New Delhi: BEML Limited is entering a new phase of growth, supported by a strong order pipeline, expanding indigenous capabilities and rising opportunities across India’s infrastructure, mobility, defence and mining sectors.
The company’s diversified portfolio and engineering capabilities are positioning it to benefit from India’s growing focus on self-reliance, localisation and advanced manufacturing. According to ICICI Securities, BEML’s revenue and profit after tax (PAT) are expected to grow at 26% and 102% CAGR, respectively, between FY26 and FY28E.
The brokerage has initiated a BUY rating on BEML with a target price of ₹2,765, based on 40x FY28E earnings per share (EPS).
Rail & Metro Emerges as Key Growth Engine for BEML
BEML is transitioning from a largely mining-led business into a more diversified Rail & Defence-focused engineering company, with Rail & Metro emerging as one of its strongest growth drivers.
Rail & Metro currently accounts for around 65% of BEML’s ₹16,285 crore order book. The business has opportunities across several major programmes, including:
- Vande Bharat Sleeper trains
- Metro projects
- LHB coaches
- Commuter rail
- 280 kmph High-Speed Rail programmes
- Bullet train projects
The company’s Rail & Metro revenue is estimated to rise from ₹1,044 crore in FY26 to ₹2,067 crore in FY27E and ₹3,101 crore in FY28E.
As a result, its contribution to overall revenue is expected to increase from around 24% in FY26 to nearly 45% by FY28E.
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65–70% of FY27 Order Inflows Expected From Rail & Metro
The Rail & Metro opportunity is expected to remain strong over the next few years.
Around 65–70% of BEML’s targeted FY27 order inflows are expected to come from the Rail & Metro segment. The company’s opportunity pipeline includes multiple projects across commuter rail, Vande Bharat, Bullet trains and metro programmes.
The company is also increasing its manufacturing capacity to meet the expected demand.
Capacity expansion includes:
- ADITYA facility: Expected capacity of around 100 metro coaches and 50–70 High-Speed Rail coaches annually.
- BRAHMA facility: Upcoming facility expected to add capacity of around 300–350 coaches annually.
These capacity additions are expected to strengthen BEML’s ability to participate in large, multi-year rail and metro programmes.
Defence Portfolio Expands With Indigenous Platforms
BEML’s Defence & Aerospace business is also undergoing a transformation, moving beyond traditional mobility equipment towards higher-value, indigenously developed platforms.
The company’s growing defence portfolio includes:
- 12×12 Heavy Mobility Vehicles (HMVs)
- Light Armoured Mobility Vehicles (LAMVs)
- Armoured Recovery Vehicles (ARVs)
- Strategic systems and supporting platforms
The 12×12 HMV has completed trials and is qualified for programmes associated with Pinaka, BrahMos and LRSAM.
BEML has identified potential FY27 defence order inflows of around ₹4,000–5,000 crore, excluding Pinaka-related opportunities. In addition, the company has an estimated ₹600–700 crore opportunity related to QRSAM supporting vehicles.
AMCA Participation Provides Long-Term Aerospace Opportunity
BEML’s participation in the Advanced Medium Combat Aircraft (AMCA) consortium provides the company with additional strategic opportunities in aerospace manufacturing.
The AMCA prototype programme carries an indicative outlay of around ₹15,000 crore, offering BEML potential long-term exposure to India’s expanding indigenous aerospace manufacturing ecosystem.
The company’s increasing participation in defence and aerospace programmes is aligned with the country’s emphasis on domestic manufacturing and reducing dependence on imports.
Defence & Aerospace Revenue Expected to Rise
ICICI Securities expects BEML’s Defence & Aerospace revenue to increase from ₹1,523 crore in FY26 to ₹2,120 crore in FY28E.
The expected growth is supported by:
- Rising defence procurement
- Increasing localisation
- Indigenous platform development
- New defence programmes
- Higher-value engineering opportunities
This shift is expected to further diversify BEML’s revenue profile and reduce its dependence on the traditional mining equipment business.
ICICI Securities Initiates BUY Rating on BEML
ICICI Securities expects BEML’s financial performance to strengthen significantly during FY26–FY28E.
The brokerage estimates:
- Revenue CAGR: 26%
- PAT CAGR: 102%
- Target Price: ₹2,765
- Rating: BUY
- Valuation basis: 40x FY28E EPS
The brokerage’s outlook is based on BEML’s transition towards a Rail & Defence-led engineering business, supported by a strong order book, expanding manufacturing capacity and a sizeable multi-year opportunity pipeline.
BEML’s Growth Outlook
BEML’s growth strategy is increasingly centred on sectors where India is expanding infrastructure, defence capabilities and domestic manufacturing.
With Rail & Metro already accounting for a major share of its order book and Defence & Aerospace gaining traction, the company is positioned to benefit from multiple long-term programmes.
Its diversified engineering portfolio, indigenous platforms and capacity expansion could provide additional support as BEML moves towards becoming a broader Rail, Defence and advanced engineering solutions company.
About BEML Limited
BEML Limited is a public sector engineering company under the Ministry of Defence, Government of India. The company manufactures and supplies equipment and engineering solutions for the defence, mining and construction, and rail and metro sectors. With a growing focus on indigenous technologies and advanced manufacturing, BEML is expanding its presence across strategic sectors supporting India’s infrastructure and self-reliance goals.
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