Here's why Bharat Dynamics shares were under pressure on May 28; details

Bharat Dynamics shares declined as investors booked profit in the stock after mixed Q4 results.

Bharat Dynamics share price: Defence company Bharat Dynamics shares were under pressure on Wednesday, May 28, 2025, with the share dropping 5.90 per cent to hit an intraday low of ₹1,844.10 per share. 

 

At 11:46 AM, Bharat Dynamics share was trading 2.36 per cent lower at ₹1,913.60 per share. In comparison, BSE Sensex was trading 0.28 per cent lower at 81,324.55 level.

Why were Bharat Dynamics shares under pressure today?

Bharat Dynamics shares dropped in trade today after investors booked profit in the stock after mixed March quarter of financial year 2025 (Q4FY25).

 

Bharat Dynamics profit, or bottomline, dropped 5.5 per cent Y-o-Y to ₹273 crore from ₹289 crore a year ago.

 

 

However, the company’s topline, or revenue from operations, zoomed 108 per cent Y-o-Y to ₹1,777 crore in Q4FY25, from ₹854 crore in Q4FY24. 

 

At the operating front, Bharat Dynamics earnings before interest, tax, depreciation and amortisation (Ebitda) fell 5.5 per cent year-on-year (Y-o-Y) to ₹298.96 crore in Q4FY25, from ₹316.4 crore in the same quarter previous fiscal year (Q4FY24).

 

Ebitda margin, too, contracted. It squeezed 2,020 basis points (bps) to 16.8 per cent in Q4FY25, as against 37 per cent in Q4FY24.

 

Bharat Dynamics dividend

The Board of Directors of the company have recommended a final Dividend of ₹0.65 per share (face value of ₹5 each) for the year ended March 31, 2025. 

 

“This dividend upon approval by the shareholders at the ensuing Annual General Meeting(AGM) will be paid within 30 days from the date of AGM,” the company said.

Nuvama on Bharat Dynamics Q4 results

According to analysts at Nuvama Institutional Equities, Bharat Dynamics (BDL) delivered a robust Q4FY25 performance, with top-line growth of 108 per cent Y-o-Y, setting a strong foundation for continued momentum into FY26. Order inflows for FY25 stood at approximately ₹6,700 crore, taking the total order backlog to ₹22,800 crore—about 7x FY25 revenue—offering solid visibility over the next 3–4 years. However, analysts believe timely execution will be critical to sustaining growth going forward.

 

Thus, Nuvama maintained its ‘Buy’ rating, factoring in a ~60 per cent revenue CAGR over FY25–27E and operating margins of 22–23 per cent, supported by backward integration and easing of supply-side constraints—particularly in critical imports like chips and warheads—which had hampered execution in earlier quarters (with notable recovery in H2FY25). 

 

Analysts also revised their FY27E EPS upward by 6 per cent and assigned a higher valuation multiple of 45x (up from 35x) on the revised EPS estimate of ₹50.1, arriving at a new target price of ₹2,250 (previously ₹1,650).

About Bharat Dynamics

Headquartered in Hyderabad, Bharat Dynamics was established on 16 July 1970 as a Public Sector Undertaking under the Ministry of Defence, Government of India. Conceived as the manufacturing hub for guided missile systems and allied equipment for the Indian Armed Forces, Bharat Dynamics has since evolved into a critical pillar of India’s defence infrastructure. 

 

Over the decades, it has collaborated extensively with the Defence Research and Development Organisation (DRDO) and foreign Original Equipment Manufacturers (OEMs) to supply a wide range of missiles and associated systems. 

 

The company now stands among the few global players equipped with state-of-the-art facilities for the production of guided missiles, underwater weapons, airborne defence systems, and more. It also provides life cycle support, refurbishment, and life extension services for vintage missile systems.

 

BDL has transitioned from a missile manufacturer to a comprehensive Weapon System Integrator, offering end-to-end solutions to the Indian Armed Forces. With four operational manufacturing units—three in Telangana (Hyderabad, Bhanur, and Ibrahimpatnam) and one in Visakhapatnam, Andhra Pradesh—the company is expanding its footprint with a new facility under development in Amravati, Maharashtra. 

 

In partnership with DRDO, BDL produces a variety of indigenous systems, including the Akash Surface-to-Air Missile and heavyweight and lightweight torpedoes, the latter of which are also being exported. 

 

Looking ahead, BDL is set to manufacture the cutting-edge ‘Beyond Visual Range’ Astra Weapon System, further strengthening its position as a key contributor to India’s defence self-reliance.