Stock Market Today: Bharat Dynamics’ (BDL) share price gained more than 5% in the morning trade on Wednesday, post Q1 results that were declared after the stock market trading hours on Tuesday.
The defence sector state-run Bharat Dynamics reported a sharp 154.37% year-on-year (YoY) increase in net profit for the June 2025 quarter. Profit for the April-June 2025 quarter was at ₹18.35 crore, up from ₹7.21 crore in the same quarter last year.
Bharat Dynamics’ revenues from operations stood at ₹247.92 crore in Q1 FY26, up 29.69% from ₹191.16 crore during the same quarter last year.
Analysts’ views on Bharat Dynamics Q1 Results
Bharat Dynamics’ strong performance during the April-June quarter was attributed to a strong order book and execution, though the quarter remains seasonally weak.
The earnings before interest, tax, depreciation, and amortisation, as per Motilal Oswal Financial Services estimates, remained negative. However, the higher other income lifted the net profits.
Nuvama Institutional Equities said that Bharat Dynamics reported subdued profitability, overshadowing robust execution, which surged 30% YoY during Q1FY26.
Bharat Dynamics stock outlook and analyst recommendations
With a strong order book of nearly ₹23300 crore, Motilal Oswal Financial Services expects execution to scale up further in the coming quarters, particularly from Akash and Astra Mk1, MRSAM, and armament projects. It expects BDL to benefit from a strong prospect pipeline of nearly ₹50,000 crore and an emergency procurement program.
A strong backlog of around ₹22,800 crore (7 times FY25 sales), as per Nuvama, coupled with ₹42,800 crore of pipeline, lends earnings visibility over the next four–five years. “Timely/profitable execution along with huge export optionality from friendly countries remains a key catalyst,” as per Nuvama. It retained a ‘Buy’ rating with a target price of ₹2250.
MOFSL had initiated coverage on BDL in July ’25 with a neutral recommendation due to high valuations of 52 times and 38 times FY27 and FY28 estimated earnings per share. Since then, the stock has come down by 25% and is now trading at reasonable valuations of 39 times and 29 times FY27 and FY28 estimated earnings per share (EPS).
MOFS has maintained its estimates and expects execution and margins to scale up in the coming quarters. It upgrades the stock to ‘Buy’ from ‘Neutral’ with a target price of ₹1,900.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
