Shares of defence public sector undertaking Bharat Dynamics Limited (BDL) are poised to be in the spotlight during Tuesday's trading session following a significant order win. The company announced after market hours on Monday that it has secured a substantial contract valued at ₹2,462 crore from the Indian Army.
Details of the Major Defence Contract
In a regulatory filing, Bharat Dynamics informed the exchanges about the new order. The contract involves the supply of anti-tank guided missiles (ATGMs) and surface-to-air missiles (SAMs) to the Indian Army. The company clarified that these orders were booked after its previous update issued in mid-November 2024.
This development comes close on the heels of another major contract signed earlier in mid-November. At that time, BDL inked a deal worth ₹2,096 crore with the Ministry of Defence for supplying Invar anti-tank missiles for the Army's T-90 tanks. The back-to-back orders highlight the company's pivotal role in India's defence modernisation.
Strong Financial Performance in Q2FY26
The order win adds further momentum to the company, which recently reported robust financial results for the second quarter of the fiscal year 2025-26 (Q2FY26). On a standalone basis, Bharat Dynamics posted a 76.2% year-on-year jump in net profit, which soared to ₹215.88 crore from ₹122.53 crore in the same quarter last year.
The company's revenue from operations witnessed an even more impressive surge, growing by 110.55% to ₹1,147.03 crore, compared to ₹544.77 crore in Q2FY25. This growth was supported by increased execution of existing orders. Consequently, total expenses also rose sharply by 111% to ₹979.98 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 89.4% to ₹188 crore. However, the EBITDA margin saw a slight contraction to 16.4% from 18.1% a year ago, reflecting the scale-up in operations.
Brokerage Outlook and Growth Trajectory
Leading brokerages have maintained a positive view on Bharat Dynamics following its earnings and consistent order flow. Choice Institutional Equities highlighted that multiple high-value indigenous programs like Astra Mk-2, Akash NG, and various ATGMs are expected to move into production soon. The brokerage firm reiterated that BDL remains one of the most credible beneficiaries of India's growing missile modernisation agenda.
Motilal Oswal Financial Services expects the company to benefit from a pipeline of opportunities including emergency procurements, Quick Reaction Surface-to-Air Missile (QRSAM) systems, follow-on orders for Astra missiles from Hindustan Aeronautics Limited (HAL), and the Very Short Range Air Defence System (VSHORADS).
The brokerage projects strong growth for BDL, forecasting revenue, EBITDA, and profit after tax (PAT) to compound annually at 35%, 64%, and 51%, respectively, over the fiscal years 2025 to 2028. This optimism is backed by the company's strong order book of approximately ₹23,500 crore, established infrastructure, close collaboration with the Defence Research and Development Organisation (DRDO), and proven execution capabilities in complex missile systems.
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