Shares of Bharat Dynamics Limited declined more than 2% in early morning trade after the defence PSU reported a weak set of financial results for the third quarter, marked by sharp year-on-year declines across profit, revenue, and operating margins.
In Q3, Bharat Dynamics reported a 50.3% year-on-year drop in net profit at ₹73 crore, compared with ₹147 crore in the same period last year. The steep fall in profitability was primarily driven by lower revenues and a significant contraction in operating margins, underscoring the challenging operating environment faced during the quarter.
Revenue from operations declined 32% year-on-year to ₹566.6 crore, down from ₹832 crore in the corresponding quarter of the previous financial year. The sharp fall in topline performance points to delays in project execution and softer order inflows, a recurring challenge for defence public sector undertakings that operate with lumpy order cycles and milestone-based deliveries.
Operating performance weakened considerably as EBITDA fell 79.5% year-on-year to ₹26 crore, compared with ₹127 crore in Q3 of the previous year. Consequently, EBITDA margin contracted sharply to 4.6% from 15.3% a year ago, highlighting pressure on cost efficiency and reduced operating leverage amid lower scale of operations.
