BEL Q1 Results: Should you buy, hold or sell after mixed results

Shares of Bharat Electronics Ltd (NSE: BEL) declined in early trade on Monday despite posting a strong year-on-year rise in profit for the quarter ended June 2025 (Q1FY26). The fall comes amid a revenue miss and a downgrade from Nomura, even as most brokerages remain positive on the company's margin strength and robust order inflows.

The BEL share price was trading at Rs 386.15, down 0.80 per cent on the NSE as of 9:41 AM IST.

BEL Q1FY26 Results: Key Highlights

Net profit rose 23 per cent year-on-year to Rs 969.91 crore, up from Rs 791 crore in Q1FY25

Revenue increased 4.6 per cent year-on-year to Rs 4,439.74 crore

Sequentially, profit declined 54 per cent, while revenue dropped 51 per cent from Q4FY25

EBITDA margin stood at 28.1 per cent, supported by a 780 basis points year-on-year rise in gross margins

New orders came in at Rs 7,400 crore, marking a 48 per cent year-on-year growth

BEL Share Price: What Brokerages Are Saying

Nomura downgraded BEL to Neutral from Buy, while raising the target price to Rs 400 from Rs 363, citing limited near-term upside despite strong fundamentals.

UBS maintained a Buy rating with a target price of Rs 450, highlighting the margin-driven beat in Q1 and healthy gross margins.

JP Morgan retained its Overweight stance, raising its target price to Rs 490, noting strong order momentum and execution.

Morgan Stanley also maintained an Overweight rating with a target of Rs 418, stating that order wins are well ahead of the pace required to meet FY26 guidance.

On July 25, BEL received a major order worth Rs 1,640 crore from the Ministry of Defence to supply Air Defence Fire Control Radars to the Indian Army. Analysts believe this, along with the Q1 inflows, strengthens the company’s visibility for meeting its FY26 guidance of Rs 27,000 crore in order inflows and 20 per cent revenue growth.