BDL shares fall 4% as Q2 profit drops 15% YoY; revenue rises 45%

Shares of Bharat Dynamics Ltd (BDL) declined on Thursday after the defence PSU reported a 15.01 per cent year-on-year (YoY) decline in standalone net profit for the September quarter, despite healthy revenue growth.

The stock slumped 6.42 per cent to hit an intraday low of Rs 1,028.40 before settling 3.82 per cent lower at Rs 1,057. At this closing level, the stock was down 28.62 per cent on a year-to-date (YTD) basis.

BDL's standalone net profit fell to Rs 183.48 crore in Q2 FY27 from Rs 215.88 crore in the corresponding quarter last year. However, on a quarter-on-quarter (QoQ) basis, profit increased 54.46 per cent from Rs 118.79 crore in Q1 FY27.

Revenue from operations rose 45.08 per cent YoY to Rs 1,664.13 crore in Q2 FY27, compared with Rs 1,147.02 crore in Q2 FY26. Sequentially, revenue surged 190.81 per cent from Rs 572.24 crore in the preceding quarter.

On the expenses front, total expenditure increased to Rs 1,585.05 crore during the quarter under review from Rs 979.98 crore in the year-ago period.

Earnings per share (EPS) declined to Rs 5.01 in Q2 FY27 from Rs 5.89 in the corresponding period last year.

In its assessment, Choice Institutional Equities expects FY27–29E to mark a sharp earnings recovery as the low FY26 base normalises and multiple programmes progressively enter production, with QRSAM providing an additional growth driver as volumes scale up.

"We, therefore, believe the key change from FY26 is that BDL is moving towards a broader, multi-programme production cycle, which should reduce its dependence on the timing of any single programme and support a more sustained revenue recovery," it stated.