Shares of Bharat Dynamics Limited (BDL) dropped over 5% in morning trade following the release of its Q4 FY25 financial results, which reflected a mixed performance. As of 9:18 AM, the shares were trading 3.51% lower at Rs 1,891.30.
The state-owned defense company reported a 5.5% year-on-year (YoY) decline in net profit, with earnings falling to ₹272.7 crore, compared to ₹288.8 crore in the corresponding quarter of the previous year.
Despite the fall in profit, BDL recorded a significant jump in revenue, with total income rising to ₹1,777 crore, more than double the ₹854 crore posted in Q4 FY24. This represents a YoY revenue growth of approximately 108.07%.
However, earnings before interest, taxes, depreciation, and amortization (EBITDA) declined to ₹299 crore, down 5.5% from ₹316.3 crore in the same period last year. The company also experienced a sharp contraction in its operating margin, which fell to 16.83%, compared to 37.04% a year ago.
In the meantime, Nuvama Institutional Equities has reaffirmed a Buy rating on Bharat Dynamics Limited (BDL), raising its target price to ₹2,250 from ₹1,650. The bullish outlook follows a stellar Q4FY25 performance and a strong order book that ensures visibility for the next few years.
In Q4FY25, BDL posted a 108% year-on-year jump in revenue, highlighting its operational strength and momentum heading into FY26. The company secured ₹67 billion in new orders in FY25, pushing its total backlog to ₹228 billion — nearly seven times its annual revenue, underlining strong future prospects.
Nuvama projects a 60% CAGR in revenue between FY25 and FY27, supported by healthy operating margins of 22–23%, improved component supply, and increased backward integration. The brokerage has also raised its FY27 EPS estimate by 6% and upgraded the valuation multiple to 45x P/E on an estimated EPS of ₹50.1.
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