1–2 minutes
🔍 Observations
Topline
- FY26 revenue grew 8.2% YoY (₹4,02,222L → ₹4,35,053L), modest but consistent; Q4FY26 at ₹1,79,417L surged 8.6% over Q4FY25, confirming H2-heavy execution pattern
- Q3FY26 revenue of ₹1,08,327L was unusually weak — sequential collapse of ~40% — pointing to lumpy government order-driven recognition
- Other income rose 24% YoY (₹2,373L → ₹2,944L), marginal contributor but directionally positive
Bottomline
- FY26 PAT collapsed 51.7% YoY (₹29,252L → ₹14,136L) despite 8.2% revenue growth — a sharp earnings-quality deterioration
- Q3FY26 posted a PAT loss of ₹2,238L; Q4FY26 recovered to ₹17,982L, but Q4FY25 PAT was ₹28,755L — Q4 profitability down 37.5% YoY
- Effective tax rate distorted by large deferred tax credit of ₹6,965L in FY26 vs. ₹1,161L charge in FY25; underlying cash tax burden (₹12,725L) stayed elevated
Margins
- FY26 EBITDA (PBT + Finance Costs + D&A): ₹19,956 + ₹4,539 + ₹8,348 = ₹32,843L on revenue of ₹4,35,053L → EBITDA margin ~7.5%, down from ~13.1% in FY25 (₹40,376 + ₹5,431 + ₹7,134 = ₹52,941L on ₹4,02,222L)
- Net margin compressed to 3.2% (₹14,136L / ₹4,35,053L) vs. 7.3% in FY25 — a 410bps contraction
- Other expenses surged 38.8% YoY (₹67,558L → ₹93,787L) on only 8.2% revenue growth — the single largest margin erosion driver
Growth Trajectory
- Revenue CAGR is low-single-digit; at current trajectory BEML is not a high-growth compounder but an order-execution vehicle dependent on government capex cycles
- Provisions rose sharply: current provisions jumped from ₹25,870L to ₹53,259L (+105.9%), signalling warranty, contractual, or contingent liability build-up
- Non-current liabilities grew 8.4% (₹1,11,816L → ₹1,21,178L) while equity grew just 1.6% — leverage creeping up structurally