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BEML has received a big order from Bengaluru Metro. The company has received the order to make metro coaches whose value is Rs 414 crore. Today its shares had fallen by more than 1.5 percent but by the end of the market there was a slight rise in them. Traders can expect a rise in shares on Thursday.
New Delhi. BEML has received a new order of Rs 414 crore for Phase 2 of Bengaluru Metro, which means that the company’s rail and metro business is once again gaining momentum. Amidst the increasing infrastructure expansion in the country, this deal is also important because BEML is already among the largest government companies of India manufacturing metro rolling stock. On the other hand, the company’s recent quarterly results were a bit soft. In such a situation, this new order is being considered as a relief for the balance sheet and a sign of getting business momentum back in the coming months. In a way, this deal acts as a booster for the company’s transit portfolio.
Bengaluru Metro Rail Corporation Limited i.e. BMRCL has given the contract to BEML for the supply of additional trainsets for Namma Metro Phase 2. This entire delivery is worth Rs 414 crore. Even before this, many rakes of Namma Metro had been manufactured by BEML, hence this order is like an extension of the existing projects of the company. Rail and metro systems are one of the three major business verticals of BEML. The remaining two are defense and aerospace and mining and construction. The government has aggressively increased investment in the metro network in recent years, which is directly benefiting domestic companies like BEML.
What is the effect of being a government company?
BEML is a Schedule ‘A’ PSU under the Defense Ministry and the government held 53.86 per cent stake in the company till June 30, 2025. This means that the company gets a major share from government projects. From defense equipment to rail coaches, and now Metro rakes, the company works on both strategic and civilian projects. The advantage of government support is that BEML continues to get large long-term contracts, which maintains business visibility. On the other hand, the market often does not give as aggressive valuation to PSU companies as the private sector, hence the company needs a strong order book.
Quarterly results and how the situation can change now
The company had shown a net profit of Rs 48 crore, a decline of 6 percent, in the quarter from July to September 2025. Operating revenue also declined by 2.4 percent to Rs 839 crore. EBITDA remained stable at Rs 73 crore, but operating margin improved slightly to 8.7 percent. It is clear from these figures that the company’s operations are stable, but revenue growth was under pressure. In such a situation, this new order of Rs 414 crore of BMRCL will support both the bookings and cash flow of the company in the coming few quarters. This contract will also help in strengthening the confidence of investors.
position of shares
On the day of announcement of the order, BEML shares fell 0.73 percent to close at Rs 1780 on NSE. This stock has fallen by more than 18 percent in the last one month. It is available at 27 percent cheaper than its 52 weeks high of Rs 2437.80. Today it had fallen by more than 1.5 percent during trading but till the end of the market some buying was seen in it. Investors can expect good profits from this on Thursday. However, the size of the order is not considered that big in comparison to the total order book of the company. Investors will keep an eye on the company’s execution speed and new metro and defense projects in the next two quarters. If the growth continues at the same pace as seen in the last 2 years, then good upside may open in the stock.
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