Tata Electronics & BEL Partner for Homegrown Semiconductors

Tata Electronics and Bharat Electronics Limited (BEL) have signed a Memorandum of Understanding (MoU) to collaborate on semiconductor and electronics solutions, reinforcing India's push for self-reliance in the sector.

The agreement, formalized on June 5, 2025, at Bombay House in Mumbai, focuses on semiconductor fabrication, Outsourced Semiconductor Assembly and Test (OSAT), and chip design services.

BEL, a Navratna defence PSU, specializes in advanced electronics systems for strategic and civilian use, while Tata Electronics has been expanding its footprint in semiconductor manufacturing.

The partnership aims to develop indigenous solutions, including microcontrollers (MCUs), systems-on-chip (SoCs), and monolithic microwave integrated circuits (MMICs), reducing India's import dependency in critical electronics domains.

 

This collaboration aligns with India's broader vision of strengthening domestic capabilities in semiconductor technologies and fostering innovation in the electronics ecosystem. It’s a significant step toward enhancing India's role in global tech supply chains.

BEL has recently secured a ₹2,385 crore contract to supply Electronic Warfare (EW) Suites for Mi-17 V5 helicopters, enhancing operational survivability in hostile environments.

BEL has been involved in various defence projects, including next-generation air defence systems and electronic warfare solutions, showcased in Indian Army trials.

BEL has been involved in various defence projects, including next-generation air defence systems and electronic warfare solutions, showcased in Indian Army trials. 

Defence Ministry Inks $141 Mn Deal With BEL to Buy Software Defined Radios Manufactured in India

The Ministry of Defence Government of India, recently signed a ₹1,220 crore (approximately $140.79 million USD) deal with Bharat Electronics Limited (BEL) for 149 Software Defined Radios (SDRs) for the Indian Coast Guard. This contract falls under the "Buy (Indian-IDDM)" category, meaning the equipment is designed, developed, and manufactured in India.

These advanced radios will enhance secure and reliable communication, crucial for maritime law enforcement, search and rescue operations, fisheries protection, and marine environment protection. They will also improve interoperability with the Indian Navy, supporting the Government of India's Blue Economy objectives and the Atmanirbhar Bharat initiative.

This bolstering the Coast Guard's operational capabilities and promoting domestic defence manufacturing.

Software Defined Radios (SDRs) are advanced communication devices that use software to perform many of the functions traditionally handled by hardware.

These Software Defined Radios (SDRs) for the Indian Coast Guard were manufactured at Bharat Electronics Limited's (BEL) Bangalore unit. BEL has multiple manufacturing units across India, including locations like Ghaziabad, Pune, Chennai, Kotdwara, Hyderabad, and Navi Mumbai.

SDRs are flexible compared to traditional Radios used by defence units as it can be easily reprogrammed to support different communication standards and protocols without needing hardware changes. This makes them adaptable to new technologies and standards. And, since the same hardware can be used for multiple applications, development and production costs are reduced.

SDRs can be updated with new software to incorporate new features and improvements, extending their lifecycle. Moreover, SDRs have Interoperability advantage as it enable seamless communication between different systems and devices, which is crucial for joint operations and emergency response. SDRs can process signals more efficiently and provide better performance in terms of speed, range, and reliability.

These benefits make SDRs a valuable tool in various fields, including military, emergency services, telecommunications, and research.

Earlier this month, BEL secured a ₹642 crore contract for 28 EON-51 systems, which are Electro-Optical Fire Control Systems. These systems will be used on 11 New Generation Offshore Patrol Vessels and three Cadet Training Ships. Beside, BEL received additional orders worth ₹531 crore for various advanced communication systems, including medical electronics, electro-optics, and active radar homing heads for missiles.

BHEL vs BEL Stocks Performance Overview

Two major engineering and electronics companies listed on the Indian stock market are Bharat Heavy Electricals Limited (BHEL) and Bharat Electronics Limited (BEL), respectively. Both state-owned businesses have become quite important players in India's defense capabilities and infrastructure growth. To help readers make smart choices, this article offers a thorough review of their stock performance, financial situation, and market outlook.

Company Profiles

Bharat Heavy Electricals Limited (BHEL)

Originally established in 1964, BHEL is the biggest manufacturing and engineering company in the energy sector in India. The organization specializes in manufacturing thermal, hydro, nuclear, solar, and thermal power plants. Having a presence in more than 88 countries, BHEL is dedicated to furthering India's self-reliance goals using major technological and research and development (R&D) investments. Its product offerings include power transformers, thyristor valves, and gas-insulated switchgear.

Bharat Electronics Limited (BEL)

Originally established under the Ministry of Defence in 1954, BEL is dedicated to meeting the specific electronic requirements of the Indian Armed Forces. It has evolved over the years into civilian products while still focusing on defense technologies mostly. BEL provides radar systems, missile systems, electronic warfare technology, and communication systems. With nine manufacturing facilities all throughout India, the company has developed into a multi-product conglomerate.

Stock Performance Comparison

Depending on their operational domains and market conditions, BHEL and BEL have seen different stock performances.

Market Capitalization

• BHEL: Approximately ₹77,893.76 Cr
• BEL: Approximately ₹2,05,441.33 Cr

BEL's market capitalization reflects investor confidence and strong demand for its products, so it much exceeds that of BHEL.

Financial Performance Highlights

In terms of profitability, BHEL has encountered challenges. For instance, its Price-to- Earnings (P/E) ratio is rather high at 174.77 but its Return on Capital Employed (ROCE) is only 3.18%. This suggests that, given growing running expenses, investors are skeptical of BHEL's earning potential. Current trends suggest that the BHEL share price has displayed swings inside a range of ₹219.66 to ₹226.35 as investors keep a close eye on its performance.

With a ROCE of 33.71% and a P/E ratio of 45.26 BEL has a far better financial profile. These numbers imply that BEL is making more profit than BHEL using its capital, thereby suggesting effective utilization of it. The company's strong foundations and constant demand for its defense products have shown more consistency in the BEL share price.

Recent Financial Results

In recent quarters:

In September 2024, BHEL recorded net sales of ₹6,584.10 Cr. However, expenses exceeded sales by ₹6,369.19 Cr.

In contrast, BEL maintained profitability despite increased expenditures, with net sales of ₹4,604.90 Cr and expenses of ₹3,316.14 Cr during the same period.

Shareholding Patterns

Both companies' shareholding pattern shows investor confidence:

BHEL

• Promoters hold 63.17% of shares.
• Foreign Institutional Investors (FIIs) account for 9.49%.

BEL

• Promoters hold 51.14%.
• FIIs have a more substantial presence at 17.27%, indicating greater foreign interest in BEL.

SWOT Analysis

BHEL

• Strengths: It has been able to secure a place in the market and it is supported by the government.
• Weaknesses: The company does not make much profit and it incurs very high expenses for operation.
• Opportunities: There are chances for growth in the renewable energy sector.
• Threats: Tough competition experienced from private sector players coupled with changing market trends.

BEL

• Strengths: High profits and no debts.
• Weaknesses: Difficulty in diversifying due to reliance on military contracts.
• Opportunities: Increased demand for defense technology at home and abroad.
• Threats: Political issues affecting military budgets.

Conclusion

All things considered, BHEL and BEL present special investment prospects shaped by their different operational strengths and challenges. While BHEL is dealing with profitability challenges due to competitive pressures in the energy industry, the company stands out for its solid financial metrics and growth prospects in the military sector.

Based on their particular risk tolerance and investment goals, investors should give careful consideration to these factors while assessing purchases in either firm. Comparisons between BHEL and BEL's financial situations and business approaches show how important it is to do one's homework before putting money into a company.

Disclaimer: This article is for informative purposes only and does not provide financial advice or suggestions for investment decisions. Before deciding on any stock market investment, always do thorough research or speak with a financial advisor.

Bharat Electronics and Israel's Aerospace Major Forms New JV Company for Lifecycle Support of India's MRSAM Air-Defence Systems

Bharat Electronics Limited (BEL) and Israel Aerospace Industries (IAI) have formed a joint venture company named BEL IAI AeroSystems Private Ltd. 

This new company, with its registered office in Delhi, will serve as the single point of contact for providing long-term product support to the Medium Range Surface-to-Air Missile (MRSAM) systems used by India's defense forces.

The MRSAM system includes an advanced phased array radar, command and control shelter, mobile launchers, and interceptors with an advanced RF seeker. This system is used by the Indian Air Force, Indian Army, Indian Navy, and also the Israeli defense forces.

This partnership marks a significant step in strengthening the relationship between the two companies, which have a long history of collaboration on strategic programs. The joint venture aims to provide life cycle support, both technical and maintenance-related, for the MRSAM air-defense systems.

BEL and IAI have a long history of collaboration on strategic programs for India's defense forces.

Last year in September, the two companies signed a Memorandum of Understanding (MoU) to explore opportunities in the Short Range Air Defence Systems domain.

Moreover, BEL and IAI have also collaborated on developing tactical missile systems for India's defense forces.

Bharat Electronics (BEL) Develops Drone-based Electronics Intelligence System Prototype

Bharat Electronics Limited (BEL), headquartered in Hyderabad, has taken a significant leap forward in Electronic Intelligence (ELINT) systems by developing a drone-based ELINT system. This prototype marks an important step in bolstering India's electronic warfare capabilities.

For an uninitiated, Electronic Intelligence (ELINT) refers to the intelligence gathered from the analysis of electronic signals and communications. It involves intercepting and analyzing various types of electromagnetic emissions, such as radio waves, radar signals, and electrical signals, to extract valuable information. ELINT plays a critical role in understanding adversary capabilities, detecting threats, and supporting military operations. 

BEL's Drone-based ELINT prototype operates in the 2-18 GHz frequency range, detecting, identifying, and locating radar and communication signals used by potential adversaries. While the current prototype covers a specific range, there's immense potential for further research and development (R&D) to expand its operational spectrum from 0.175 GHz to 40 GHz.

BEL actively encourages private sector expertise and innovation to achieve this broader vision. Drone-based ELINT systems offer advantages such as accessibility to areas traditional ground-based systems can't reach, greater deployment flexibility, and cost-effectiveness for electronic intelligence gathering.

Lockheed Martin and India's BEL to Explore Opportunities in F-21 Fighter Programme

Lockheed Martin (NYSE: LMT) signed a memorandum of understanding (MoU) with Navratna Defence PSU Bharat Electronics Limited (BEL) to explore industrial opportunities in the F-21 programme today at DefExpo 2020. Lockheed Martin is strengthening and growing its partnerships with the Indian industry to support the company's F-21 proposal for the Indian Air Force.

"We are excited to begin exploring F-21 opportunities with BEL, one of India's leading aerospace and defence companies," said Dr Vivek Lall, Vice President of Stragety and Business Development, Lockheed Martin Aeronautics. "An F-21 partnership with India integrates Indian industry, including BEL, into the world's largest and most successful fighter aircraft ecosystem and demonstrates Lockheed Martin's commitment to India."

Mrs Anandi Ramalingam, Director (Marketing), BEL, said: "We are happy to collaborate with Lockheed Martin which is a global major in the aerospace sector. We are eagerly looking forward to cash in on this co-operation to address domestic and international market needs in this sector."

About the F-21

[caption id="attachment_141777" align="alignleft" width="400"] Lockheed Martin and Bharat Electronics Limited signed a memorandum of understanding on February 7 to explore opportunities on the F-21 programme.[/caption]

The advanced, single-engine F-21 is the ideal solution to meet the Indian Air Force's capability needs and deliver unparalleled industrial opportunities. The F-21 delivers an advanced, single-engine multi-role fighter at the most optimal Life Cycle Cost for the Indian Air Force, with the longest service life of any competitor – 12,000 flight hours. In concert with India's Rafale and Tejas, the F-21 will fill a critical operational role for the Indian Air Force.

The F-21 also provides unmatched opportunities for Indian companies of all sizes, including Micro, Small & Medium Enterprises (MSMEs) and suppliers throughout India, to establish new business relationships with Lockheed Martin and other industry leaders in the US and around the globe.

About Lockheed Martin

[caption id="attachment_141776" align="alignleft" width="400"] (PRNewsfoto/Lockheed Martin Aeronautics Com)[/caption]

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

About BEL

A Navratna PSU and India's foremost Defence electronics company, BEL is a multi-product, multi-technology, multi-Unit conglomerate having products in the areas of Radars, Missile Systems, Military Communications, Naval Systems, Electronic Warfare & Avionics, C4I Systems, Electro Optics, Tank Electronics & Gun/Weapon System Upgrade in the Defence segment. BEL is also diversifying into areas such as Homeland Security & Smart Cities, Satellite Integration & Space Electronics, Railways, Artificial Intelligence, Cyber Security, Software as a Service, Energy Storage Products and Composite Shelters & Masts.