Bharat Dynamics LimitedQ1 FY27 Results & Financial Update

Bharat Dynamics Limited: Q1 FY27 standalone results and company financials – revenue ₹572.24 Cr, PAT ₹118.79 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: BDLPublished 20 Oct 2026Updated 20 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹572.24 CrReported Q1 FY27
Profit after tax₹118.79 CrReported Q1 FY27
EPS₹3.24Reported Q1 FY27

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Quarterly Results AnalysisExplore Bharat Dynamics Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

Bharat Dynamics Limited recorded total revenue from operations of INR 572.24 crore for the quarter ended June 30, 2026, alongside other income of INR 103.44 crore, bringing total income to INR 675.68 crore.

02

Profit before tax for the June 2026 quarter settled at INR 165.63 crore, while profit after tax stood at INR 118.79 crore, resulting in a basic and diluted earnings per share of INR 3.24 for the period.

03

Operating expenses for the quarter included material consumption costs of INR 187.90 crore and a positive inventory adjustment of INR 89.50 crore reflecting work-in-progress and finished goods movements.

04

Employee benefits expense constituted INR 136.37 crore, while finance costs remained modest at INR 0.64 crore and depreciation and amortisation expenses amounted to INR 20.25 crore.

05

Other expenses for the quarter were reported at INR 75.39 crore, while tax expenses, inclusive of deferred tax provisions, totaled INR 46.84 crore.

06

Statutory auditors Tej Raj & Pal issued an unmodified limited review conclusion while drawing attention to Note 7 concerning non-moving inventories of INR 83.27 crore outstanding for more than five years.

07

Note 6 highlights that the reconstitution of the Audit Committee could not be completed prior to board approval due to the expiration of the tenure of independent directors and vacancies governed by the Government of India.

01 · Business model

What does Bharat Dynamics do?

Bharat Dynamics Limited is a Government of India enterprise operating under the Ministry of Defence, specializing in the manufacture of guided missiles and allied defence equipment for the Indian Armed Forces.

The company's primary revenue engine stems from the production and supply of surface-to-air missiles, anti-tank guided missiles, underwater weapons, launchers, test equipment, and associated support services.

Operating through manufacturing facilities situated in locations such as Kanchanbagh in Hyderabad, the company serves institutional defence customers under long-term procurement frameworks and government contracts.

The economic model depends on multi-year defence orders, technological collaboration with premier research institutions like DRDO, and structured advances or milestone payments that support capital-intensive manufacturing cycles.

02 · Historical context

What shaped the business before this quarter

FY2025-26 Dividend Action

The Board of Directors previously recommended a final dividend of INR 0.40 per equity share for the financial year 2025-26 at their meeting held on May 28, 2026, in addition to an interim dividend of INR 4.50 per equity share.

Section 8 Subsidiary Investments

The company previously invested in Advanced Materials (Defence) Testing Foundation and Electronic Warfare (Defence) Testing Foundation as Section 8 not-for-profit companies, which are excluded from consolidation due to the absence of rights to variable returns.

03 · Financial snapshot

Current-quarter financial snapshot

MetricQ1 FY27
Revenue from operations₹572.24 Cr
Total income₹675.68 Cr
Profit before tax₹165.63 Cr
Profit after tax₹118.79 Cr
EPS₹3.24

Financial interpretation

What the reported numbers mean

Profit conversion

Profit after tax represented 20.8% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.

Pre-tax earnings

Profit before tax was equivalent to 28.9% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.

Operating revenue versus total income

Total income exceeded operating revenue by ₹103.44 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.

Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

Segment Production Deliveries

Revenue from operations of INR 572.24 crore was driven by direct sales and income from operations of INR 565.74 crore, supplemented by other operating income of INR 6.50 crore.

Non-Operating Income Support

Total income reached INR 675.68 crore, bolstered by other income of INR 103.44 crore generated during the quarter.

What drove margins

Input Costs and Inventories

Cost of materials consumed stood at INR 187.90 crore, offset by a positive change in inventories of finished goods and work-in-progress amounting to INR 89.50 crore.

Fixed and Overhead Expenses

Employee benefit outlays represented a major overhead component at INR 136.37 crore, while depreciation and amortisation added INR 20.25 crore and finance costs remained minimal at INR 0.64 crore.

05 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

Defence Production Exemption

Pursuant to Ministry of Corporate Affairs notification G.S.R. No. 463(E) dated June 5, 2015, and subsequent amendments, government companies engaged in defence production are exempt from segment reporting requirements.

06 · Strategy & new businesses

How the company is trying to change its growth mix

Testing Foundation Investments

The company maintains strategic equity investments in Advanced Materials (Defence) Testing Foundation and Electronic Warfare (Defence) Testing Foundation, registered as Section 8 companies to support specialized defence testing infrastructure.

07 · Reported developments

What changed operationally

Profitable Operations

The company reported a profit before tax of INR 165.63 crore and a net profit after tax of INR 118.79 crore for the quarter ended June 30, 2026.

08 · Pressure points & risks

What is not going smoothly

Audit Committee Quorum Vacancies

Note 6 discloses that the reconstitution of the Audit Committee could not be completed following the expiration of independent directors' tenure because the required quorum under the Companies Act and SEBI regulations was not met.

09 · Cash flow & balance sheet

Profit is one thing. Cash and funding tell another part of the story.

Customer Advances against Non-Moving Inventories

Note 7 of the financial statements discloses INR 83.27 crore of inventory non-moving for more than five years, procured against firm orders or letters of intent that were subsequently short-closed by customers.

Advance Coverage of Non-Moving Stock

Management noted that no provision for redundancy was made for the INR 83.27 crore non-moving inventory because customer advances received against those specific contracts amounted to INR 362.34 crore, exceeding the total assets acquired and expenditures incurred.

Capital allocation & funding

Low Borrowing Costs

Finance costs for the quarter were reported at INR 0.64 crore, reflecting minimal debt servicing overhead relative to the scale of operations.

10 · Beyond the numbers

What changed beyond the numbers

Reported update

Board Approval Context

In the absence of a duly constituted Audit Committee due to pending government appointments for independent directors, the Statement of Unaudited Financial Results for the quarter ended June 30, 2026, was reviewed and approved directly by the Board of Directors at its meeting held on August 14, 2026.

11 · Key Q&A

The quarter, answered directly

What does Bharat Dynamics do?

Bharat Dynamics Limited is a Government of India enterprise operating under the Ministry of Defence, specializing in the manufacture of guided missiles and allied defence equipment for the Indian Armed Forces.

What is the clearest takeaway from Q1 FY27?

Bharat Dynamics Limited recorded total revenue from operations of INR 572.24 crore for the quarter ended June 30, 2026, alongside other income of INR 103.44 crore, bringing total income to INR 675.68 crore.

What drove revenue or demand?

Revenue from operations of INR 572.24 crore was driven by direct sales and income from operations of INR 565.74 crore, supplemented by other operating income of INR 6.50 crore.

What mattered most for margins or profitability?

Cost of materials consumed stood at INR 187.90 crore, offset by a positive change in inventories of finished goods and work-in-progress amounting to INR 89.50 crore.

What changed operationally beyond the headline numbers?

The company maintains strategic equity investments in Advanced Materials (Defence) Testing Foundation and Electronic Warfare (Defence) Testing Foundation, registered as Section 8 companies to support specialized defence testing infrastructure.

What are the main pressure points disclosed for the quarter?

Note 6 discloses that the reconstitution of the Audit Committee could not be completed following the expiration of independent directors' tenure because the required quorum under the Companies Act and SEBI regulations was not met.

12 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

Starting point

Build your own next-quarter scenario

Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.

Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.

Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%

The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.

13 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Audit Committee Reconstitution: Monitor the appointment of independent directors by the Government of India to fulfill statutory requirements and reconstitute the Audit Committee.

  2. 02

    Order Execution and Delivery Milestones: Track subsequent quarterly revenue recognition against ongoing defence manufacturing contracts and missile delivery schedules.

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Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.

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