BEML Limited is strategically focusing on the Rail & Metro and Defense sectors as key growth drivers. With a current order book of approximately ₹16,300 crores, 65% is from Rail & Metro and 30% from Defense. The company anticipates a 20% growth in FY26, driven by strong performance in these sectors and expects significant revenue contributions from upcoming metro projects and defense contracts.
Strategic Focus and Order Book
BEML Limited is prioritizing the Rail & Metro and Defense & Aerospace verticals for growth. The current order book stands at roughly ₹16,300 crores, with 65% attributed to Rail & Metro, 30% to Defense, and around 5% to Mining. The company anticipates concluding the year with an order book exceeding ₹20,000 crores, primarily fueled by Rail & Metro projects.
Mining Sector Developments
While the mining sector constitutes a smaller portion of the order book, BEML is adapting to changes in Coal India’s acquisition models, transitioning from departmental purchases to MDO (Mine Developer and Operator) models. The company is also exploring partnerships for underground mechanized mining.
Rail & Metro Outlook
BEML expects significant revenue contributions from Rail & Metro projects, particularly from the Bangalore, Chennai, and Mumbai metro projects. Bulk production for the Bangalore metro is underway, with plans to supply 8 to 10 trains in the current financial year. Chennai Metro is expected to enter the proto-rollout stage in FY26-27. Mumbai Metro will contribute revenue from FY26-27 onwards.
Defense Sector Growth
The defense sector is poised for substantial growth, with bulk production of mechanical minefield marking equipment, self-propelled mine barriers, and command post vehicles expected to commence. BEML anticipates a 70% to 80% growth in defense revenue this year, building on last year’s doubling of revenue. Key to this is the company’s shift towards providing complete systems rather than only high-mobility vehicle platforms.
Maritime Crane Opportunities
BEML is venturing into the maritime crane market, targeting shipbuilding and port operation cranes. The company estimates a potential revenue of ₹4,000 to ₹5,000 crores from this segment, contingent on securing a significant share of the market. This initiative aligns with BEML’s competencies in sheet metal, fabrication, and hydraulics.
Financial Guidance and Expectations
BEML is targeting a 20% growth in FY26. The company anticipates an uptick in performance in the third quarter (Oct-Dec) and a strong fourth quarter (Jan-Mar), driven by mining sector activities. Defense has performed well, and is expected to continue to contribute positively.
Source: BSE
