Target: ₹1,817
CMP: ₹1,604.60
Bharat Dynamics Ltd (BDL), a Government of India enterprise operating under the Ministry of Defence, specializes in manufacturing Surface to Air Missiles, Air to Air Missiles, Anti-Tank Guided Missiles, Torpedoes, and related Defence Equipment.
As of March 31, 2025, BDL’s order book was reported at ₹22,700 crore, which is 6.8 times its consolidated revenue for FY25. The company has faced operational setbacks in the last two years primarily due to supply chain challenges. However, these issues are expected to ease, leading to improved execution in FY26.
BDL stands to benefit from a total addressable market estimated at ₹50,000 crore, alongside an emergency procurement programme valued at approximately ₹40,000 crore. The company is positioned to pursue multiple missile procurement initiatives across new naval, airborne, and army platforms, aiming to secure orders ranging between ₹20,000 and ₹30,000 crore.
To enhance its production capabilities, BDL has established an integrated radio frequency (RF) seeker facility at its Kanchanbagh unit, enabling in-house production and testing. This strategic move reduces dependence on expensive imports and adds value to its offerings.
In Q1FY26, BDL reported sales of ₹248 crore, reflecting a 30 percent increase. EBITDA margins improved from 27 percent to 18 percent, while profit after tax (PAT) surged by 157.1 percent, reaching ₹18 crore. As of the current market price (CMP), BDL is trading at forecasted P/E multiples of 58.8x for FY26 and 41.8x for FY27, according to Bloomberg consensus estimates.
Key risk factors include potential declines in the Indian defence budget, the possibility of contract terminations, and ongoing supply chain issues.
Published on September 16, 2025
