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Informist, Tuesday, Aug. 12, 2025

By Arundathi A R

MUMBAI -  State-owned defence major Bharat Dynamics Ltd. is expected to post robust year-on-year growth in its bottom line and top line for the June quarter as the supply chain issues the company was facing have been resolved, according to brokerages tracking the company. However, analysts are divided on the company's earnings before interest, tax, depreciation, and amortisation, with some expecting the company to report an EBITDA loss while others project a positive EBITDA.

Only three estimates from brokerages are available for the company's June quarter earnings. Nuvama Wealth Management Ltd. has the highest estimate for the company's net profit at INR 654 million. On other hand, Nirmal Bang Equities Pvt. Ltd. has the lowest estimate for the company's net profit at INR 84 million. This range implies an on-year profit growth of 16% at the lower end and a nine-fold growth at the higher end. Bharat Dynamics had reported a net profit of INR 72.16 million in the year-ago quarter.

The ammunitions and missile systems manufacturer's net sales are estimated at 3.05 billion by Elara Securities Pvt. Ltd. and at INR 2.1 billion by Nirmal Bang. This range implies a growth of almost 10% to 60% on year. The company had reported net sales of INR 1.91 billion in the year-ago quarter.

While Nuvama Wealth expects the company to report an EBITDA of INR 232 million, Elara Securities and Nirmal Bang estimate the company to report an EBITDA loss at INR 289 million and INR 555 million, respectively. Bharat Dynamics is expected to report a net profit in the June quarter despite the possibility of posting a loss at the EBITDA level. It may report a profit largely due to interest income from advance payment it has got on some orders from clients, an analyst with a domestic brokerage said.

At 1242 IST, shares of the company traded at INR 1,490.30 on the National Stock Exchange, down 1.6% . The stock is down 22% since the company reported its March quarter earnings. Of the six brokerage reports on the company available with Informist, three have a 'hold' recommendation on the stock at an average target price of INR 1,724, two have a ‘buy' recommendation and one has a ‘sell' recommendation. 

The company will report its earnings for the June quarter Tuesday. The execution pace of the projects is the key factor to monitor, according to Nuvama Wealth. 

Following are the Apr-Jun earnings estimates for Bharat Dynamics based on reports from three brokerage firms in descending order by the estimate of net profit (in INR million):
 

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Edited by Vandana Hingorani

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