BEML Limited delivered mixed results for Q3 FY26, showcasing strong revenue momentum while grappling with profitability challenges. The defense and infrastructure equipment manufacturer reported a robust 24% year-on-year revenue growth, demonstrating operational resilience despite market headwinds.

Financial Performance Overview

The company's Q3 FY26 performance reflected both strengths and challenges in execution. While revenue growth remained strong, profitability metrics declined primarily due to project-specific provisions.

The challenging aspect was the decline in profit before tax (PBT), profit after tax (PAT), EBITDA, and total comprehensive income. Chairman and Managing Director Shantanu Roy attributed the profit decline primarily to an ₹80 crore provision for a metro project that required restarting after being in limbo.

Strong Order Book and Future Pipeline

BEML maintains a robust order book of ₹16,300 crores, providing strong revenue visibility for the coming years. The order composition reflects the company's diversified business model across key infrastructure sectors.

Management expects the order book to cross ₹20,000 crores by the end of the current financial year, driven by strong demand across all business segments.

Major Capacity Expansion Initiative

The company announced a significant ₹1,500 crore investment for a new rolling stock manufacturing facility in Bhopal, marking a major expansion in its rail and metro capabilities. This greenfield project will be executed in two phases with modern automation and comprehensive testing facilities.

The facility will feature a double-storied design with car body shell work on the first floor and furnishing on the ground floor. It includes a 2.4-kilometer test track and can manufacture rolling stock for cape gauge, broad gauge, and standard gauge applications.

Product Diversification Strategy

BEML is expanding into high-growth segments with significant market potential. The company is developing Tunnel Boring Machines, starting with 6.5-meter diameter machines for metro projects, addressing India's $5 billion requirement over the next decade.

The maritime crane initiative targets port operations and shipbuilding applications, with potential revenue of ₹5,000 crores annually once fully operational. This includes ship-to-shore cranes, rubber gantry cranes, rail-mounted gantry cranes, and Goliath cranes for shipbuilding.

Business Segment Performance

Rail and Metro Division

The current rolling stock capacity ranges between 200-250 coaches annually, with an existing order book of 1,400 cars. Major upcoming opportunities include:

• MRVC project for AC EMUs: 2,856 cars
• Metro rolling stock projections: 2,500 cars over 4-5 years
• High-speed corridors: Estimated 4,800 cars requirement
• RRTS projects: Additional corridor developments

Defense Segment

The defense division maintains a strong pipeline with multiple programs under development:

• High-mobility vehicles: ₹1,000 crores pipeline
• Strategic systems and engineered equipment: ₹1,000-1,500 crores
• Combat engineering bridging systems: Over ₹1,000 crores
• ARV programs: 194 new vehicles plus 352 overhaul projects

Mining and Construction

While the mining segment currently lacks significant orders, management expects improvement with Coal India's ordering cycle and MDO (Mine Developer and Operator) partnerships. Construction equipment is projected to grow 30% compared to the previous year.

Supply Chain and Manufacturing Strategy

To support the expanded capacity and order pipeline, BEML is strengthening its supply chain partnerships across critical components including brakes, doors, wheelsets, bogeys, propulsion systems, and HVAC equipment. The company is developing indigenous suppliers and working on in-house Train Control Management System (TCMS) capabilities.

Additional manufacturing facilities include the newly operational Aditya facility for high-speed trains and expanded capabilities at the KGF facility for track machines and LHB coaches.

Outlook and Guidance

Management maintains its 15-20% revenue growth guidance for FY26, though execution in the final quarter remains challenging with only 45 days remaining. The company's long-term strategy focuses on becoming a comprehensive infrastructure solutions provider with enhanced capabilities across rail, defense, and emerging sectors.

The ₹80 crore provision taken in Q3 is expected to reverse over the 16-18 month execution timeline due to favorable exchange rate trends, as the affected contract is a deemed export with euro and USD components.

Source: None/Company/INE258A01016/b395cd7d-2eac-4009-b298-585c8bd1ee0b.pdf

BEML Limited has announced the cessation of Shri Bipin Kumar Gupta as Independent Director on the company's Board, effective 10.02.2026. The development was communicated to stock exchanges through a regulatory filing submitted by the company's management.

Director Cessation Details

The cessation occurred in accordance with the terms of the original appointment order issued by the Government of India. The relevant details of the directorship change are outlined below:

Regulatory Compliance

The announcement was made through a formal communication to both major stock exchanges where BEML shares are listed. Company Secretary & Compliance Officer Urmi Chaudhury signed the regulatory filing, ensuring adherence to listing compliance requirements.

Stock Exchange Communication:

• NSE Symbol: BEML
• BSE Scrip Code: 500048
• Filing Reference: CS/SEBI(DP)/745
• Filing Date: 10.02.2026

The cessation appears to be a routine completion of the director's term, as it aligns exactly with the three-year period from his original appointment date in 2023. This type of directorship change is common in government-appointed positions and reflects the structured governance framework followed by public sector enterprises.

Corporate Governance Impact

The departure of an Independent Director represents a change in the company's Board composition. Independent Directors play a crucial role in corporate governance by providing objective oversight and ensuring that the interests of all stakeholders are protected. BEML will need to consider the appointment of a replacement to maintain its Board structure and comply with regulatory requirements for Independent Director representation.