Bharat Dynamics shares jump 7% after Q2 results; check outlook and target

Bharat Dynamics shares rose 7 per cent after it reported a jump in its profit in the second quarter of the current financial year

Shares of Bharat Dynamics Ltd. rose over 7 per cent on Friday as analysts remained bullish on the stock after it reported a jump in its profit in the second quarter of the current financial year (Q2FY26).

 

The aerospace and defence firm's stock rose as much as 7.31 per cent during the day to ₹1,628.8 per share, the biggest intraday rise since August 13 this year. The Bharat Dynamics stock pared gains to trade 6.3 per cent higher at ₹1,614 apiece, compared to a 0.12 per cent decline in Nifty 50 as of 11:10 AM. 

 

Shares of the company snapped a two-day fall and currently trade at 11 times the average 30-day trading volume, according to Bloomberg. The counter has risen 43 per cent so far this year, compared to a 9 per cent advance in the benchmark Nifty 50. Bharat Dynamics has a total market capitalisation of ₹58,789.29 crore.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Bharat Dynamics Q2 results 

Bharat Dynamics reported a sharp improvement in performance for Q2 FY26, with standalone net profit rising 76.2 per cent to ₹215.88 crore, supported by a 114.2 per cent jump in revenue from operations to ₹1,147.08 crore compared with Q2 FY24.

 

Profit before tax increased 72.8 per cent year-on-year (Y-o-Y) to ₹287.61 crore. Total expenses rose 111.05 per cent to ₹979.98 crore, driven by a 272.18 per cent surge in material costs to ₹781.66 crore. Employee expenses grew 14.42 per cent to ₹162.38 crore, while finance costs climbed 83.56 per cent to ₹1.34 crore.

 

For the first half of FY26, standalone net profit grew 80.5 per cent to ₹234.23 crore, with revenue from operations rising 90.6 per cent to ₹1,378.17 crore versus H1 FY24.

 

The company also signed a ₹2,095.70 crore contract with the Ministry of Defence to supply Invar anti-tank missiles to the Indian Army, with execution over three years.

Analysts on Bharat Dynamics earnings

Choice Broking said Bharat Dynamics posted a robust Q2 FY26, with revenue rising far ahead of expectations. The strong performance was driven by faster execution across missile programmes and a favourable delivery schedule, reflecting the company’s improved operational strength and supply-chain efficiency following recent modernisation, it said. 

 

The brokerage added that several major indigenous programmes, including Astra Mk-2, Akash NG and ATGM, are likely to enter production, positioning BDL as a key beneficiary of India’s expanding missile modernisation efforts.

 

Motilal Oswal said it expects revenue and Ebitda to grow at a 35 per cent and 64 per cent CAGR, respectively, over FY25-28, supported by a sharp pickup in execution as supply-chain constraints ease. The brokerage anticipates margins to stay firm and sees further improvement in the coming quarters. It maintained its 'Buy' rating with a revised target price of ₹2,000.