Rs 73,450 crore order book: BEL signs Joint Venture Agreement with Safran Electronics and Defence (SED), France for Project HAMMER

Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has received board approval as of February 15, 2026, to enter into a Joint Venture Agreement with Safran Electronics and Defence (SED), France. This collaboration aims to establish a new private limited company structured as a 50:50 equity split between the two entities. The initial authorised share capital is set at Rs 1,00,000, consisting of 1,000 equity shares, with the flexibility to increase this capital up to Rs 10,00,00,000 based on future operational requirements.

The primary objective of this joint venture is to create a "Center of Excellence" dedicated to Project HAMMER. This center will serve as a technology and teaming partner responsible for the manufacturing, supply, maintenance, and repair of the Guidance Kit (GK) for the HAMMER weapon system. While the registered office and principal place of business are slated for Pune or another mutually agreed location, the primary end users for these systems will be the Indian Air Force and the Indian Navy, with the potential for other domestic users to be included upon mutual agreement.

In terms of governance, the new entity's board will consist of four directors, with BEL and SED each nominating two members. The Chairman of the board will be appointed by these nominees but will not possess a casting vote, ensuring balanced decision-making. The operationalisation of this agreement remains subject to necessary regulatory and administrative approvals from both India and France. Currently, there is no cross-shareholding between BEL and SED, and the agreement includes standard provisions regarding share subscription rights and restrictions on changes to the capital structure

About the Company

Bharat Electronics Limited (BEL), a Navratna PSU under India's Ministry of Defence, is a leader in the nation's Defence/Strategic Electronics market. BEL is a multi-Service, multi-technology conglomerate specialising in the design, development, engineering and manufacturing of critical systems like Radars, Weapon Systems, C4I systems, Military Communication and Electronic Warfare & Avionics. Continuously expanding its reach, BEL also actively engages in non-defence sectors such as Homeland Security, Cyber Security, Rail & Metro solutions, Civil Aviation, Space Electronics, Medical Electronics and Anti-drone systems. The company holds CMMi Level 5, ISO AS-9100 and ISO 27001-2013 (ISMS) certifications and is a CERT-In empanelled agency.

The company has a market cap of Rs 3 lakh crore and has been maintaining a healthy dividend payout of 39 per cent. The company’s order book stands at Rs 73,450 crore as of January 28, 2026. The company's shares have an ROE of 29 per cent and an ROCE of 39 per cent. The stock gave multibagger returns of 350 per cent in 3 years and a whopping 890 per cent in 5 years. The stock, which traded at a mere Rs 0.25 in 1999, has experienced exponential growth, delivering over 1,75,000 per cent return to its investors.

Disclaimer: The article is for informational purposes only and not investment advice.