Updated 21 July 2025 at 15:06 IST
BEML Stock Split: Defence Navratna Stock Approves 1:2 Sub-Division-Details Here
BEML has approved a 2-for-1 stock split, cutting share face value to Rs 5, pending shareholder nod. The move follows a strong FY25, with record Rs 294 cr profit. The defence PSU aims to boost stock liquidity and widen investor reach amid robust order flows.
The Board of Directors of BEML has approved a proposal to sub-divide its equity shares in a 2-for-1 ratio, subject to the approval of shareholders. The decision was taken during the company’s 414th board meeting held on Monday.
As per the filing with the stock exchanges, each equity share of face value Rs 10 will be split into two equity shares of face value Rs 5 each, fully paid-up. The move is aimed at enhancing share liquidity and making the stock more accessible to a broader base of investors.
“The Board of directors of M/s. BEML Limited in its 414th Board Meeting held on 21st July, 2025 has inter-alia approved; - sub-division/ split of existing 1 (One) Equity Share of face value of Rs.10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up, subject to shareholders' approval,” the company stated in its filing to BSE.
The company also announced that the record date for the stock split will be fixed and communicated after shareholders grant approval. In addition to the stock split, the board approved the alteration of the Capital Clause in BEML’s Memorandum of Association to reflect the revised share structure, also subject to shareholder consent.
“The record date for the purpose of above sub-division/ split of Equity Shares shall be decided after obtaining approval for sub-division/ split from the shareholders and will be intimated in due course. - alteration of Capital Clause of the Memorandum of Association of the company on account of above sub-division/ split of Equity Shares, subject to shareholder's approval,” the filing added.
The meeting of the board began at 12:15 PM and concluded at 1:30 PM, the company confirmed in its regulatory filing. Further details regarding the shareholder meeting and record date are expected to be shared in the coming weeks.
Strong Financial Performance in FY25
For the quarter ended March 2025, BEML posted a net profit of Rs 288 crore, marking a 12% jump from Rs 257 crore in the same period last year. Revenues for the quarter grew nearly 9% to touch Rs 1,652.5 crore, driven by steady order execution across its core verticals.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also improved, rising 14% year-on-year to Rs 427 crore. Profit before tax came in at Rs 395 crore, reflecting an uptick of 14% as well. These gains were supported by improved margins and cost optimisation measures.
On an annual basis, BEML recorded a net profit of Rs 294 crore for FY25—its highest-ever yearly profit, despite a marginal dip in revenue from Rs 4,054 crore in FY24 to Rs 4,022 crore. The EBITDA margin expanded to 13.2%, compared to 11.98% a year earlier, reflecting better operating leverage.
According to the company, the uptick in earnings was fuelled by robust performance across its three strategic business segments—Defence & Aerospace, Mining & Construction, and Rail & Metro. Notably, its Defence business remained a key contributor, with rising demand for indigenous military-grade equipment bolstering revenue visibility.
About the company
Established in 1964, BEML Limited—formerly Bharat Earth Movers Limited—is one of India’s leading public sector enterprises and operates under the administrative control of the Ministry of Defence. Headquartered in Bengaluru, the company has carved a niche for itself in manufacturing a wide range of equipment, including rail coaches, metro rolling stock, defence vehicles, aerospace systems, and earthmoving machinery.
BEML runs four major manufacturing complexes located in Bengaluru, Mysuru, Palakkad, and Kolar Gold Fields. Its engineering capabilities and manufacturing scale make it Asia’s second-largest producer of earthmoving equipment. Over the years, it has expanded its footprint across domestic and export markets, supplying equipment to countries in Asia, Africa, and the Middle East.
Published By : Avishek Banerjee
Published On: 21 July 2025 at 15:06 IST