BEL share price can go up to ₹565, scale new peaks, analysts say after strong Q3

Shares of Bharat Electronics Ltd

. (BEL) are expected to remain in focus on Thursday, January 29, following brokerage reactions to its December quarter performance, which came in well ahead of analyst expectations.

Brokerage firm CLSA has retained its 'Outperform' rating on BEL with a price target of ₹522.

The brokerage said that BEL's Q3 profit rose 21% year-on-year, while EBITDA margins stood at 30%, higher than the company's guidance of 27%.

CLSA mentioned that order inflows picked up meaningfully during the quarter, with the best still to come. The brokerage cited positive developments on the order book front, with BEL's largest order, the QR-SAM project, receiving Defence Acquisition Council approval, while the Indian S-400 programme is also expected to contribute going forward.

CLSA added that BEL remains on track to meet its guidance and has entered the AMCA programme race.

Jefferies maintained a 'Buy' rating on the stock and raised its price target to ₹565 from ₹510 per share earlier.

The brokerage said BEL's December quarter EBITDA was 14% above expectations, driven by upside surprises in both revenues and margins. It pointed out that margins for the first nine months of FY26 stood at 29.3%, well above the company's FY26 guidance of over 27% and broadly in line with its own estimates.

Jefferies said that BEL has already achieved 71% of its FY26 order inflow guidance of ₹27,000 crore, which implies 39% year-on-year growth, and reiterated confidence in revenue growth of over 15% for the year.

Management also indicated that the India-EU trade agreement could support R&D and incremental ordering, although the opportunity would become clearer over the next three to six months.

JPMorgan, meanwhile, reiterated its 'Overweight' stance on BEL and raised its price target to ₹556 from ₹498.

The brokerage said that a stronger-than-expected Q3 performance, with consolidated revenue, EBITDA, and PAT rising 24%, 27%, and 20% year-on-year, respectively.

Management reaffirmed its guidance of at least 15% revenue growth in FY26, an EBITDA margin of 27%, and base order inflows of ₹27,000 crore, excluding the QR-SAM project. JPMorgan said that this guidance suggests some moderation in the revenue mix in Q4FY26.

BEL has already announced orders worth ₹19,300 crore in FY26 so far, including ₹18,100 crore till the end of December, against full-year guidance of ₹27,000 crore.

Visibility on the receipt of the ₹30,000 crore QR-SAM order has improved, with management indicating a 90% probability of the order being finalised within FY26.

Of the 32 analysts that have coverage on BEL, 27 of them have a 'Buy' rating, two recommends 'Hold', while three others have a 'Sell' recommendation on the stock.

Shares of Bharat Electronics surged 9.21% on Wednesday to close at ₹454.25 following the results announcement, making it one of the top gainers on the Nifty 50. The stock has rallied nearly 70% over the past 12 months.