BEML Limited (BEML)
Small CapIndustrials stocks · Small cap · NSE
BEML Limited is a 'Schedule A' Public Sector Undertaking under the Ministry of Defence, established in 1964. It manufactures heavy equipment for Mining & Construction, Rail & Metro, and Defence & Aerospace sectors, with a pan-India presence and manufacturing complexes.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 30 Jun 2026
Average · 45/100Rev +29% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹820 Cr | +29.3% | -54.3% |
| EBITDA | ₹2 Cr | +104.1% | -99.3% |
| Operating margin | 0.2% | +820 bps | -1480 bps |
| PAT | ₹-27 Cr | NDF | -115.0% |
| PAT margin | -3.3% | +680 bps | -1332 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 revenue grew 8% YoY to Rs. 4351 Crs, supported by a record order book of Rs. 15896 Crs. However, profitability sharply declined, with EBITDA margin falling to 7.54% from 13.20% in FY25, leading to a 51% drop in PBT.
While revenue growth and a record order book provide future visibility, the significant contraction in profitability across all metrics in FY26 is a major concern. This raises questions about execution efficiency, cost management, or pricing power, despite strategic product developments and capacity additions.
Revenue by vertical (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Rail & Metro Expansion
Designed and developed Vande Bharat Sleeper Trains, rolled out prototype of new Driverless Metro Trainset, and secured first ever export order for Metro Rolling Stock.
Defence Modernization
MMME Mk-II inducted into Indian Army, commenced assembly of Light Armoured Multipurpose Vehicle (LAMV), and developing High Mobility Vehicles (HMV 12X12, 8X8, 6X6).
Mining & Construction Innovation
Handed over India's first indigenously designed 21 Cubic Meter Electric Rope Shovel and supplied 550hp Motor Grader.
International Business Growth
Achieved record $107M export order bookings, with significant opportunities identified in West Asia, North Africa, CIS, and SE Asia.
High Speed Rail Facility
New facility 'ADITYA' plant for High Speed Rail inaugurated.
Rolling Stock Plant
New facility for Rolling stock at Bhopal (BRAHMA Project) inaugurated, with 148 acres of land allotted for Rail Mfg Facility.
Warehousing Expansion
New Warehousing facility inaugurated at KIADB Aerospace SEZ in Bengaluru and foundation stone laid for a new Central Warehousing Centre at Bilaspur.
Government Support & Strategic Importance
As a Schedule 'A' Company under the Ministry of Defence, BEML benefits from strategic government initiatives and indigenous development mandates.
Indigenous Product Development
Successful development and flagging off of Vande Bharat Sleeper train and indigenous 21 Cubic Meter Electric Rope Shovel demonstrate R&D capabilities.
Expanding Export Footprint
Record export order book and active pursuit of new international opportunities in diverse regions like Africa, West Asia, and SE Asia.
Profitability Pressure
Significant decline in Gross Margin (EBITDA), PBT, and PAT in FY26 despite revenue growth, indicating potential cost or pricing challenges.
Working Capital Management
Debtors (Days to Revenue) increased from 129 days in FY25 to 176 days in FY26, suggesting potential delays in collections.
Economic Conditions
Economic conditions affecting demand/supply and price conditions in domestic and overseas markets could impact operations.
Regulatory Changes
Changes in government regulations, laws, statutes, and judicial pronouncements could affect the company's operations.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is crucial for assessing overall financial health and margin trends, especially for a capital goods company. QoQ is useful for tracking sequential execution momentum and quarterly revenue patterns, which are evident in the provided data.
Order Book
Highest ever order book of Rs. 15896 Crores, including highest ever Export Order book of $107M in FY26.
Revenue from Operations
Rs. 4351 Crs in FY26, up from Rs. 4022 Crs in FY25 (8% YoY growth).
Gross Margin (EBITDA)
7.54% of Revenue from Operation in FY26, down from 13.20% in FY25.
Profit before tax (PBT)
Rs. 199 Crs in FY26, down from Rs. 405 Crs in FY25 (51% YoY decline).
Strategic Partnerships for Global Reach
MoU with SMH Rail (Malaysia) to jointly explore Rail & Metro opportunities in Malaysia, SE Asia & Africa.
Pursuing Large International Metro Projects
Actively pursuing Tel Aviv Metro ($250M) and Dublin MetroLink ($90M) opportunities, with order finalization expected in the next fiscal year.
Focus on Futuristic Product Development
Continued development of High Speed Rail base vehicles, 60T/100T EV Dump trucks, and 8T Tyre Handlers.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 7.54% (FY26) | Reversal of the sharp decline and stabilization or improvement in profitability from current levels. |
| Order Book Conversion & Execution | Rs. 15896 Crs | Timely execution of the record order book and its translation into profitable revenue growth. |
| Debtors Days | 176 days (FY26) | Improvement in collection efficiency and reduction in the working capital cycle. |
| New Facility Utilization | Aditya, Brahma, SEZ warehousing, Bilaspur CWC | Ramp-up of utilization rates and their contribution to revenue and profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
68Bullishfull bull SMA stack · SMA20 +10.1% / mo · MACD +
Technical chart
BEMLdaily · 1Y · AUTO+26.3%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 66.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~9.1% over last month) — short-term momentum positive.
- RSI(14) at 66 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 55% off 52W high · 52% 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.
Relative Strength & Trend Stage
- Price is 17.4% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +1.6%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- 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 -142.5%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 32nd percentile of the scored universe and 28th percentile within Industrials. Main check: results consistency is weak at 29/100.
Healthy 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: 28th pctile, median 68 · Small: 36th pctile, median 66
48 documents have extracted text, 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.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 7.7%.
- ▸ROE is low at 4.8%.
- ▸ROCE trend is -5.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 96.00
- P/B
- 5.85
- EV/EBITDA
- 39.93
- Market Cap
- 17139.00Cr
Profitability
- ROE
- 4.78%
- ROCE
- 7.66%
- ROA
- 2.49%
- Dividend Y
- 0.83%
Growth (CAGR)
- Revenue 5Y
- 4.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 4.00%
- EPS 3Y
- -3.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 7.14×
- Altman Z
- 3.96
- Book Value
- 352.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 9/5
- OCF
- 118.00 Cr
- EPS TTM
- 21.43
Shareholding
- Promoter Hold
- 54.03%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 76%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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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.