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Informist, Wednesday, Aug. 12, 2026

 

By Afra Abubacker

 

NEW DELHI – Bharat Dynamics Ltd. is expected to report a sharp rise in its earnings for the June quarter, largely due to an execution spillover from projects deferred from the March quarter and a low base a year ago, according to analysts. However, on a sequential basis, both the top line and bottom line are expected to decline amid seasonal weakness. 

 

The ammunition and missile systems manufacturer's standalone net profit for the June quarter is expected to surge over 185% on year to INR 524.6 million, according to an average of estimates from five brokerages. The highest estimate for net profit is INR 832 million from Motilal Oswal Financial Services Ltd., and the lowest is INR 205 million from ICICI Securities Ltd.

 

The company's revenue for the quarter is expected to rise over 52% on year to INR 3.78 billion, according to the average of estimates. The highest estimate for revenue is INR 7.10 billion from Elara Securities (India) Pvt Ltd., and the lowest is INR 2.82 billion from ICICI Securities Ltd.

 

However, on a sequential basis, revenue and net profit are expected to decline over 21% and nearly 55%, respectively, according to the average of estimates. For the March quarter, Bharat Dynamics reported a net profit of INR 1.16 billion on revenue of INR 4.80 billion. 

 

According to brokerages, Bharat Dynamics has an order backlog of around INR 260 billion and had received orders worth INR 13.5 billion during the quarter. "Within the defence space, Bharat Dynamics sales may skyrocket 2.8x YoY on execution spillover from Q4FY26," Elara Securities said. However, other brokerages are not as optimistic as Elara and expect the poor execution pace of the company to weigh on its earnings. 

 

Though order inflows have remained robust across the defence sector, execution has been uneven across companies, 360 ONE Capital Markets said. The brokerage highlighted the severity of execution backlogs by citing the case of Hindustan Aeronautics Ltd., which secured the largest order book in the sector but has struggled with execution.

 

360 ONE also pointed out that Bharat Dynamics has delivered "sluggish execution" over the past several years and is likely to report a loss of 16% in earnings before interest, tax, depreciation, and amortisation margin for the June quarter. "BDL's recovery hinges on improved execution run-rate and margin normalisation," Nuvama Institutional Equities said. 

 

Nuvama said Bharat Dynamics and Hindustan Aeronautics remain more exposed in the sector due to complex programme execution and supply-chain dependencies. In the defence sector, brokerages' top picks are Solar Industries India Ltd. and Bharat Electronics Ltd. due to their operational efficiencies, shorter execution cycles, and higher localisation benefits. 

 

Nuvama expects only modest revenue growth of 15% on year and a negative EBITA margin of 7% due to seasonal weakness. ICICI Securities also expects the June quarter to remain seasonally weak for defence public sector companies. The brokerage said the company may post an EBITDA loss of INR 500 million, but the net profit could remain positive because of other income.

 

Bharat Dynamics will announce its June quarter results Friday. At 1309 IST, the company's shares were up 0.5% at INR 1,313.8 on the National Stock Exchange. The shares have risen over 9% since the company reported its March quarter results.

 

Of the seven brokerage reports on the company available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 1,322. This is nearly 1% higher than the current market price. Two brokerages have a "hold" rating on the stock, and two have a "sell" rating on the stock.

 

Following are the June quarter earnings estimates for Bharat Dynamics from five brokerages in descending order of the estimate of net profit in INR million:

 

Brokerage	Net sales	Net profit	EBITDA
Motilal Oswal Financial Services Ltd.	3,176	832	476
Elara Securities (India) Pvt. Ltd.	7,098	784	343
360 ONE Capital Market Pvt. Ltd.	2,950	424	--
Nuvama Wealth Management Ltd.	2,851	378	--
ICICI Securities Ltd.	2,823	205	(500)
Average	3,779.6	524.6	--

 

End

 

Edited by Himanshi Gupta

 

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