Bharat Dynamics Limited (BDL), a major defence public sector enterprise of the Ministry of Defence, registered strong financial and operational performance during the first quarter (Q1) of FY2026, ended June 30, 2025. The company has shown a spectacular turnaround in profitability as its net profit jumped by more than 154% on a year-on-year basis to ₹18.35 crore, from a considerable ₹7.22 crore recorded in the corresponding quarter of last year.
Operating revenue recorded a strong growth of almost 30% at ₹247.93 crore from ₹191.17 crore in Q1 FY25. Although this is this year-over-year growth, the company witnessed a steep sequential fall from the earlier quarter’s revenue of around ₹1,770.98 crore, tracing the cyclical pattern of execution of high defence orders. The overall income for the quarter, including other income, was ₹334.79 crore, aided by other income of ₹86.86 crore.
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Expenses increased
On the cost side, BDL’s overall costs increased to ₹311.66 crore from ₹260.32 crore in the corresponding year-ago quarter, with materials consumed cost at ₹206.53 crore and employee benefits expenses at ₹131.97 crore. BDL posted an EBITDA loss of ₹45 crore in Q1 FY26, better than the ₹52 crore EBITDA loss posted in Q1 FY25, indicating operational cost-saving benefits amidst continued investment in growth.
Strong orderbook
BDL’s financials also reflect the natural quarter-to-quarter volatility, given their timing of having heavy defence orders, which are usually highest in the fourth quarter. BDL received a significant order of ₹809 crore from Armoured Vehicles Nigam Limited for the supply of anti-tank guided missiles (ATGMs) on a three-year span, highlighting healthy order inflows and faith in BDL’s strength.
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Impact on shares
The shares of the company were under some price pressure on the results announcement date, declining by about 2%, driven by profit booking and general market forces, despite the strong growth in profit. The market capitalization of BDL as of August 2025 is approximately ₹54,434 crore, indicating investors’ faith in the company’s strategic position in India’s defence manufacturing industry.
Strong presence in defence sector
BDL’s robust Q1 performance highlights its critical role in India’s indigenous defence manufacturing, which has crossed ₹1.5 lakh crore per annum, a milestone that reflects the country’s enhanced self-sufficiency in defence technology and production. The company continues to ride the government thrust for local defence manufacture and increasing demand from the Indian Armed Forces for guided missile systems and ancillary equipment.
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Overall, BDL’s Q1 FY26 result reflects a large year-on-year profit rise and revenue growth based on robust order book momentum and operational improvement. Notwithstanding seasonal revenue swings, the company’s strategic positioning and continuing large orders provide a positive future outlook for growth in India’s defence industry with BDL at the forefront of the country’s defence capabilities and indigenisation drives.
