities which are required. It may vary, maybe generally on the plus side only typically.

Right now, the estimate is between ₹2,500 to ₹3,000 crore.

Understood. Secondly, there seems to be a lot of delay in the order placement for Shatrughat and Samaghat electronic warfare systems since these two have been in the development stage for a long time now.

Any particular reason for the slow movement in these two programs? When will we finally get these orders?

Okay. Let me tell you, Shatrughat and Samaghat, both projects, there were small delays because of the rigorous trials, etc.

That phase is over. Trials were over.

Trials were successfully concluded. The lead person is DRDO and well supported by BEL.

After that, RFP was issued to BEL. We have given RFP response also.

Case is moving very, very fast. Cost audit also is done.

We are hoping, out of the two programs, maybe one of the program we may get this year itself by Q4. Otherwise, definitely they are in H1 of the next year, both the programs.

We are still trying because things are moving in a really positive way, very, very fast way right now. We are expecting one of the program, the Shatrughat, we may get order by Q4 of this year itself.

Otherwise, of course, both the programs definitely by H1 we are going to get. That much I can assure you.

Thank you very much for answering my questions, and all the very best.

Thanks for the opportunity, and congratulations, team, on another solid quarter. Sir, I wanted to get an understanding of, based on our guidance of roughly ₹27,000-odd crore, and this was prior to the EP getting approved.

Now we're looking at a balance of around ₹8,000-odd crore of inflows that are to flow. In our expectations, what programs are going to constitute this ₹8,000 crore of balanced inflows?

Mainly to LCA order from HAL, we are expecting very soon, anytime, because we have done conclusion of price also. We may get that.

That is the biggest order in this quarter for us. As I told you, NGC and the Shatrughat, these two we are hoping to get by this year itself.

Remaining orders are there, two, three more bigger order of around ₹1,000-plus crore. We are confident we will cross ₹27,000 crore without QRSAM, definitely.

Got it, sir. If you could indicate the size of these three major orders that you mentioned.

I understand that for NGC you mentioned ₹2,000 to ₹3,000 crore in this current year. For Shatrughat and the LCA LRUs that you spoke about, any indication as to the size of these orders?

Shatrughat will be around ₹3,000 crore. LCA order also will be around ₹2,400 crore plus roughly.

Got it, sir. My second question was with regards to the provision write-backs that you mentioned in this quarter.

What would be the size of these provision write-backs that you've done and

Provisions write-back what we have done is overall ₹256 crore. ₹256 crore.

Got it, sir. I have more questions.

I'll get back in the queue. Thank you so much.

Thank you.

Hi, good evening. Thanks for the opportunity, and congratulations on a great set of numbers.

My question is with respect to the QRSAM project. Could you please break down the total project cost into key components?

Who will be the key suppliers for the same? For instance, missiles go to BDL.

It would be great if you could quantify the same and also mention what would be the order values for vehicles, launchers, etc., and how much of the content will be handled by BEL in-house?

QRSAM is a very complex project consisting of various big subsystems. Missile is of course the largest subsystem, and missile will go to BDL from BEL.

BEL will place an order. Once we receive the order, we will place an order to BDL about the missile.

Missile order itself will be roughly around 30% of the total order value roughly, I'm telling you. That will be there.

We will see what else we can share with you. Remaining orders will be executed by BEL.

Definitely, we have our large ecosystem of industry partners for QRSAM program. We jointly with them definitely will execute the remaining portion, which is around 70% as you can say, will be executed by BEL with other industry partners of BEL.

Definitely BDL is our, of course, the largest partner in that way, because the missile comes from him. Of course, in missile also, some of the subsystems we will jointly make.

Some of the electronic subsystems also we will jointly make. That is the agreement between BEL and BDL.

Overall, this program will definitely give a boost not only to BEL and BDL, it will give a major boost to all the major industries in India.

Within that 70%, could you quantify how much would be handled by BEL in-house?

As such, we don't want to quantify at this stage. Because once we receive the confirmed order with exact quantities, then only we can say this much portion is going to L&T or this much portion is going to other vendor, etc.

like that. Today, we cannot tell you that.

Definitely, it is based on the approved vendor list of DRDO. Because it is a DRDO-developed project, where some vendors for some line items also are defined by DRDO.

As per the configuration list given by them only, the orders will be placed among those approved vendors which DRDO has finalized. Overall integration definitely will be done by BEL, and overall offering as integrated system will be done by BEL.

That is as per the agreed philosophy between BEL and DRDO. It is as per the LATOT document which is signed between BEL and DRDO.

That type of arrangement is there. That is common to all DRDO projects.

In every DRDO projects, in the LATOT document, they will quantify the total configuration lists of major subsystems. Those subsystems, we have to take from those vendors.

In QRSAM program, because it is a very large program, DRDO and BEL jointly have developed not only single vendor, in most of the line items, we have developed alternate vendors also. Because of that, we hope that any surge capacity which is required for this program will be sufficiently handled.

This is done as per the configuration list which is finally given by DRDO to us. Based on that only, we will give this individual line item or sub-modules-related orders to different stakeholders.

Understood. Following up on QRSAM, once the project enters execution in FY28 or '29, understand that execution will be spread over 4 to 6 years.

What sort of a margin impact do you anticipate here considering a large part of the program sort of gets outsourced?

No. It will be more or less similar like Akash, which we are handling.

Something like that only, outsourcing will be more or less similar in QRSAM program. We are anticipating what type of a margins will be there in this program, definitely.

When we will come out with year-on-year guidance, at that time we will see how much QRSAM will contribute to that. Based on that only, we will give you the overall guidance in that year projections.

Understood. Lastly, sir, on exports, any key export opportunities that you see over the next 12 to 18 months?

Definitely, export opportunities are there in all the areas of BEL's operation. We are doing a focused attempt to increase our export turnover from presently 3% to 4% to 5% in near future and overall 10% in a long term.

That is our plan or vision. Some few orders which we are expecting in Q4 are related to satellite communication equipments, communication equipments, the TR modules which we are regularly getting from France, the data link projects, and operationalization of our coastal surveillance systems for various countries.

These are some of the major leads which will convert into a reality in Q4.

Understood. On the non-defense side, I think the medium to longer term guidance or aspiration is to have the mix split in say 10 to 90 between non-defense and defense.

Any key incremental opportunities that you see on the non-defense side to be materialized over the next again 12 to 18 months?

Certainly. As you also told, right now our non-defense is around 6%, 7% type of thing only, which we want to definitely cross 10%-plus in near future.

Long term, our aim is to make it 15% and beyond. For that, continuous efforts are being done, especially in railway and metro segment.

We have got good leads. Kavach program is going in right direction.

Our CBTC program also is coming to almost a finishing touch. PSD, platform screen doors, we have got some orders and some more good leads are there for us.

That is related to rail and metro. In addition, we have got very good leads and very good orders related to airport authority, means aviation sector.

From HAL, we received the order. From Airport Authority, we have received orders.

Many more orders are in pipeline related to Airport Authority, related to radars, related to our air traffic management systems and other related subjects. These two itself will give us a very good lead in non-defense.

Space will be partially defense, partially non-defense for us. That also will give some contribution for non-defense segment for us.

These three are the main sector where we are aiming right now big leads. Of course, our cybersecurity business, data center type of business also will give us reasonably good non-defense leads.

Put together these, we are confident that in near future, we will try to cross 10% of our turnover through these non-defense leads.

Got it, sir. All the very best.

Thank you so much. Appreciate it.

Good evening, sir. Sir, first question is on the data center opportunity.

If you can elaborate on what exactly is our offering here? I understand earlier this year an order has also been won, right?

Yeah.

Yeah. Orders what we have won is a few hundred crores, which is not our aim.

Our aim is to quickly get a few thousands of crores in this data center business. Main aim is that we wanted to give a secure data center solution.

Combined not only as a data center, as a combined value-added solution with AI, cybersecurity, and other components built-in to these digital platforms. We wanted to give a comprehensive package around data centers.

That is our aim, and we have done some good beginning right now. Still a long way to go to reach a sizable portion.

Our aim is minimum ₹1,000-plus crore next year onwards from data center type of business. That is our aim.

A few hundred crores is not sufficient for us. We are working out a unique solution.

Because data center, there are so many private players, so many other OEMs are there who are directly selling this solution. Our solution should be unique.

We are working on how to make it unique. We are working out with some startups also in this domain who are having some unique ideas in these solutions.

Especially AI-related, some unique ideas are there, which can be exploited through the data centers. We are working out various combinations with them, and hopeful to get unique solutions in this domain for BEL to sustain.

Understood, sir. Who are the target customers here?

Are these government data centers or yeah?

Yeah. Mostly government only.

State governments and central government-related activities only. We don't want to go to the general public

other

private, other OEMs, etc. We are having good leads in various state governments also.

Sure, sir. Sir, second question is on margins.

I wanted to understand if commodity cost movements around copper, aluminum, silver, etc., what kind of impact they may have on our margins in the coming quarters, if at all?

We are not anticipating much because of these metals. Because firstly, ours is a semiconductor or electronics company,

where

material of this variety doesn't impact us that much. Maybe overall in our materials, maybe 5% or so maybe are coming from so-called materials for us.

I don't see any major change for us as a company. Midhani or some other company, definitely it may affect, but not BEL.

BEL is more affected by semiconductor, and that I already explained. Semiconductor, we have come out with our own plans to mitigate the risks.

Understood, sir. Also with regards to semiconductors and overall, what kind of price variation clauses are you able to pass on any unexpected increases to end customers?

Is that possible in our business?

Yes, we are having this ERV clauses. Exchange rate variation clauses in most of our orders with our defense forces.

That indirectly covers all the semiconductors also.

Understood, sir. Sir, last question again is on margins.

I understand most of the defense orders are currently on nomination basis. My understanding was for most orders, margin profile would be similar.

Just wanted to understand how product mix impact, is it because indigenization levels are at different levels across different products, or how should one understand that?

Yes, indigenization levels also are different. Some of the products, we have IC content of around 50% to 60%.

In some of the projects, it is 80%. Some of the projects even it is touching 90% also.

Secondly, some of the projects, we are doing value addition of the order of 30% to 40%. Means we are assembling a card, assembling system, subsystem, system, and then making a system of systems.

In some of them, we are system integrator only. In the system integrator projects, our own value addition will be less, our own margins will be less.

That's why, as told by Director Finance also, our product mix is really big. It is a big AI algorithm which finally decides what should be our margins in this year based on the products which we are going to sell this year.

It is a very, very complex equation, let me tell you. It is not very easy to comprehend with 350-plus products and products of products or systems and systems of systems.

Calculating exactly what will be the final margins for me is really a tough exercise, and that we do typically every quarter only. We can't do everyday.

It is a very, very complex thing. Based on that only, we give you a indication about what will be my margins this year.

Sure, sir. Sir, and last question is, overall and on an aggregate basis, what would be the indigenization level now?

Any ballpark number that is possible to share?

Again, I told you, it is varying from 50% to almost 90% or 90%-plus. In some of the programs, it is like that.

Average, you can say 50 plus 90 divided by 2. Around 72%, 73% may be the overall indigenization level.

Sure, sir. Sir.

Thank you so much and congratulations again and wish you all the best. Thank you.

Thank you.

Hi, sir. Thank you for this opportunity and congratulations on a great set of numbers.

Sir, first, can you provide us with a breakup of your current order book? You have an order book of close to around ₹73,000 crore.

What would be the major orders in that order book?

Certainly I will tell you. As on 1st January 2026, the major order book consists of electronic fuzes because we got the order for 10 years requirement for them.

Then LRSAM, BMP-2 upgrade, Akash Army, Ashwini radar, MPR Arudra radar, and EW suite for Mi-17 V5. These seven projects will constitute around ₹20,000-plus crore.

The major projects are these. Out of that, first project only is for eight more years now.

Remaining projects like LRSAM is hardly now 1, 1.5 year more we have to execute. BMP-2, all other projects are typically for next 2 years we will execute also.

Got it, sir. Sir, and for the smaller value orders, the less than ₹1,000 crore orders that we get on a recurring basis, what is the likely execution period for those smaller orders?

Is it executed during the same year or what would be the general idea for that?

Those orders typically are 12 months to 18 months typically, sometime only 24 months, but less than 24 months definitely, these smaller orders typically are.

Got it, sir. The ₹7,000 crore or ₹7,000 to ₹8,000 crore additional order inflow, you gave us two, three names on the major acquisition that are pending.

Is there a chance to surpass on the ₹27,000 with the help of emergency procurement and the smaller value orders? Or I think ₹27,000 crore is on the upper end side of our guidance?

No, no, no. That much again I can assure you, ₹27,000 we are going to cross.

How much more, that depends upon the last-minute surprises and the Q4 whether we will get some more bigger order out of this in Q4 or they may spill over to H1. That is the only suspense for us.

We are confident based on large orders movement as well as so many more small orders are in pipeline for us. We are going to cross ₹27,000 crore, that much I can confidently tell you.

How much more, today I can't tell you. If at all we don't cross too much, it will be in the H1, that much will be there.

Because a good progress is already done on these major leads for us.

Got it, sir. Okay.

I'll get back on the queue. Thank you so much for answering my question, and all the best.

Yeah. Okay.

Yeah. Thanks a lot, and congrats on yet again very strong set of numbers.

My question is on your bid for AMCA project in consortium with L&T. Where we are in that process as of now?

When can we expect some kind of definite movement and selection of the partner who will make prototypes for AMCA?

As you may be knowing and I think the last time we told, I believe, that we have partnered with L&T for that, and L&T is the lead bidder. Right now, it was only the EOI response.

EOI response we had submitted. All the EOI responses are evaluated by a high-power committee in MOD.

We are confident that we will be one of the selected bidder, and soon we will get RFP. Hopefully, my estimate is around mid of February, we may get the RFP.

Then they may give us some reasonable time to respond to the RFP. As of now, I am confident based on the strength of BEL and L&T that we will be the strongest bidder in that particular RFP.

That much only I can tell you. Exact English or RFP also I don't know, what it will come in RFP.

Based on the strengths of BEL and L&T, we are confident that we will be the strongest bidder for this program and we will get this program.

Sir, my second question is on prospects for large orders. QRSAM and NGC order, we know.

Except for these two, what are some of the larger orders that we can expect over next 2, 3 years?

There are multiple such programs definitely are there for us for next 2 to 3 years. The one of the largest program where we are working right now with good investment is that Kusha program, which is the indigenous S-400.

There we are working and we will expect something like QRSAM type of order only when that project fructifies. It may take almost 3 years roughly to get that order.

Maybe around '28, '29 or so, we may get that big order. In addition, there are some ₹3,000 or ₹4,000-plus crore some 8 to 10 big programs which we are expecting next year and next to next year.

There is a long list of those programs, and we are confident we may get a sizable portion of those programs in next and next to next year. We have our own plans of total type of leads for these programs to maintain this growth of 15%-plus.

Good progress is there on all those programs. Many of the programs, the R&D phase is already over.

Now it is in the paper evaluation and processing-related things only are going on. We are having very good confidence to get them in next one or one to two years.

Great, sir. Thank you.

Thanks a lot.

Good evening and thanks for the opportunity. Two questions.

The first one is again on other expenses for the 9-month FY26 and 9-month FY25 period. Would you please quantify what is the extent of non-linear provisions in the other expenses?

That's my first question.

Other expenses for the 9 months has increased from 1,158 to 1,280, okay? In that, major reason is provision towards doubtful debts, which is around ₹110 crore is the increase.

It is 709 current year as against 598 last year. So ₹100 crore is the provisions increase on account of other expenses have increased by ₹100 crore because of this provisions.

Major is that only.

Okay. That is for provision for doubtful debt is and the

total

provision What is the total provision?

Total provision is 709 for the 9 months ended December.

Okay. Okay.

Actually then the other expenses have gone up even lesser than the 10.5% that

Mainly due to the provisions only. Whatever increase we are seeing is on account of provisions.

It was 1,158 last year, 1,280 current year,

and

₹110 crore is on account of provisions. It's all almost same.

Massive operating leverage which is playing out,

yeah.

That's quite good. The second one is on other income.

The other income for the 9-month is down about 15%. How's your cash position and what element of treasury yield decline is there, or so what is explaining the

other income decline? See, interest income is slightly less as compared to last year.

Interest income has decreased from around ₹472 crore to ₹416 crore. As generally, there has been a decrease in interest rates also.

Average yield has also decreased on the deposits. That is one major on account of that.

That is why the other income has slightly decreased. In addition to that, last year there was some FE gain, which is not there now because the rupee has depreciated current year.

Got it. What is your cash and bank balance as of 9-month FY26 end?

Cash portion is reasonably good at ₹7,000-plus crore.

Okay. Thank you so much, sir.

Right.

Hi, sir. Good evening and thank you for the opportunity.

Sir, just wanted to understand our R&D CapEx which we are doing this year, and giving we are participating in so many programs, how should we look at our R&D expenditure going forward as well, because obviously this should go up. If you could give us some insight into it.

R&D expenditure total. R&D expenditure has two components.

One is revenue and one is CapEx requirement of the R&D community, means the test instrument and other infrastructure. Put together itself, we call it as a total R&D expenditure for us.

That last year it was ₹1,468 crore or so. This year, our target is crossing ₹1,700-plus crore.

Next year, it will be more than ₹2,000 crore. Overall, now we wanted to have almost 20%-plus increase year-on-year on our R&D expenses, because we know the overall requirement of indigenization is increasing, overall requirement of new technology development is increasing.

We are also diversifying into new and new areas, and these new areas require more R&D resources. We are keeping on increasing our R&D budget as well as our R&D manpower also.

Today, we are having more than 3,200-plus R&D engineers. In last 1 year itself, we have added almost 700 to 1,000 R&D engineers in our R&D manpower.

We will continuously increase further for diverse R&D areas where we are working. Overall, we know you also may be knowing that BEL is a R&D-focused company with three-tier R&D.

Definitely, we are going to increase our expenditure, or technically it is an investment, not expenditure. R&D investments, we are going to increase in a very, very sizable way.

Minimum 20% year-on-year growth investment we have committed now. It will be more than 20 only, I can assure you.

Noted, sir. Sir, just one question, just a repeat of a previous participant.

In terms of AMCA, I know we are usually three people who are there. In case of whatever the order comes, what percentage would be supplied by us?

Let's say what is the percentage that's probably would have already been settled between you three people who are bidding for the AMCA, right?

The thing is let me tell you AMCA, right now there are multiple consortiums. Five or six six or seven consortiums have participated in EOI.

Hopefully, in RFP maybe issued to three or four only, because they cannot evaluate too many fellows. I'm guessing that.

After RFP, then there will be a L1 discovery, technical evaluation and then L1 discovery. We are confident of qualifying technical, and we are confident that we will be L1.

Once we are L1, between BEL and L&T, we have arrived at some workshare arrangement between both of us. L&T has back-end arrangement with the third partner.

That his portion, some of the execution will be done by the third partner. Our portion, as of now, we are free to work with that third partner or not.

Right now, the commitment is between L&T and the third partner, not directly between us and third partner. Seeing the project progress, seeing the strength at that point of time, we may share some of our workshare also to our third partner.

I hope I have answered your question.

Yes, sir. Just wanted to know the currently workshare percentage is divided, without the third partner is divided what percentage yours?

It is more or less 50-50. Because we told 50-50 is the overall investments, 50-50 will be the more or less workshare between both the lead bidders.

L&T and BEL, it is more or less 50-50. Because investments and everything has to go together only.

You can't have investment more and then workshare less. Right now, everything is 50-50.

Noted, sir. That's all from my side.

Thank you and all the best.

Sir, good evening, sir. Congrat for good set of results.

Sir, in overall scheme of things in larger program, post FY27, what is the visibility? Means what kind of a pipeline we are working so that we'll be able to maintain ₹25,000, ₹30,000 crore kind of an inflows over next 3 to 5 years?

These all projects, I can't tell you today because some of the projects are multi-vendor also. Many projects are definitely nomination basis because of our continuous efforts which we have done over last 5-plus years to develop the critical technology modules for those programs.

We are confident overall. There is a big list of projects for us.

In that list of almost 30-plus items are there, which are minimum ₹1,000-plus crore business for us in next few years. That is a big list, and we have done reasonably good R&D already for them.

As I told, Kusha is one such program where we have done very good investment further, and we are hoping it will be another QRSAM for us. These type of a two, three big programs definitely will take care of a big order book at the end of the year.

Then this smaller ₹1,000, ₹2,000, ₹3,000, ₹4,000 crore worth of orders definitely will take care of our overall growth of more than 15%.

Sir, whenever a new orders like QRSAM, Kusha program starts executing, is it fair to assume that our margins will have some dilution because there the indigenization component will be at the lowest level and over a period of time you ramp up in the indigenization?

No, no, no. Let me tell you, these programs are 100% indigenous.

The QRSAM or Kusha programs are 100% indigenous except the ICs and other things, semiconductors. Overall indigenization level in this program is good.

However, because this program we will play slightly higher end role, the system integrator role, the profit actually will be shared by large industry partners, MSME partners also. We may have slightly lesser margins in these projects.

Overall projects will be very good profitable for company and for our MSME and other partners. Definitely, that's why we told we have a logical mix.

Some projects, we are working as a system integrator. Some projects, we are working from ground up, like at component level or subsystem level also.

Our value addition varies from, I told you, around 40%, 45% to something like 10% to 15% depending upon the type of program. Because of that, our EBITDA margins, etc., that's why I told it is a complex equation, and that's why average only we told last year that's 27%, and this year also we are sticking on to 27%.

Next year April, we will come back to you with our guidance for next year based on that year product mix and what type of products are there and what type of value addition in each product which we are anticipating in those programs. Based on that, we will decide.

Let me tell you, in these programs of QRSAM, Kusha, etc., because they are 100% indigenous, definitely it will be much more cost-effective for us as well as for our users.

Got it. Got it.

Thanks, sir. Thanks.

Hi. Am I audible?

Yeah.

Yeah. Congratulations for a great set of numbers, sir.

Just two questions from my side. What would be the Uttam radar update for 97 numbers and when would we be expect the order?

Uttam radar right now as a radar is handled by HAL, and only subsystem level, the TRU level only, we are one of the vendor. Decision about how many of Uttam radars will go or not, whether in this 97 full 97 will be Uttam radar only, that decision is being taken by HAL in conjunction with our DRDO friends, means ADA.

ADA and HAL jointly are deciding how many of these 97 numbers order will be supplied with Uttam, how many will be with foreign radar or mix of these two. We are not a party to that.

Once HAL finalizes the configuration, at that time only they will ask for a bid for this TRU, which is the most complicated subsystem or most costly subsystem of this. Then only we will come to know and we will quantify.

As on today, we have not added that in our kitty of this immediate market leads, because we are not sure about configuration finalization by HAL still. The day they finalize and then they issue RFP, after that only we can plan.

Sure, sure, sure. One last question.

On 52 military satellite order, what would be BEL's scope in that?

As of now, military satellite, we are not in business. We are in the prototyping or coming out with some unique solution.

We are tying up with some of the startups and some of the even foreign OEMs also we had tied up. We are coming out with a unique proposition for this military satellites, and then only we wanted to bid.

Right now, it is a bit early to tell how much of this share we will get. We have done reasonably good progress in coming out with a unique solution for this jointly with our startup and other industry partners.

Once we offer that solution to our military friends, then only we can quantify how much of this share can come to us. Today, it is a bit early to commit.

Sure, sir. Sure, sir.

Thank you. Thank you.

Thank you, sir.

Madam, it is already 5 5:05.

We'll take maximum one last question, madam.

Yes.

Yeah.

Good evening, sir. Thank you so much for the opportunity.

Sir, indigenization is slower still airborne systems. What specific components are still imported, and what is the road map for substitutions?

How we are leveraging DRDO partnership to accelerate indigenous development in sensors, radars, and EW systems? Thank you.

Yeah. DRDO is continuously developing sensors, EW systems, etc.

As you have told already that airborne system, there is a challenge of testing, certification, etc., it takes its own time. If some of the subsystems are already proven in some foreign platforms, then we are tempted to use them also till our own indigenous systems are matured.

I can tell you more than 70% to 80% of airborne sensors are now of indigenous origin. Definitely a few are still of foreign origin because they are already tested somewhere in some other platforms.

Those particular systems which are already inducted there, which we are also taking, there we are going at module level indigenization. That activity is going on.

Definitely all airborne subsystems we wanted finally to be only indigenous. We are maybe around 70% or more already indigenized, but there is still some gap which we are bridging either by efforts of our own, ours plus DRDO, ours plus DRDO plus other industry partners.

There is a slightly more complicated, slightly more complex problem in airborne segment, and we are trying to attack it jointly, and various programs are going on at BEL, at DRDO, and at our industry partners also.

Got it, sir. Thank you.

Thank you all. As you have seen, till Q3, we have gone reasonably good, and I hope we have met the expectation of you all.

As we started the year, we want to see that year-end will be with the figures which we had committed to you, means revenue growth more than 15%, EBITDA margin definitely more than 27%, order inflow ₹27,000 crore-plus, R&D investment although we told ₹1,600 crore, but I am confident we may cross ₹1,700, but at least ₹1,600-plus definitely we are going to be there, CapEx ₹1,000 crore, and defense, non-defense business of 90 to 10. These are our guidance as future, and we are hopeful to exceed that only.

That is a brief summary of from my side.

Thank you. Thank you all.