BEML Ltd Management Discussions

(i) Industry structure and developments:

The company, a Schedule-A Public Sector Enterprise under the administrative control of the Department of Defence Production, Ministry of Defence, operates across three business verticals: Mining & Construction,

Defence & Aerospace, and Rail & Metro.

Organization

BEML operates across three primary business segments: Mining &

Construction, Defence & Aerospace, and Rail & Metro, each defined by a distinct product mix. To ensure a sharper focus within these verticals, the company has restructured its operations into 14 Strategic Business Units (SBUs): Mining, Construction, Sustenance- M&C, HMV, Armoured, Commuter Rail, Metro Rail, International Business Division, Hydraulics & Powerline, Engine, Aerospace, Sustenance- Defence, Strategic Systems, and Sustenance-Rail & Metro. In addition, two micro-SBUs — SEZ and Maritime — have been established under the Aerospace division.

This strategic restructuring is designed to capture emerging market opportunities, strengthen BEMLs presence in specialized areas, and maximize revenue and profitability. As of March 31, 2026, the companys workforce stood at 4,870 employees.

Production Units

BEML operates four manufacturing complexes located in Bengaluru,

Kolar Gold Fields (KGF), Mysuru, and Palakkad.

Bengaluru Complex: This facility

manufactures a wide range of railway products, including Vande Bharat Sleeper Coaches, High-Speed Trains, LHB Coaches, Rail Coaches, AC Electrical Multiple Units (ACEMU), Diesel Electric Multiple Units (DEMU), Main Line Electric Multiple Units (MEMU), Stainless Steel Electrical Multiple Units (SSEMU), and Overhead Equipment Inspection Cars (OHE Cars) for Indian Railways. It also produces advanced stainless-steel metro cars supplied to Delhi, Bengaluru, Jaipur, Kolkata, and Mumbai Metro Rail Corporations.

KGF Complex: The KGF Complex houses the Earth Movers Division, Hydraulics & Powerline Division, Rail Unit-II, and Heavy Fabrication Unit. The Earth Movers Division manufactures equipment such as bulldozers, hydraulic excavators, wheel loaders, wheel dozers, pipe layers, tyre handlers, hydraulic cranes, walking draglines, electric rope shovels, engineering mine ploughs, trawls and hulls for Tank T-72, Light Armoured Multi-purpose Vehicle(LAMV) and armoured recovery vehicles. The Hydraulics & Powerline Division produces transmissions, axles, hydraulic aggregates, and allied assemblies for BEMLs manufacturing units. Rail Unit-II manufactures rail coaches, rail grinding machines, and structural components for railway products.

Mysuru Complex: This complex includes the Truck Division, Engine Division, and Aerospace Manufacturing Division. The

Truck Division produces off-highway rear dump trucks, motor graders, and water sprinklers. The Engine Division manufactures diesel engines for BEMLs product range and combat vehicles. The Aerospace Manufacturing Division produces ground handling equipment, weapon loaders, and aggregates for missiles and aerospace applications.

Palakkad Complex : The Palakkad

facility manufactures ground support equipment, including high-mobility trucks in 12x12, 10x10, 8x8, and 6x6 configurations, used as transport equipment and platforms for bridge systems, missile carriers, missile launchers, warhead carriers, MAST systems, surveillance radars, and command post vehicles. It also produces mechanical and pontoon bridge systems, ejector and air cleaner assemblies, and aggregates for rail and metro products.

Marketing Network: BEML markets and services its products through a nationwide network of 3 zonal offices, 12 regional offices, 7 activity centres, 1 Defence spares division and 16 district offices. Temporary activity centers are established at customer sites to provide support and service. Service Training Centers at KGF and Mysuru offer year- round training programs. Each business segment has a dedicated marketing setup responsible for business development, tender participation, and project management.

International Business Division:

BEML exports its products through its International Business Division, with major markets in the Middle East, Africa, and Southeast Asia. In 202526, the company exported goods and services to Uzbekistan, Russia, Oman, Tunisia, Thailand, Dubai and Indonesia, expanding its global footprint to 73 countries.

* 2025-2026

Developments & Performance during 2025-26:

Indias latest GDP estimates show that real GDP growth is projected at 7.6% in 2025-26, compared to 7.1% in 2024-25, according to the Central Statistical Organization (CSO) under the Ministry of Statistics and Programme Implementation

The Company achieved important milestones during the year and some of them are mentioned here under:

Defence & Aerospace

BEMLs Defence & Aerospace sector in FY 2025-26 achieved profitability recovery and operational milestones in missile support and testing infrastructure

> BEML-Engineered Mechanical Mine Marking Equipment (MMME Mk-II) was Inducted into Indian Army

> BEML received 150 Nos of HMV 6X6 and 120 Nos of HMV 8X8 orders from MoD

> BEML has taken a significant step forward in the Defence & Aerospace sector by securing an order from Bharat Electronics Limited (BEL) for the supply of one HMV 8x8 vehicle under the QRSAM (Quick Reaction Surface-to-Air Missile) project. This order underscores BEMLs growing role in supporting Indias strategic defence initiatives and highlights its capability in delivering advanced mobility solutions for missile systems.

> BEML Ltd. played a key role in ISROs successful LVM3-M6 mission by supplying the Strap-On Base Shroud (SBS) airborne structures, a vital component of the LVM3-M6 launch.

> Proto equipment of Light Armoured Multipurpose Vehicle (LAMV) 4X4 has been fielded for trials.

> Signed three MoUs with M/s DCIL to Strengthen Indias Maritime & Dredging Capabilities worth approximately Rs. 350 Crs.

i. To establish a strategic alliance for BEML to supply cable dredgers, long-reach excavators with dredge pumps, and customized dredging solutions. These will be used to take up reservoir de-siltation (removing silt build-up from dams) as part of a business diversification effort.

ii. To form a strategic alliance for BEML to build five (5) Inland Cutter Suction Dredgers of different capacities under the ATMA NIRBHAR initiative.

iii. To create a strategic alliance for BEML to supply indigenous (domestically-made) spare parts for DCIs existing dredgers.

> Signed MoU with M/s Hindustan Shipyard Limited to jointly develop advanced marine systems.

> Signed MoU with M/s. Kineco Limited to collaborate in the field of advanced composite manufacturing for Defence and Aerospace applications.

> BEML has received an order from the Indian Air Force for the overhauling of 22 High Mobility Vehicles (HMVs). This marks a significant milestone, as it represents the companys entry into the vehicle overhauling business, thereby expanding its service portfolio beyond manufacturing and strengthening its role in defence lifecycle support

> As part of increasing the capacity the following facilities were inaugurated for Defence and Aerospace Sector.

¦ A new hanger for High Mobility Vehicles, at Palakkad.

¦ A state-of-the-art robotic welding cell and modern High Mobility Vehicle (HMV) axle assembly shop at KGF complex.

¦ Inauguration of New Warehousing facility at the KIADB Aerospace Special Economic Zone (SEZ) in Bengaluru

Mining & Construction

> Handed over Indias first indigenously designed and developed 21 cu.m electrical Rope shovel Model: BRS21 from BEML, Kolar Gold Fields Complex to the customer. This has been done in record time of 3 years from receipt of order.

> Roll out of indigenously designed and developed 550 hp Motor Grader, Model BG1205 for use in M/s South Eastern Coal Fields Ltd.

> Relaunched BL9H and BE220G equipment with significant updates.

> Supplied 10 Nos of BD355 from M/s Rudnik Teutedzhak, Russia

> Supplied 1 No of 28KL water sprinkler (WS28-2) and 2 Nos of 60T Dumper (BH60M) from Oman

> Signed MoU with M/s. TESMEC S.p.A for manufacturing and supply of surface miners in India.

Rail & Metro

> Vande Bharat Sleeper Train designed & developed by BEML was dedicated to the Nation by Honble Prime Minister of India at Malda, West Bengal.

> Rolled Out Prototype of New Driverless Metro Trainset for BMRCLs Phase-2 Network

> Received order for 600 Coaches of LHB from M/s ICF

> Received order for 26 Nos of Utility Track Vehicle (UTV) from Railway Board.

> Received order for Metro Services from Malaysia

> Received contract for Manufacture of 15 sets (30 cars) of Switch Rail Grinding Machines from M/s. Loram Rail Maintenance India Private Limited

> A newly build workshop equipped with State-of-art Technology Gantry- type Robotic Laser welding system for high-precision fabrication and robust structural integrity for High Speed Rail was setup.

> Foundation stone laid for New Bhopal Plant (BRAHMA) by Honble Raksha Mantri

> In significant step towards transforming Indias freight ecosystem BEML, Deendayal Port Authority (DPA), Delhi Metro Rail Corporation (DMRC) and Umeandus Technologies India Pvt Ltd have signed MoU to develop Enhanced Freight Transport System (e-FTS) - an advanced, rail-based freight mobility solution that will automate and modernize cargo handling across Indias ports.

General

> Additional SBUs forDefence Sustenance and Strategic Systems were formed to have focus and as a step towards growing into a system integrator.

> Honored with the National Award for Outstanding Export Performance at the 55th EEPC INDIA National Awards 2025

> Awarded Golden Peacock EcoInnovation Award 2025 for Indegeniously dev eloped all-electric BRS21-21 Cu m Rope shovel

* 2025-2026

> BEML received the following EEPC Indias Southern Regional Export Award under Large Enterprises Category

S Special Trophy for Excellence in Exports of High Technology Products for 2021-22

S Special Trophy for Excellence in Exports of High Technology Products for 2022-23

> BEML was awarded at ET Leadership Excellence Awards 2025 for the following

• Excellence in Indigenous Engineering Award

• Trusted Brand Excellence Award

> Received EEPC Quality Gold Awards

> BEMLs Team ENERGY TREE from KGF Complex, has won Gold Award at International Convention on Quality Control Circle 2025, Taiwan.

> BEML has been honoured with two prestigious awards at the 2nd Edition of the National Economic Growth Summit

S BEML Ltd.: Best Brand of the Year

S Shri Shantanu Roy: Business Leader of the Year (Manufacturing)

> BEML Palakkad Complex has received Kerala Safety Award under Very very large factory category, Engineering/ Automobile Industry, Instituted by Dept of Factories & Boilers.

> BEML Limited has been honored with 3 Awards during the 12 th Governance Now PSU Awards :

S PSU Leadership Award - CMD

S Aatmanirbhar Bharat Innovation Award

S Communications Excellence Award

(ii) Strengths and Weakness:

(a) Strengths

> Trusted Defence Partner Long-standing support to the Indian Defence Forces, maintaining and upgrading fleets that are over 60 years old.

> Integrated Capabilities Covers the full spectrum — R&D, production, maintenance, and repair contracts — across all three verticals (Defence, Rail & Metro, Mining & Construction).

> Strong R&D Base - Over 87% of sales come from in-house R&D products, backed by dedicated test facilities.

> Mining Equipment Capability- Proven ability to design and manufacture high- end mining machinery for large-scale operations.

> Heavy Fabrication Strength- Expertise in stainless steel fabrication for metro cars, EMUs, and coaches.

> Defence Infrastructure Development Supported by the Government of India and skilled manpower, enabling large- scale defence and aerospace projects.

> Competitive Edge- More than 73% of sales achieved in competition mode, showing resilience and market strength.

> Sales & Service Network- Extensive presence with zonal, regional, district offices, and activity centres across India.

> Market Leadership -Holds major market share in high-capacity dozers and metro cars in India.

> Strong Relationships- Deep ties with defence services, labs, government agencies, and PSUs.

> Sustainability Commitment - Operates as a green company, using renewable energy sources.

> Brand Value & Ethics - Recognized for strong brand equity, a large customer base, and a culture of work ethics.

(b) Weakness

> Ageing Workforce Depletion of skilled manpower and reliance on an ageing workforce reduces agility and innovation capacity.

> No Assured Orders Unlike some other DPSUs, BEML does not have guaranteed business from the Government of India, making revenue streams less predictable.

> Railways Uncertainty Rolling stock orders from Indian Railways are inconsistent, creating uncertainty in the Rail & Metro vertical.

> Low Construction Equipment Share Despite strong capabilities, BEML has a relatively small market share in the highly competitive construction equipment sector.

(iii) Opportunities and Threats:

(a) Opportunities

Defence & Aerospace:

> Capital Acquisition f 1.85 lakh crore earmarked for new platforms — next- gen fighter aircraft, advanced weapons, ships, submarines, UAVs, and drones. BEML can expand its role in mobility vehicles, tank engines, and support systems for these platforms.

> Border Roads Organization Increased allocation for BRO projects creates scope for BEMLs dozers, excavators, and heavy construction equipment in strategic border infrastructure.

> Indigenous Procurement f 1.39 lakh crore set aside for domestic Defence industries boosts demand for homegrown vehicles, fabrication, and aerospace systems.

> MRO & Upgrades Growing opportunities in maintenance, repair, overhaul, and upgrade programs for ageing fleets — an area where BEML already has strong credentials.

> Aero & Space Clusters Emphasis on UAVs and aerospace clusters opens avenues for BEML to contribute ground support equipment, fabrication, and integration systems.

> Maritime & Naval Indigenization As part of Amrit Kaal, BEML can indigenize naval aggregates, maritime support systems, and fabrication for shipbuilding projects.

> Export Thrust Government push for exports through Lines of Credit (LoC) creates opportunities for BEML to supply dozers, recovery vehicles, and defence support equipment to friendly nations.

Mining & Construction:

> CAGR Growth in Mining Indias mining sector is expected to expand at 6-7% CAGR, driven by demand for coal, iron ore, and rare earth minerals. This growth boosts demand for dozers, excavators, dump trucks, and loaders — BEMLs core product line.

> Budget Allocation for Infrastructure The Union Budget 2026-27 has significantly increased allocations for roads, highways, and industrial corridors, creating opportunities for BEMLs construction equipment in tunneling, earthmoving, and road-building projects.

> Rare Earth Corridors New mining hubs in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu will require high-capacity mining equipment, where BEML can leverage its expertise in heavy machinery.

> Capital Goods Incentives Budget provisions under the Capital Goods & Infrastructure Equipment Scheme support domestic manufacturing of

tunnel-boring machines, cranes, and lifts, aligning with BEMLs fabrication strengths.

> Sustainability & Green Mining With emphasis on renewable energy and ecofriendly mining, BEML can expand into electric and hybrid mining equipment, enhancing its Green Company positioning.

> Export Potential Indias push for mining equipment exports under Viksit Bharat creates opportunities for BEML to supply dozers and excavators to emerging markets in Africa and Southeast Asia.

Rail & Metro:

> Metro Expansion Projects With new metro lines planned in Tier-1 and Tier- 2 cities, BEML can supply metro cars, EMUs, and stainless-steel coaches, strengthening its market leadership.

> Indigenous Rolling Stock Government focus on Atmanirbhar Bharat ensures preference for domestic suppliers. BEMLs proven expertise in stainless steel fabrication and R&D-driven designs positions it well.

> Budget Allocation for Urban Transport The 2026-27 Union Budget has increased allocations for urban transport and metro rail projects, creating demand for BEMLs rolling stock and maintenance contracts.

> High-Speed Rail Opportunities Indias push for semi-high-speed and highspeed rail corridors opens opportunities for BEML to collaborate on coach manufacturing and support systems.

> Maintenance, Repair & Overhaul (MRO) Growing emphasis on lifecycle support and upgrades for metro cars and EMUs creates recurring revenue opportunities for BEMLs service network.

> Export Potential With India promoting metro exports to friendly nations, BEML can expand into South Asia, Africa, and Middle East markets.

> Green & Sustainable Rail Demand for energy-efficient, lightweight, and ecofriendly metro cars aligns with BEMLs Green Company initiatives

New Areas:

> Marine & Naval Systems Indigenization of maritime aggregates and naval support platforms.

> Aerospace & ISRO Prospects in aerospace clusters, ISRO collaborations, and ground support equipment.

> Unmanned Ground Vehicles Development of autonomous combat and logistics vehicles.

> Unmanned Aerial Vehicles Opportunities in UAV support systems and integration.

> Aircraft & Helicopter Aggregates Manufacture of fixed-wing aircraft and helicopter aggregates.

> AI & Robotics Systems Defence platforms enabled with AI, robotics, and automation.

> Electric Drive Equipment Demand for high-end electric drive dump trucks, excavators, and bulldozers, aligning with green mining initiatives.

> Ground Combat Platforms Heavy-duty combat-ready engineering equipment for defence infrastructure.

> High-Speed Trains Participation in Indias high-speed rail corridors.

> Medium-Speed EMUs Supply of stainless-steel EMUs for expanding suburban networks.

> Light Rail Systems Emerging opportunities in Tier-2 and Tier-3 cities adopting light rail.

> Maintenance Equipment Rail grinding machines, track cleaning machines, and other specialized maintenance equipment.

(b) Threats

> Intensifying Competition Increased competition from Indian private players and global OEMs (like Caterpillar, Komatsu, Alstom, Siemens) erodes BEMLs market share in defence, mining, and rail.

> Technology Leaders Operating Directly Global technology leaders increasingly preferdirect operations in India ratherthan licensing or partnering, limiting BEMLs access to advanced technologies.

> Mergers & Acquisitions Consolidation in the mining and construction equipment industry strengthens competitors, creating larger, more resourceful rivals.

> Critical Technology Access Difficulty in sourcing certain critical and denied technologies (e.g., advanced electronics, propulsion systems) hampers product development.

> Rapid Tech Changes Fast-paced innovation in AI, robotics, and electrification requires continuous investment, which can strain BEMLs resources.

> FDI Liberalization Increased FDI caps in coal and defence sectors allow global companies to establish stronger footholds in India, intensifying competition.

> Policy Bias Toward Private Sector Government policy interventions increasingly favour private sector participation, reducing the preferential advantage traditionally enjoyed by PSUs like BEML.

(iv) Outlook:

Mining & Construction:

In FY 2026-27, BEMLs Mining & Construction business is set to benefit from the Government of Indias emphasis on reducing import dependency for mining equipment and ramping up annual coal production, which has created sustained demand for high-capacity dozers, excavators, and dump trucks. Infrastructure development strategies and collaborations with CIS countries furtherenhance prospects, while export opportunities to Africa, ASEAN, and MENA regions strengthen BEMLs global footprint.

In addition to its established product lines, BEML is expanding into high-end mining equipment to meet the growing requirements of large-scale mining operations. The company is also investing in electric mining equipment, aligning with Indias sustainability goals and global trends toward eco-friendly mining practices. Furthermore, BEMLs focus on surface miners positions it to capture opportunities in selective mining applications, offering efficiency and reduced environmental impact. Together, these initiatives highlight BEMLs comprehensive strategy to seize opportunities in the mining and construction sector, reinforcing its role as a key contributor to Indias self-reliance and export growth.

Defence & Aerospace:

In FY 2026-27, BEMLs Defence & Aerospace business continues to benefit from government measures fostering indigenous design and manufacturing under Atmanirbhar Bharat and the positive indigenisation list. These initiatives have opened avenues in armoured vehicles, recovery vehicles, de-mining equipment, and gun system platforms. A major milestone was achieved with the development of Indias indigenous 1500 HP tank engine prototype, underscoring BEMLs leadership in defence production and its plans to expand into engine variants for diverse requirements.

In the Aerospace domain, anticipated orders for aircraft and helicopter aggregates, ISRO-linked space program components, and collaborations with DPSUs and private players for missile program aggregates and high-mobility vehicles are expected to accelerate growth. BEML is also diversifying into the Maritime business, focusing on indigenization of dredging spares, providing dredging solutions, and supporting naval systems. This foray strengthens its presence in marine engineering and complements its defence portfolio.

Additionally, opportunities in AI and robotics-enabled systems, unmanned ground vehicles, and UAVs align with Indias modernization priorities, positioning BEML as a key contributor to next-generation defence technologies. Together, these initiatives reinforce BEMLs strategy of becoming a multi-vertical engineering powerhouse, advancing Indias self-reliance goals while expanding into new domains like maritime and aerospace.

Rail & Metro:

In FY2026-27, BEMLs Rail & Metro business has gained significant traction with the flagging off of Vande Bharat sleeper trains, which has enhanced its capability to meet the growing demand for these advanced train sets. The company has also secured orders for LHB coaches, reinforcing its strong presence in passenger rolling stock. As metro rail projects expand into Tier-II cities across India, BEML is well-positioned to capture upcoming metro car contracts, leveraging its expertise in stainless steel fabrication and R&D-driven designs.

Additionally, the rising demand for suburban trains, particularly Electric Multiple Units (EMUs), along with forthcoming tenders, is

expected to positively impact revenues. The design and manufacturing of Indias maiden high-speed train marks a pivotal milestone, setting the tone for the future of Indian rail business and opening new avenues for BEML in advanced rail technology. Beyond passenger transport, the Government of Indias focus on addressing port congestion has prompted BEML to take proactive measures, positioning itself to supply specialized rail maintenance and logistics equipment.

BEML marked a significant milestone with the receipt of its first export order during the year 2025-26. This achievement underscores the companys growing global footprint and validates its strategy of diversifying beyond domestic markets.

Together, these developments highlight a robust growth trajectory for BEML in the Rail & Metro segment, driven by modernization, urban expansion, and strategic infrastructure priorities.

Exports:

On the export front, the Company has secured export orders from Middle east Countires and equipment were supplied. Additionally, supplies of orders received from M/s. BEL & M/s. BDL for the supply of High Mobility Vehicles is progressing.

The Company is actively pursuing various business opportunities in the Defence, Mining & Construction, and Rail & Metro

(vi) Procurement

Onboarding on TReDS Platforms segments across SAARC, AFRICA, ASEAN, LATAM, and MENA regions.

With this strategic approach, BEML aims to explore opportunities for exporting High Mobility Vehicles and Aircraft towing tractors in the Defence sector, as well as Rail coaches, Metro Cars, and Maintenance vehicles in the Rail & Metro business. This initiative also extends to the export of Mining & Construction equipment.

(v) Challenges, Risks and Concerns:

BEML faces several pressing concerns:

> Supply Chain Disruptions Global geopolitical tensions and logistics bottlenecks continue to affect sourcing of critical components, impacting production timelines.

> Dumping Price Strategy International players adopt aggressive pricing in Mining and Metro projects, challenging BEMLs ability to maintain margins.

> Continuity of Orders Dependence on steady procurement from the Indian Army and Indian Railways remains a risk, especially amid shifting budget priorities.

> Indigenisation Challenges Localization of parts and components is hindered by minimum order quantity requirements, quality assurance issues, and cost competitiveness.

BEML has onboarded on all 5 TReDs platforms the details are as below:

Sl.No	Firm Name	Portal Name	Onboarding Date
1	M/s. Receivables Exchange of India Ltd.	RXIL	11.04.2018
2	M/s. Mynd Solutions Pvt. Ltd.	MIXchange	20.03.2020
3	M/s. A.TREDS Limited	Invoice Mart	13.09.2024
4	M/s. KredX Platform Private Limited	DTX	31.07.2025
5	M/s. C2FO Factoring Solutions Private Limited	C2treds	15.09.2025

Timely Payments to MSE Vendors

BEML has been making timely payment to MSE Vendors the details for the year 2025-26 are as below.

Rs.In Lakhs

Timely Payment to MSE (Through TreDS or Directly) - All transactions to cover for Fy 2025-26
No. of Suppliers (No.)	Total No of Invoices during the year (Rs.)	Total Annual Procurement Value (Rs.)	No of Invoices Involved in delay (No.)	Total Amount Involved in delay (Rs.)	Payment made within 45 days (Rs.)	Payment made after 45 days (Rs.)	Payments Pending beyond 45 days (Rs.)
2021	49105	1,27,118.69	0	0	1,27,118.69	0	0

Procurement through GeM

The details of GeM procurement during the year 2025-26 is as below:

Sl .No	Particulars	Value (Rs. Cr)	Mode of Procurement
1	Total Procurement of Goods & Services (irrespective of availability on GeM or from MSEs)	4,489.32	e-mode
2	Procurement of Goods & Services through GeM	2,820.37

Procurement through MSE

The details of procurement through MSE during the year 2025-26 is as below:

Sl .No	Particulars	Value (Rs. Cr)
1	Procurement of Goods & Services from MSEs	1,391.89
2	Procurement of Goods & Services from SC/ST-owned MSEs	8.00
3	Procurement of Goods & Services from Women-owned MSEs	74.38

(vii) Health and Safety Initiatives for Human Resources

BEML has strengthened workplace safety and employee well being through a series of initiatives during the year.

Safety Audit: A comprehensive safety audit was conducted across all complexes, leading to the standardization of protective gear such as high visibility reflective jackets and color coded helmets,

Safety Directory: The Safety Directory has been prepared to serve as a comprehensive guide for workplace safety. It includes a detailed analysis of hazardous areas and occupations, with Standard Operating Procedures (SOPs) created for all processes to ensure uniform compliance. All safety regulations and requirements are systematically covered within the directory, making it a central reference for employees and management alike. In addition, inspections of lifts and hoists, along with verification of the availability of essential safety equipment and kits, are incorporated as integral components, ensuring that operational safety standards are consistently upheld.

Onsite emergency plan: The Onsite Emergency Plan has been prepared to ensure authority and alignment with organizational requirements, formally released at the Divisional COM following approval by the Divisional Head. To build awareness and readiness, a sensitization program was conducted, enabling employees to understand procedures, responsibilities, and actions outlined in the plan. Complementary initiatives such as systematic housekeeping, regular mock drills on emergency preparedness, and shop floor inspections carried out jointly by the respective Shop In charge and Safety Officer further reinforce safety culture. In addition, health and safety awareness programs have been introduced to strengthen employee engagement and foster a proactive approach to workplace safety.

Wellness Programs: The organization has implemented a series of wellness programs designed to promote employee health and well being. Periodical health check ups are conducted for employees above 45 years, while women employees above 40 years are offered breast cancer and Pap smear screenings. In alignment with the National Tuberculosis Elimination Program (NTEP), tuberculosis screening has also been introduced. To address mental health, sessions and seminars on improving resilience against loneliness, depression, and anxiety are organized, fostering psychological well being. Additionally, talks on cardiac health and healthy lifestyle practices provide valuable guidance for preventive care. These initiatives are complemented by the celebration of Health Day as part of a broader health awareness campaign, reinforcing the companys commitment to holistic employee wellness.

Further, to support employees medical needs, hospitals and diagnostic centers near BEML offices have been empaneled and the BEML owned medical centre at KGF has

» 2025-2026

been upgraded. Training programs in yoga and mental health have been introduced. Recreational facilities such as tennis courts have been opened at the KGF complex, ensuring a holistic approach to safety, health, and employee wellness.

BEML is certified for ISO 45001 (Occupational Health & Safety Management System) standards, reflecting its commitment to workplace safety and employee well being. Reinforces initiatives like standardized helmets, jackets, and onsite emergency plans. Demonstrates compliance with international safety standards, boosting credibility in defense and heavy engineering sectors.

(viii) Internal control systems and their adequacy:

The Company has an internal control system designed to provide high degree of assurance regarding optimization and safeguarding of resources, quality and reliability of financial and operational information, compliance with applicable statutes and corporate policies. It is the Companys endeavor to align all its processes and controls with global best practices.

The internal audit process is designed to review the adequacy of internal control checks in the system and covers all significant areas of the Companys operations. The internal audit department performs risk-based audits, based on an internal audit plan which is reviewed every year in consultation with statutory auditors and the Audit Committee. The Audit Committee reviews audit reports submitted by internal auditors and follow up on the implementation of corrective actions periodically.

The Statutory Auditors submit a report on internal financial controls over financial reporting along with their Audit Report on the financial statement every year. BEML being a Government Company, is subject to audit by Comptroller and Audit General of India.

A comprehensive Delegation of power exists for smooth decision making which is being periodically reviewed to align It with changing business environment and for speedier decision making. The Company has implemented an enterprise-wide ERP. The Company has end to end SAP platform to provide a robust foundation to address several emerging business needs.

(ix) Segment-Wise or Product- Wise Performance

All the applicable Accounting Standards are followed except IND AS-108 relating to Segment reporting keeping in view the nature of business and the sensitive nature of the disclosure. As the Company is engaged in defence production, an exemption from applicability of IND AS-108 was granted vide Notification No 1/2/2014-CL-V dated 23 rd February, 2018 issued by Ministry of Corporate Affairs. Necessary disclosure is being made in Notes forming part of Accounts in this regard

(x) Discussion on financial performance with respect to operational performance:

(Rs. crore)

Particulars	2025-26	2024-25
a. Revenue from Operations (Incl. of other operating income)	4351	4022
b. Revenue from Operations (Incl of sale of products and services)	4154	3839
c. Value of Production	4239	3905
d. Profit before Depreciation, Interest and Tax	328	531
e. Finance costs	46	54
f. Depreciation and amortization expense	83	71
g. Profit Before Tax	199	405
h. Tax Expense	52	111
i. Profit after Tax	147	294
j. Other Comprehensive Income	(4)	2
k. Total Comprehensive Income	143	296
l. Networth	2909	2854
m. Inventory	2338	2379
n. Trade Receivables (Net)	2274	1696
Total Inventory in no. of days of VoP	201	222
Trade Receivables/ Revenue from Sale of Products and services (including GST)	176	129
Profit before Tax to Revenue from operations (a) (%)	4.57%	10.07%
Profit after Tax to Networth (%)	5.05%	10.30%

Your Company achieved Revenue from Operations of f 4351 crores as against f 4022 crores in the previous year, up by 8.18%. Value of Production is f 4239 crores as against f 3905 crores in the previous year, up by 8.55%. The Company registered a Profit before Tax of f 199 crore as against Profit before Tax of f 405 crore in the previous financial year, down by 50.86%.

* ZUZO-ZUZD

There was no change in the nature of business of the Company during the year. Further, there was no material change/ commitment occurred affecting the financial position of the Company subsequent to the financial year ended 31.03.2026 till the date of this report.

(xi) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Key Financial ratio		2025-26	2024-25	%age Change	Explanation
(i)	Debtors Turnover	2.45 times	2.95 times	-17.00	Increase in Debtors
(ii)	Inventory Turnover	1.76 times	1.66 times	-6.00	--
(iii)	Interest Coverage Ratio	5.39 times	8.46 times	-36.00	Decrease in profit
(iv)	Current Ratio	2.00 times	2.66 times	-25.00	Increase in Debtors
(v)	Debt Equity Ratio	0.10 times	0.08 times	25.00	Increase in borrowings
(vi)	Operating Profit Margin (%)	5.00%	11.00%	-55.00	Decrease in profit
(vii)	Net Profit Ratio (%)	4.00%	8.00%	-50.00	Decrease in profit

(xii) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Key Financial ratio	2025-26	2024-25	%age Change	Explanation
Return on net worth	5.05%	10.30%	-51.00%	Decrease in profit

(xiii) Material developments in Human Resources, Industrial Relations front, including number of people employed:

Relevant information in this regard is disclosed in the Boards Report.

(xiv) Environmental Protection and Conservation, Technological conservation, Renewable energy developments, Foreign Exchange conservation:

Relevant information in this regard is disclosed in Annexure-I to the Boards Report.

(xv) Corporate Social Responsibility and Sustainability (CSR):

Relevant information in this regard is disclosed in Annexure-VI to the Boards Report.

Cautionary Statement - Certain statements made in the Management Discussion and Analysis Report related to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether expressed or implied. Several factors could make significant difference to the Companys operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control.

For and on behalf of the Board of Directors

	Sd/-
Place: Mysuru	Shantanu Roy
Date: 29.05.2026	Chairman & Managing Director