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.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
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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
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.
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.
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.
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.
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.
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.
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
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.
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
| Metric | Q1 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 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.
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.
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
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.
Total income reached INR 675.68 crore, bolstered by other income of INR 103.44 crore generated during the quarter.
What drove margins
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.
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
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
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
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
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.
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.
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
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?
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13 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Audit Committee Reconstitution: Monitor the appointment of independent directors by the Government of India to fulfill statutory requirements and reconstitute the Audit Committee.
- 02
Order Execution and Delivery Milestones: Track subsequent quarterly revenue recognition against ongoing defence manufacturing contracts and missile delivery schedules.
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