Shares of Bharat Electronics (BEL) fell as much as 2.3% to the day’s low of Rs 413 on the BSE on Wednesday, even as it reported a 5% year-on-year (YoY) increase in consolidated net profit for the March quarter, aided by continued execution of defence projects and growth in operational revenue.The company posted a profit after tax of Rs 2,226 crore for Q4FY26, compared with Rs 2,127 crore in the corresponding quarter last year.Revenue from operations during the quarter rose 11% year-on-year to Rs 10,224 crore from Rs 9,150 crore in the year-ago period. Total income increased to Rs 10,335 crore from Rs 9,344 crore last year, reflecting growth of around 11%.Total expenses during the quarter increased to Rs 7,417 crore from Rs 6,477 crore in the corresponding period last year as the company accelerated production and project execution. The cost of materials consumed rose to Rs 4,794 crore from Rs 4,429 crore a year ago. Despite higher costs, BEL maintained strong profitability on the back of healthy revenue growth and stable execution across its defence electronics business.For the full financial year FY26, the company reported consolidated revenue from operations of Rs 27,610 crore, registering a 16% increase over Rs 23,769 crore in FY25. Net profit for the year rose 14% to Rs 6,062 crore from Rs 5,323 crore in the previous financial year.BEL shares: Should you buy, sell or hold?Brokerage firm Goldman Sachs maintained its "Buy" rating on Bharat Electronics with a target price of Rs 475, implying an upside of 12%. The brokerage said the company’s Q4 operational performance was broadly in line with estimates, although profit after tax missed expectations due to higher depreciation and lower other income.The international brokerage highlighted that BEL’s order book remained strong at Rs 73,900 crore, with a healthy book-to-bill ratio of 2.7x. It also noted that the company met or exceeded most of its FY26 guidance metrics. According to the brokerage, key factors to watch going forward will be FY27 order inflows, execution momentum, and the sustainability of margins.Nomura maintained a "Neutral" rating on Bharat Electronics with a target price of Rs 454 (7% upside). The brokerage said BEL delivered a steady operating performance in Q4FY26 that was broadly in line with consensus estimates, though slightly below its own expectations. Nomura added that management commentary on FY27 guidance, order inflow momentum, and margin trends will remain key factors to track.The brokerage noted that BEL currently trades at 45x FY27 estimated earnings per share (EPS) of Rs 9.3 and 39x FY28 estimated EPS of Rs 10.8. Nomura said it continues to prefer Hindustan Aeronautics as its top pick in the defence sector and maintained a "Buy" rating on the stock.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)