Bharat Dynamics Ltd (BDL), the state-owned defence PSU, saw its shares jump 3.2% to ₹1,534 on August 13, 2025, after reporting a stellar Q1FY26 performance. The company’s Profit After Tax (PAT) surged 154% year-on-year to ₹18.35 crore, up from ₹7.21 crore in Q1FY25, driven by strong operational momentum and easing supply chain constraints.
Q1FY26 Highlights
| Metric | Q1FY26 | Q1FY25 | YoY Change |
|---|---|---|---|
| PAT | ₹18.35 crore | ₹7.21 crore | +154% |
| Revenue from Operations | ₹231.09 crore | ₹187.77 crore | +23.07% |
| Total Income | ₹334.79 crore | ₹271.55 crore | +23.29% |
| Total Expenses | ₹311.66 crore | ₹260.31 crore | +19.72% |
Despite rising costs, BDL delivered robust profit growth, reflecting improved execution and margin resilience.
What Are Brokerages Saying?
Nuvama: Buy | Target ₹2,250
- Projects 51% revenue CAGR and 66% EPS CAGR over FY25–28
- Operating margins expected to stay in the 23–23.5% range
- Assigns 45x P/E multiple on FY27E EPS of ₹50.1
- Notes easing import constraints and strong growth visibility
Motilal Oswal: Buy | Target ₹1,900
- Upgraded from Neutral to Buy
- Highlights BDL’s order book of ₹23,300 crore and prospect pipeline of ₹50,000 crore
- Forecasts EBITDA margin improvement from 23.8% (FY26) to 25.5% (FY28)
- Sees valuation at 39x FY27E EPS and 29x FY28E EPS
Should You Buy BDL Now?
Reasons to Consider Buying
- Strong Q1 performance and margin expansion
- Large order book and pipeline ensure revenue visibility
- Easing supply chain issues post-global disruptions
- Government push for defence indigenization and exports
Risks to Watch
- High valuation multiples (39x–45x forward P/E)
- Execution delays in defence contracts
- Dependency on geopolitical factors for imports and exports
Verdict
BDL’s Q1 results signal strong operational recovery and long-term growth potential. With solid fundamentals, a robust order book, and favorable brokerage outlooks, the stock presents a compelling case for long-term investors. However, given its premium valuation, short-term investors may prefer to wait for a better entry point or technical confirmation.
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