BEML Ltd — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

BEML Ltd reported a robust 24% YoY revenue growth in Q3 FY26, driven by strong order execution and a current order book of INR 16,300 crores. The company is investing INR 1,500 crores in a new Bhopal plant to significantly expand rolling stock capacity and is diversifying into new areas like Tunnel Boring Machines and Maritime Cranes. Despite a dip in profitability due to an INR 80 crores one-time correction, BEML maintains an optimistic outlook with targets for 20% revenue growth and a INR 20,000 crores order book by FY26 end.

Highlights

  • Revenue from sales grew by around 24% year-on-year.

  • Total order book reached INR 16,300 crores, with a target to exceed INR 20,000 crores by FY26 end.

  • Approved INR 1,500 crores investment for a new Bhopal plant, adding 300 cars/annum capacity in Phase 1.

  • Working capital and inventory days have reduced.

  • Construction segment expected to grow at least 30% this year.

Concerns

  • Profitability (PBT, PAT, EBITDA) dipped due to an INR 80 crores correction for a metro project restart.

  • Mining segment order book is currently not strong due to postponed rains and shift to MDOs.

  • Supply chain for casting aggregates, while eased, is not yet 100% resolved.

Key financials

  1. Revenue from Sales Growth 24% +24%YoY
  2. Employee Count (Dec 2025) 4,622 employees
  3. One-time Metro Project Correction ₹80 Cr

What they filed

Q1 FY27: revenue up 29.3%, net profit up 57.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue860 876 1,653 634 839 −2%1,083 +24%1,794 +9%820 +29%
EBITDA73 60 423 -48 73 +0%4 −93%272 −36%2 +104%
Net profit51 25 288 -64 55 +8%-23 −192%179 −38%-27 +58%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹16,300 Cr

as of 2025-12-31 quantified

Execution

The first phase of the Bhopal plant will make the plant fully operational within 18 to 24 months, enhancing rolling stock capacity by at least 300 cars per annum.

Composition

Mix 3 segments
  • Rail & Metro 68%
  • Defense 25%
  • Mining & Construction 7%

Share of order book by segment

Pipeline

hard target

Expect to cross INR20,000 crores in order book in the balance period of current financial year. Additional pipeline includes 2,856 cars for MRVC, 2,500 metro rolling stock cars (4-5 years), 4,800 cars for high-speed corridors, 720 cars for RRTS Delhi hub, and over INR 3,000 crores in Defense orders.

The company has a robust order book of INR 16,300 crores, with significant future pipeline visibility across Rail & Metro, Defense, and Mining & Construction segments, targeting to exceed INR 20,000 crores by FY26 end.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹1,500 Cr entirely through debt financing
    • New Bhopal plant for rolling stock capacity expansion ₹1,500 Cr
    So for the Bhopal project, INR1,500 crores, obviously, we'll not be putting our capex. So, we'll do it through debt financing.
  • Debt Debt disclosed
    • New borrowing Long-term debt for Bhopal plant, financial closure expected in a couple of months. ₹1,500 Cr
    So for the Bhopal project, INR1,500 crores, obviously, we'll not be putting our capex. So, we'll do it through debt financing.
  • Liquidity Liquidity disclosed Working capital days have gone down, and the company aims to reduce inventory by at least 20% by FY26 end.
    The inventory in terms of number of days of the VOP has gone down. The working capital also in terms of the number of days has gone down.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 20%
    we should look at anything between 15% to 20%. 20% is what we are aiming for.

    — Shantanu Roy

Order Book

  • Total Order Book Order Book · FY26 · High confidence INR 20,000 crores
    In the balance period of the current financial year, we expect that we will cross INR20,000 crores in order book.

    — Shantanu Roy

Working Capital

  • Inventory Reduction Working Capital · FY26 · High confidence 20%
    Our endeavor is to reduce the inventory by at least 20%.

    — Shantanu Roy

Capacity

  • Rolling Stock Capacity Addition (Phase 1) Capacity · 18-24 months · High confidence 300 cars per annum
    The first phase itself will make the plant fully operational, and we will be able to enhance our current capacity of rolling stock by at least 300 cars per annum.

    — Shantanu Roy

Construction Segment

  • Revenue Growth Construction Segment · FY26 · High confidence at least 30%
    Construction, we already have the orders and we'll be delivering this year itself and construction will see a growth of at least 30% this year as compared to last year.

    — Shantanu Roy

New Product Revenue

  • Maritime Cranes Annual Revenue Potential New Product Revenue · 5 years from now · Medium confidence INR 5,000 crores
    at least INR5,000 crore per annum can be the revenue once it reaches its complete potential.

    — Shantanu Roy

What to watch in Q4 FY26

Financial closure for Bhopal plant debt financing

Next quarter (Q4 FY26)
Current Expected in a couple of months
Target Financial closure completed

Why it matters

Crucial for funding the INR 1,500 crores rolling stock capacity expansion.

And the first phase debt financing, it should happen maybe the financial closure another couple of months from now.

Risks & concerns

  • Profitability dip due to one-time project correction

    medium

    An INR 80 crores provision for a metro project restart impacted Q3 profits, but management expects future positive impact from exchange rates.

    Management acknowledged

  • Supply chain constraints for critical components (casting)

    medium

    Casting supply chain eased to 60-70%, but not 100%, with some samples still under testing, impacting production efficiency.

    Analyst acknowledged

  • Dependence on government orders and shift to MDO model in Mining

    medium

    Shift from departmental purchase to MDOs and postponed rains affected mining order book, but BEML is actively engaging with MDOs and expects a healthy order book in Q1 FY27.

    Management acknowledged

Q&A highlights

5 direct
Impact of INR 80 crores correction on Q3 profitability Direct
As I mentioned at the beginning itself, that this quarter, in the quarter 3, the profitability has gone down mainly because of one factor, wherein we brought in a correction for one metro project where we had to restart the project. The project was in a limbo and that's the reason we had to provide for INR80 crores, around INR80 crores.

Explains the primary reason for the reported dip in profitability despite revenue growth, clarifying it as a one-time project-specific adjustment.

Asked by Ankit D

Execution plan for the 1,400 cars rolling stock backlog given current capacity Direct
So, for that, we had a plan B. And that is why we started creating one more facility in September 2024, which is called Aditya, and which is ready. So very shortly you will see the coaches coming out from that facility. That facility has been built specifically for the high-speed train project, but it is not only the high-speed, it is again a very versatile facility that we have built, and we'll be manufacturing the LHB coaches, even the Vande Bharat Sleeper, the track machines at this facility.

Reveals the company's strategy to address the large order backlog through new and existing facilities (Aditya, KGF RC2) to ensure timely execution.

Asked by Ankit D

Funding strategy for the INR 1,500 crores Bhopal plant investment Direct
So for the Bhopal project, INR1,500 crores, obviously, we'll not be putting our capex. So, we'll do it through debt financing. And as I mentioned, we'll do it in phases. And the first phase debt financing, it should happen maybe the financial closure another couple of months from now.

Clarifies that the significant capex will be funded via long-term debt, indicating a strategic financial decision to leverage debt over equity for this expansion.

Asked by Prathamesh

Status of supply chain constraints, particularly for casting Partial
Yes, they have eased to a certain extent. I won't say it is 100% eased. Still some of the casting manufacturers, their samples are under testing. Once they clear the testing, then only and we will give them clearance for bulk production. And then only I can say that it has eased out to 100%. Right now, I will say casting, the steel cast at least 60% to 70%, it has eased out.

Provides an update on a critical operational challenge, indicating partial resolution but ongoing efforts, which impacts production efficiency and delivery timelines.

Asked by Prathamesh

Pipeline and immediate order prospects in the Defense segment Direct
in Defense we have an order pipeline of high-mobility vehicles for at least, you know, 1,000 crores. Then as far as the strategic systems are concerned, the engineered equipment, there is the requirement that is coming out, it will be around 1,000 to 1,500 crores. Then there is a requirement for combat engineering bridging systems; it will be again in the range of -- it will be around 45 to 47 bridging systems that will be needed. So it should be again more than 1,000 crores.

Details the substantial and diverse order pipeline in the Defense sector, highlighting key upcoming opportunities and BEML's competitive position.

Asked by Amit Anwani

Reasons for weak order book in the Mining segment and future outlook Direct
As far as mining is concerned, because of the rains getting postponed, mining ordering also has been patchy. That is number one. Number two, the shift from departmental purchase to MDO... And we have non-Coal India companies also like the Singareni Collieries from which we expected at least, you know, some 700 crores, 800 crores of order in the current financial year which will now go into the next financial year, the first quarter.

Explains the current weakness in the mining order book due to external factors and strategic shifts, while providing a positive outlook for a healthy order book in Q1 FY27.

Asked by Amit Anwani

3 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview and Profitability Impact

BEML Ltd reported a strong operational quarter with revenue from sales growing approximately 24% year-on-year. This growth was accompanied by a commensurate increase in the value of production and a reduction in employee remuneration. The company also saw improvements in working capital and inventory days, alongside a decrease in total employees from 4,798 in December 2024 to 4,622 in December 2025. However, profitability metrics including PBT, PAT, and EBITDA dipped due to a one-time INR 80 crores correction related to a metro project restart.

Robust Order Book and Future Pipeline

The company's current order book stands at INR 16,300 crores as of Q3 FY26, with a composition of 68% from Rail & Metro, 25% from Defense, and 7% from Mining & Construction. Management expects to cross INR 20,000 crores in order book by the end of FY26. Significant pipeline visibility includes 2,856 cars for the Mumbai MRVC project, 2,500 metro rolling stock cars over the next 4-5 years, and 4,800 cars for high-speed corridors. The Defense segment also has a pipeline of over INR 3,000 crores across high-mobility vehicles, strategic systems, and bridging systems.

Strategic Capacity Expansion for Rolling Stock

BEML has approved an investment of INR 1,500 crores for a new Bhopal plant dedicated to rolling stock manufacturing. This investment will be executed in two phases, with Phase 1 costing INR 900 crores and Phase 2 costing INR 600 crores, including GST. Phase 1 is expected to be operational within 18 to 24 months and will enhance the company's rolling stock capacity by at least 300 cars per annum. The facility will be fully automated, capable of producing various gauges of rolling stock, and will be funded through long-term debt, with financial closure anticipated in the next couple of months.

Diversification into New Products and Markets

BEML is actively diversifying its product portfolio into high-growth areas. A key initiative is the development of Tunnel Boring Machines (TBMs), starting with a 6.5-meter diameter model for metro projects, with a pilot project to build four TBMs. While development will take around 2.5 years, the Indian market for TBMs is estimated at $5 billion over the next decade. The company is also venturing into maritime cranes for port operations and shipbuilding, projecting an annual revenue potential of INR 5,000 crores within five years, requiring a greenfield facility of 100-150 acres. Additionally, BEML is exploring underground mining equipment through a partnership with Tesmec Italy.

Supply Chain Management and Operational Efficiency

Management provided updates on critical supply chain aggregates. The supply of casting, a key component, has eased to 60-70%, with efforts underway to reach 100% resolution. Similarly, the supply of cabins for High Mobility Vehicles (HMV) has eased to 80-90%. BEML is developing in-house capabilities for critical components like the Train Control Management System (TCMS) and fostering a domestic ecosystem for other aggregates like interior panels and seats, with multiple partners already developed for Vande Bharat Sleeper coaches. The company aims to reduce inventory by at least 20% by FY26 end to further improve working capital efficiency.

Segmental Outlook: Mining and Construction

The Mining segment's order book was noted as not strong in Q3 FY26, attributed to postponed rains and a strategic shift from departmental purchases to the MDO (Mine Developer and Operator) model. BEML is actively engaging with MDOs and expects a healthy order book for mining equipment in Q1 FY27, including INR 700-800 crores from Singareni Collieries shifted to the next financial year. Export orders from GCC and Middle East are also anticipated. The Construction segment, however, is performing well with existing orders and is projected to achieve at least 30% growth this year compared to last year.

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