Bangalore Metro Awards BEML a Rs.414-Crore Contract to Expand Its Train Fleet

BEML Bags Major ₹414 Crore Bangalore Metro Order as Phase II Expansion Gains Momentum

In a development that reinforces its growing presence in the country’s mass transit sector, BEML Ltd has secured a ₹414 crore order from Bangalore Metro Rail Corporation Ltd (BMRCL) for the supply of new trainsets under the Namma Metro Phase II expansion. This fresh order marks another strategic milestone for the company, which has been deeply involved in India’s metro rail buildout across multiple states.

The contract is part of the Phase II augmentation of the Bengaluru metro network, which aims to expand connectivity, increase ridership capacity and strengthen last-mile urban mobility solutions for one of India’s fastest-growing cities.

Order Strengthens BEML’s Rail and Metro Portfolio Amid Growing Urban Transit Demand

The new ₹414 crore order further strengthens BEML’s rail and metro business, one of its key operating verticals alongside defence and aerospace, and mining and construction equipment. With metro rail systems gaining prominence across India, BEML’s strong domestic manufacturing footprint and longstanding expertise in rolling stock production continue to place it at the forefront of this sector.

BEML has previously supplied rolling stock to metro networks in Delhi, Bengaluru, Kolkata, Mumbai and Jaipur, and the latest Bengaluru contract reinforces its diversified order book. Industry analysts note that the company’s established capabilities, localisation levels and cost advantages have helped it remain a preferred supplier for major metro projects.

Also Read : Corona Remedies Builds Momentum for Its Rs.655-Crore IPO With Strong Myoril Push

Government-Owned PSU Continues Its Strategic Role in Metro Expansion Projects

BEML, a ‘Schedule A’ public sector enterprise under the Ministry of Defence, remains majority-owned by the Government of India, which held a 53.86% stake as of June 30, 2025. Its strong PSU lineage and decades of engineering expertise have allowed it to play a defining role in India’s infrastructure build-out—particularly in rail and metro development.

For Bengaluru’s Phase II expansion, which includes new corridors, station upgrades and extended routes, BEML’s additional trainsets will support improved fleet availability and enhanced service frequency. The order reflects BMRCL’s continued reliance on BEML for timely and reliable deliveries of metro train configurations.

Fresh Order Comes Amid Mixed July–September Quarter Results for FY26

The Bengaluru metro contract arrives at a time when BEML’s financial performance has shown mixed signals. In the July–September quarter of FY26, the company reported a 6% year-on-year decline in net profit, which fell to ₹48 crore, compared with ₹51 crore during the same period last year.

Revenue from operations also dipped 2.4% to ₹839 crore, reflecting slower execution cycles and a soft patch across some verticals. However, despite subdued top-line growth, the company managed to maintain operational stability. EBITDA remained flat at ₹73 crore, and the operating margin saw a marginal improvement, rising to 8.7% from 8.5% a year earlier.

This slight uptick in profitability highlights the company’s ability to manage costs effectively even in challenging market conditions.

Metro and Rail Orders Expected to Support Improved Earnings in Coming Quarters

Industry experts believe that the new order from BMRCL, combined with ongoing projects across multiple cities, may help BEML achieve stronger revenue visibility in the coming quarters. The company’s rail and metro segment is often seen as a key driver of long-term growth, given the momentum of urban transit projects and the government’s continued focus on infrastructure expansion.

With several metro networks undergoing phased expansions—including Bengaluru, Delhi, Mumbai, Pune and Chennai—BEML is expected to remain an important participant in the sector’s supply chain. The company’s efforts in localisation, technology partnerships and rolling stock upgrades further support its competitive position.

BEML’s Strategic Importance Continues as India Expands Its Metro Footprint

The latest order further highlights BEML’s strategic role in India’s Make in India and Atmanirbhar Bharat initiatives, which encourage domestic manufacturing for major infrastructure projects. As Indian cities step up investments in metro rail systems to address rising urban congestion, BEML’s ability to deliver technologically advanced and cost-effective trainsets will be crucial in meeting the country’s mobility goals.

The Namma Metro Phase II expansion is expected to significantly improve the commuting experience for Bengaluru’s residents by reducing overcrowding, improving availability and increasing operational efficiency. BEML’s new trainsets will support these objectives while strengthening the company’s credentials as a reliable partner in India’s public transport modernisation.

A Strong Order Book Positions BEML for Long-Term Growth

With a robust PSU backing, diversified business portfolio and steady inflow of metro orders, BEML is well-positioned to capitalize on India’s infrastructure growth cycle. While recent financial results show some softness, the company’s expanding order book—including the latest ₹414 crore Bengaluru Metro contract—is likely to provide greater stability and earnings support.

As urban transit networks continue to grow, BEML’s strategic role in the rail and metro ecosystem is expected to strengthen further, setting the stage for improved performance in the medium to long term.

• Nifty 50
• Bank Nifty
• Sensex