Earnings Review
Bharat Dynamics' Q1 net vaults on negative inventory cost
This story was originally published at 18:33 IST on 12 August 2025
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--Bharat Dynamics Apr-Jun net profit INR 183.50 mln vs INR 72.16 mln year ago
--Bharat Dynamics Apr-Jun revenue INR 2.48 bln vs INR 1.91 bln year ago
By Ketaki Patil
MUMBAI – Bharat Dynamics Ltd. reported a sharp triple-digit increase in its net profit for the June quarter due to a double-digit increase in revenue and a continued high negative charge for changes to inventory. The company's revenues grew 23% on year while expenses grew by a more modest 19%. The cost of raw materials consumed rose sharply but changes in inventory which were negative and a fall in employee costs resulted in expenses growing at a much lower rate than revenue.
The missile and allied defence equipment manufacturer's net profit rose 154% on year to INR 183.50 million. Sequentially, however, the net profit was down 93%. While the net profit was lower than the highest estimate of INR 654 million from Nuvama Wealth Management Ltd., it was higher than lowest estimate of INR 84 million from Nirmal Bang Equities Pvt. Ltd.
The state-owned company's revenue grew 30% on year to INR 2.48 billion. This was lower than the highest estimate of INR 3.05 billion from Elara Securities Pvt. Ltd. but higher than the lowest estimate of INR 2.1 billion from Nirmal Bang.
The company's other operating income rose almost five times on year to INR 168.36 million. Employee benefits expenses fell 10% on year to INR 1.32 billion while finance cost fell sharply to a mere INR 6.96 million.
Bharat Dynamics' total expenses rose almost 20% on year to INR 3.12 billion for the reporting quarter, primarily on account of a sharp increase in the other expenses, which rose almost 60% on year to INR 1.02 billion from INR 642 million. Cost of materials consumed rose almost 18% on year to INR 2.07 billion.
The company's total income for the reporting quarter rose almost 23% to INR 3.35 billion. The company's depreciation and amortisation expenses rose almost 13% on year to INR 176.61 million from INR 156.70 million.
On Tuesday, shares of Bharat Dynamics closed at INR 1,486 on the National Stock Exchange, down 1.8%, before the company announced its quarterly numbers. End
Edited by Deepshikha Bhardwaj
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