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Company Profile

BEL is a public sector undertaking (PSU) under the Indian government’s Ministry of Defence. Because of its Navaratna status, it has more financial and operational independence. The Indian government owns 51.14% of the shares. Bangalore, is the corporate headquarters. Bangalore, Chennai, Ghaziabad, Pune, Hyderabad, Panchkula, Machilipatnam, Navi Mumbai, and Kotdwara are just a few of the cities with manufacturing and research and development facilities of the company. Established in the year 1954; began operations with simple communication devices and gradually developed into defense electronics, semiconductors, and radars. They established locations throughout India and developed internal R&D skills throughout the years.

Aerospace & Defence Industry in India

• The Indian military is of the world’s most powerful and is strategically important for the country. The most important market segments for the Indian defense industry are military wings, naval ships, ground fighter jets, rockets and rocket defense systems. Electronic warfare, artillery, u-boats, military rotorcraft, tactical communication, military soil vehicles are some of the other important related equipments. Some of the best defense companies in India are Bharat Earth Movers Ltd. (BEML), Hindustan Aeronautics Ltd. (HAL) and others.

• The defense industry is an important part of the Indian economy. The company will likely accelerate as national security concerns grow. The need for defensive weapons in India is on the rise as territorial disputes continue between India and Pakistan, for the state of Kashmir. For the past five years, India has been one of the largest importers of defense equipment to achieve technical advantages over countries such as China and Pakistan. For 2025 - 2026, the Ministry of Defense (MOD) received a budget of Rs. 6.81 lakh crore or USD 78.7 billion (app). This is a 9.5% increase compared to the 2024 - 2025 budget. The allocation is 1.89% of India’s GDP.

• According to the Global Power Index, India’s defense sector is one of the most powerful and promising. Defense exports are expected to exceed Rs. 21,000 crore (USD 2.43 billion) during CY24 to Rs. 50,000 crore (USD 5.8 billion) by 2029. India plans to sell military equipment worth USD 5 billion (approximately Rs.35,000 crore) over the next five years. India is now among the top 25 Global Arms Exporter.

•   By means of “Innovations for Defence Excellence (iDEX),” the Indian government is focusing on innovative approaches to bolster the country’s security and defense. Startups now have a platform to work with defense facilities and develop new products and tech-nologies. 

•  The Defense Minis-try’s goal of being 70% self-sufficient  with weapons by 2027 presents a plethora of options for industrial players. The Green Channel Status Policy (GCS) was created to promote private sector investments in defense production and to expand the private sector’s role in defense manufacturing.

In order to realize India’s vision of an “Atmanirbhar Bharat,” the government is prioritizing the removal of obstacles for foreign investment in the sector.

Company Perspective and Review

Over the course of FY21–FY25, Bharat Electronics Ltd. (BEL) demonstrated a strong and stable financial position, as evidenced by a steady increase in total assets from Rs. 29,053 Cr to Rs. 40,418 Cr and a notable rise in shareholders’ funds driven by steadily increasing reserves. With revenue increasing from FY21 to FY25 and PAT more than doubling to Rs. 5,288 Cr, BEL’s P&L demonstrates outstanding growth and profitability momentum. While material and personnel costs stayed under control, costs increased at a slower rate than income, leading to a notable expansion of the margin. Profitability was further increased by substantial cash reserves and low financing expenses. The company is debt-free, supported by a high cash balance, which enhances ongoing capacity. While working-capital intensity is high, BEL’s solid cash generation, strong order book visibility, and zero-debt structure highlight its excellent solvency, operational strength, and long-term financial resilience. The company has paid dividend all these years.