BEML - BEML Ltd

📊 NSE: BEML 🏢 Engineering 📅 Last Updated: 12/13/2025 19:17

💰 Financial Performance

Revenue Growth by Segment

Mining & Construction (M&C) revenue contribution increased from 42% in FY24 to 54% in FY25. Defence & Aerospace (D&A) grew from 19% in FY24 to 27% in FY25. Rail & Metro (R&M) saw a significant decline from 39% in FY24 to 19% in FY25. For H1 FY26, D&A is projected at 40% and M&C at 43% of revenue.

Geographic Revenue Split

The company exports to over 72 countries, though the majority of revenue is domestic. Specific percentage split between domestic and international revenue is not disclosed in available documents.

Profitability Margins

Operating margins have shown a steady upward trend, rising from 4.13% in FY21 to 10.22% in FY24 and reaching 10.60% in FY25. PAT for FY24 was INR 281.77 Cr, a 78.4% increase from INR 157.89 Cr in FY23.

EBITDA Margin

PBILDT margin was 10.60% in FY25, up from 10.47% in FY24 and 8.36% in FY23. This represents a 214 bps improvement over two years, driven by a shift toward higher-margin Mining & Construction products.

Capital Expenditure

BEML has planned a capital expenditure of approximately INR 900 Cr over the next two years (FY26-FY27), to be funded entirely through internal accruals.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE AA-; Stable (upgraded from CARE A+ in August 2024). Short-term facilities are rated CARE A1+. Interest coverage ratio improved to 6.61x in FY25 from 5.97x in FY23.

⚙️ Operational Drivers

Raw Materials

Raw materials and components (including steel and specialized electronics for metro/defence) account for approximately 53% of the total cost of sales as of FY25.

Import Sources

The company imports raw materials for various products to meet specialized technical requirements; however, specific countries of origin are not disclosed in available documents.

Key Suppliers

Not specifically named in the documents, though the company is transitioning to a 'system integrator' model by outsourcing manufacturing to Indian private sector vendors.

Capacity Expansion

Current capacity is not disclosed in units; however, the company is investing INR 900 Cr to enhance capacity and is utilizing outsourcing to complement its industrial base without making capital investments where private facilities already exist.

Raw Material Costs

Raw material costs stood at 53% of revenue in FY25, consistent with 53% in FY24 and down slightly from 55% in FY23. Procurement is managed through a transparent process with a focus on indigenization.

Manufacturing Efficiency

Efficiency is driven by in-house R&D, which accounts for 75% of the company's business. PBILDT margins improved from 3% in FY22 to 10.6% in FY25 due to better product mix and operational efficiency.

Logistics & Distribution

Distribution is handled through a nationwide network of sales offices and temporary activity centers at customer locations to ensure ready access and support.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth is targeted through a robust order book of INR 14,610 Cr (3.7x FY25 revenue). Strategy includes a shift toward high-margin M&C equipment, indigenization via 'Make in India', and expansion into zero-emission technology like hydrogen fuel-cell mobility and electric heavy vehicles (205T Electric Drive Rear Dump).

Products & Services

Metro cars, rail coaches, 205T electric drive rear dumps, mining equipment, heavy-duty defence vehicles, spare parts, and maintenance services (AMC/MARC).

Brand Portfolio

BEML (formerly Bharat Earth Movers Limited).

New Products/Services

India’s first 205T electric drive Rear Dump and Hydrogen fuel-cell mobility solutions for heavy equipment (launched June 2025).

Market Expansion

Expanding export footprint beyond the current 72 countries and increasing presence in the domestic metro rail segment (e.g., INR 3,177 Cr BMRC order).

Market Share & Ranking

BEML is a 'Schedule-A' PSU and a dominant player in the Indian mining and rail coach sectors; specific market share percentages are not disclosed.

Strategic Alliances

Collaborations for hydrogen fuel-cell mobility (June 2025) and technology transfers for indigenization of metro and defence products.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Make in India' indigenization and green mobility. BEML is positioning itself with electric and hydrogen-powered heavy machinery to align with zero-emission trends.

Competitive Landscape

75% of business is won through competitive bidding against private and international players.

Competitive Moat

Moat is based on a 60-year track record, high entry barriers in defence/metro manufacturing, and a massive order book of INR 14,610 Cr providing 3 years of revenue visibility.