BEL shares jump over 5%, scaling record high levels; five reasons why stock has been on rising spree

The stock hit a record high of ₹383.75 on the BSE in the intraday deals today. This translates to a rise of 5.51% from the previous close.

Shares settled at ₹382.70 apiece on the BSE, up 5.22%.

In comparison, the benchmark S&P BSE SENSEX has gained 0.33% in a week, 1.05% in the past two weeks, and 2.76% in the past month.

Meanwhile, the BSE Industrials index has gained 3.71% in the past week, 11.48% in the past two weeks, and 10.52% in the past 30 days.

Renewed buying in defence stocks post Operation Sindoor

The defence pack overall has been investors' favourite ever since the border tensions between India and Pakistan surfaced this month following a ghastly terror attack in Pahalgam, Kashmir, on April 22.

Shares of defence equipment manufacturers, including warship, aircraft, and drone builders, have seen their shares rally by up to 40% in a week. Hence, BEL shares have also seen an incessant rise during the past few sessions.

Additionally, BEL’s Akashteer air defence system played a crucial role in Operation Sindoor, neutralising drone threats and demonstrating India’s prowess in electronic warfare and airspace defence.

As of April 1, 2025, its order book stands at around ₹71,650 crore, underlining the confidence placed in BEL’s diversified portfolio – from radar systems to advanced communication solutions.

Boost to Defence Budget

According to news reports, India's defence Budget may get a ₹50,000 crore boost following Operation Sindoor. The boost, which will likely be provided through the supplementary budget, will take the overall defence allocation past ₹7 lakh crore, reports add.

The increased budget – approval for which will be sought in Parliament's Winter Session – will likely be used for research and development and the purchase of weapons, ammunition, and other necessary equipment, said a report by NDTV.

Emphasis on Make in India military gear and equipment

Following Operation Sindoor, Prime Minister Narendra Modi, in his address to the nation, emphasised the effectiveness of indigenously produced military equipment during the military fight.

Besides, Maharashtra Chief Minister Devendra Fadnavis on Sunday, May 18, said India has the best defence capabilities, and the country's military dominance is a result of the self-reliant defence production models launched in 2014.

"India ranks among the top five armed forces globally. The world has accepted that we have the best defence capabilities. Our defence capacity is five times greater than Pakistan's," he said.

The chief minister said every Indian stands firmly behind the armed forces jawans and Prime Minister Narendra Modi.

BEL Q4 Results: A good show

Bharat Electronics reported a net profit of ₹2,127 crore for the fourth quarter of the financial year 2024-25 (Q4 FY25), marking an increase of 18% from ₹1,797 crore logged during the same period last year.

Its revenue from operations rose 7% to ₹9,150 crore as against ₹8,564 crore seen in the year-ago period.

The Bengaluru-based company posted a strong operational performance in Q4 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), rose 23% to ₹2,816 crore and its EBITDA margin improved by 410 basis points to 30.8% from 26.71%.

Profit after tax (PAT) during FY 2024-25 stood at ₹5,288.25 crore, with a growth of 31.55% over the PAT of ₹4,020 crore recorded during the previous year.

The Navratna Defence PSU achieved a turnover of ₹23,024.10 crore, registering a growth of 16.17% during FY2024-25 over the turnover of ₹19,819.93 crore recorded during the previous year.

During Q4, BEL achieved a turnover of ₹8850.42 crore as against ₹8335.01 crore recorded in the corresponding period of the previous year.

The company’s board has also recommended a dividend of 90 paise per share.

Defence exports to surge

India’s defence exports have witnessed a remarkable surge, growing from ₹686 crore in 2013-14 to ₹23,622 crore in 2024-25, marking a 34-fold increase. And, according to news reports, the figure will likely touch ₹30,000 crore in FY26.

Policy measures such as including simplification of the industrial licensing procedure and removal of parts and components from the licence regime, along with easing rules for exports of equipment, have contributed to India transforming from a net importer of defence equipment to an exporter, reports add.