BEML
Small CapBEML Limited
Industrials
BEML Limited is an Indian manufacturer of heavy equipment for defense, rail & metro, and mining & construction sectors. The company focuses on indigenous design, development, and manufacturing, serving critical infrastructure and strategic needs.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -38% YoY · margin compression · Rev +9% YoY · +66% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,794 Cr | +8.5% | +65.7% |
| EBITDA | ₹272 Cr | -35.5% | +6700.0% |
| Operating margin | 15.0% | -1100 bps | +1500 bps |
| PAT | ₹180 Cr | -37.5% | NDF |
| PAT margin | 10.0% | -739 bps | +1206 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q3 FY26 revenue grew 24% YoY, but PBT, PAT, and EBITDA dipped significantly due to an INR80 crore provision for a stalled metro project. Order book remains robust at INR16,300 crores, with management expecting to cross INR20,000 crores by FY26 end.
While BEML boasts a strong order book and ambitious growth plans, including significant capacity expansion and new product diversification, the material profitability hit in Q3 FY26 due to a project correction raises concerns about execution and risk management. Management's Q4 revenue growth target appears speculative.
Order Book by Segment
Latest issuer-disclosed distribution across 3 reported categories.
Rolling Stock Expansion
New Bhopal plant to enhance current capacity by at least 300 cars per annum (Phase 1), targeting 800 cars/annum eventually, catering to metro, high-speed, RRTS, and LHB coaches.
Tunnel Boring Machines (TBMs)
Starting with 6.5-meter diameter TBMs for metro projects; India's 10-year requirement is around $5 billion. Expects to start pilot project for 4 TBMs.
Maritime Cranes
Diversifying into ship-to-shore, rubber gantry, rail-mounted gantry, and Goliath cranes for port operations and shipbuilding, with a potential revenue of INR5,000 crore per annum.
Defense Strategic Systems
Pipeline includes high-mobility vehicles (INR1,000 cr), strategic systems (INR1,000-1,500 cr), combat engineering bridging systems (45-47 systems, >INR1,000 cr), ARVs, and gun towing vehicles.
Bhopal Rolling Stock Plant
Approved INR1,500 crores investment (INR900 cr Phase 1, INR600 cr Phase 2) for a greenfield plant. Phase 1 to be completed in 18-24 months, adding 300 cars/annum capacity.
Aditya Facility
Started in September 2024 and is ready. Built for high-speed train projects, LHB coaches, Vande Bharat Sleeper, and track machines.
KGF Rail Coach II (RC2) Facility
Small facility in KGF with railway tracks, shifting some LHB coach load to this facility to manage immediate requirements.
Government Infrastructure Push
High demand for Tunnel Boring Machines for metro, high-speed, and road projects. Maritime vision 2030, Sagarmala program, and Viksit Bharat 2047 envisage 12 mega ports and 200 minor ports.
Indian Railways Modernization
Pipeline includes MRVC project (2,856 cars), 7 high-speed corridors (est. 4,800 cars), RRTS projects (est. 720 cars from Delhi hub), and LHB coaches (600 currently, two more tranches expected).
Defense Indigenization
Company is developing products like the Light Armored Multipurpose Vehicle entirely in-house, aligning with domestic defense procurement.
Profitability Correction
Q3 FY26 profitability dipped due to an INR80 crore provision for a metro project that was in a limbo and had to be restarted.
Supply Chain Constraints
Challenges persist in sourcing critical aggregates like HVAC, brakes, interior panels, seats, and castings, though some easing is noted for steel cast (60-70%) and cabins (80-90%).
Mining Order Volatility
Mining orders have been patchy due to delayed rains and a shift from departmental purchase to MDOs, impacting current order book.
Execution Risk for Large Order Book
Current order book of 1,400 cars against a current capacity of 200-250 cars/year, requiring reliance on new facilities and supply chain partners for timely delivery.
New Product Gestation Period
Tunnel Boring Machines require 2-2.5 years for clean sheet design, development, validation, and commissioning before revenue generation. Maritime cranes will take 3-3.5 years to generate revenue.
Supply Chain Dependency
Massive capacity increase requires developing quality, capable, and financially strong industry partners for critical aggregates, with some still under testing or needing more players.
Working Capital Management
While inventory reduction is targeted, progress on debtor reduction 'may not be in our control totally,' indicating potential challenges in receivables.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Revenue growth is explicitly stated as year-on-year. For a project-based capital goods company, YoY comparison provides a more stable view, mitigating quarterly lumpiness in execution and order recognition.
Revenue from Sales Growth
Revenue from sales has grown by around 24% year-on-year.
Current Order Book
Current order book is more than INR16,000 crores, specifically INR16,300 crores.
Expected Order Book (FY26 end)
In the balance period of the current financial year, we expect that we will cross INR20,000 crores in order book.
Profitability (PBT, PAT, EBITDA)
The challenging part has been the dip in the profit, the PBT, the PAT, and the EBITDA.
FY26 Revenue Growth Target
We will try to have a growth in revenue as per the guidance that has been given till now, aiming for 20%, but 'it will only be speculation if I give a number'.
Strategic Investments
Approved INR1,500 crores for Bhopal plant for rolling stock, to be funded through long-term debt financing, with financial closure expected in a couple of months.
In-house Technology Development
Working on developing own Train Control Management System (TCMS) to decide on propulsion suppliers and eventually control part of the electrics for propulsion.
Inventory Reduction Goal
Our endeavor is to reduce the inventory by at least 20%, especially legacy inventories, doing it on a war footing.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Q4 FY26 Revenue Growth | Management is 'trying to reach 20%' for FY26, but states it would be 'speculation' to give a number. | Actual revenue growth for Q4 and full FY26 against the stated aspiration, especially given the Q3 profitability dip. |
| Bhopal Plant Phase 1 Commissioning | Phase 1 completion targeted in 18 to 24 months, adding 300 cars/annum capacity. | On-time completion of civil works and commissioning of Phase 1, and the subsequent ramp-up of rolling stock production capacity. |
| Mining Order Inflow | Order book 'not there currently' but expects orders 'very shortly' from Coal India, Singareni, MDOs, and exports. | Concrete order announcements and value from the mining segment in Q4 FY26 and Q1 FY27 to validate management's confidence. |
| Working Capital (Inventory Days) | Endeavoring to reduce inventory by at least 20%. | Actual reduction in inventory days in the coming quarters, indicating improved operational efficiency and cash flow management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +4.7% / mo · near 52W low
Technical chart
BEMLweekly · 5Y-57.9%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 43.
- SMA20 rising (~4.5% over last month) — short-term momentum positive.
- RSI(14) at 43 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 63% off 52W high · 30% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 8/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -131.3%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 24th percentile of the scored universe and 20th percentile within Industrials. Main check: results consistency is weak at 17/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 20th pctile, median 68 · Small: 28th pctile, median 65
53 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸9 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 7.7%.
- ▸ROE is low at 4.9%.
- ▸ROCE trend is -5.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 103.00
- P/B
- 4.95
- EV/EBITDA
- 38.79
- Market Cap
- 14507.00Cr
Profitability
- ROE
- 4.86%
- ROCE
- 7.71%
- ROA
- 2.01%
- Dividend Y
- 0.61%
Growth (CAGR)
- Revenue 5Y
- 4.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 4.00%
- EPS 3Y
- -2.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 6.64×
- Altman Z
- 3.62
- Book Value
- 352.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 9/5
- OCF
- 118.00 Cr
- EPS TTM
- 16.97
Shareholding
- Promoter Hold
- 54.03%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.