Bharat Dynamics Limited (BDL)
Mid CapIndustrials stocks · Mid cap · NSE
Bharat Dynamics Limited (BDL) is a multi-product, multi-location, multi-customer weapon system integrator for the Indian Armed Forces. A Government of India Enterprise, BDL focuses on indigenous development and production of state-of-the-art modern weapon systems, including missiles and torpedoes, with over 80-90% indigenization levels for major projects. It also exports to friendly foreign countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +131% YoY · PAT +561% YoY · margin expansion · +19% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹572 Cr | +130.7% | +19.2% |
| EBITDA | ₹83 Cr | +284.4% | +50.9% |
| Operating margin | 15.0% | +3300 bps | +300 bps |
| PAT | ₹119 Cr | +561.1% | +5.3% |
| PAT margin | 20.8% | +1354 bps | -274 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
BDL reported a significant 27% YoY decline in revenue and a 23.5% drop in PAT for FY26, alongside a sharp 52.7% fall in EBITDA. This occurred despite a 14.7% increase in the total order book to INR 26,176 Cr and new orders of INR 5,909 Cr.
The substantial decline in revenue and profitability for FY26 raises concerns about execution capabilities and operational efficiency, especially given the healthy growth in the order book. While the order book provides future visibility, the inability to convert it into revenue and maintain margins is a red flag. The worsening inventory days further indicates potential working capital issues.
Order Pipeline
Management indicates an order pipeline of approximately INR 15,000 Crore for the current fiscal year.
Exports
The company is exporting its products to Friendly Foreign Countries.
Indigenization Focus
Focus on synergizing strengths of DPSUs, DRDO, Private Defence Industry to develop state-of-the-art Modern Weapon Systems for 'Atmanirbhar Bharat'.
Armed Forces Demand
Committed to meet the requirements of all three Armed Forces.
Domestic Defence Demand
Committed to meet the requirements of all three Armed Forces, ensuring consistent domestic demand.
High Indigenization
All BDL major projects have an Indigenization level of more than 80%-90%, aligning with national self-reliance goals.
Export Potential
Exporting products to Friendly Foreign Countries provides avenues for revenue diversification.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Industrial companies like BDL often have project-based revenues and lumpy execution cycles. Annual comparisons provide a more stable view of operational performance and order book conversion, smoothing out short-term variations.
Order Book
Total Order Book as on 31st March 2026 stood at INR 26,176 Crore, up from INR 22,814 Crore on 1st April 2025.
New Orders
New Orders received in FY26 were INR 5,909 Crore.
Revenue from Operations
Revenue from Operations declined 27% YoY to INR 2,441.79 Crore in FY26 from INR 3,345.05 Crore in FY25.
Value of Production
Value of Production decreased 15% YoY to INR 3,214.85 Crore in FY26 from INR 3,766.91 Crore in FY25.
Global Leadership Ambition
Relentlessly striving to become a global leader in Defence Weapon Systems.
Strategic Collaboration
Focus on synergizing strengths of DPSUs, DRDO, Private Defence Industry, MSMEs, and Start-ups to develop modern weapon systems.
Atmanirbhar Bharat
Working towards 'Viksit Bharat' by making Bharat truly 'Atmanirbhar' in defence.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book Conversion | Order book grew 14.7% to INR 26,176 Cr, but revenue declined 27%. | Improved execution and conversion of the strong order book into revenue. |
| Profitability Margins | EBITDA Margin at 9.1% (down from 14.1%). | Reversal of EBITDA margin contraction and sustained PAT margin. |
| Working Capital Management | Inventory Days worsened to 691 days; Trade Receivables Days improved to 109 days. | Reduction in inventory holding period and efficient working capital cycle. |
| New Order Inflow | INR 5,909 Cr in FY26, with INR 15,000 Cr pipeline. | Continued strong order inflows and conversion of pipeline into firm orders. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
46NeutralSMA20 +5.1% / mo · MACD −
Technical chart
BDLdaily · 1Y · AUTO-2.0%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 39.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~4.8% over last month) — short-term momentum positive.
- RSI(14) at 39 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 24% off 52W high · 16% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 3.5% of the 30-week proxy.
- The 30-week proxy changed -1.2% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 6/10 to the score.
Main drags
- Fair-value margin of safety is negative at -182.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 60th percentile within Industrials. Main check: results consistency is weak at 31/100.
Healthy Trust Lite: Promoter holding is 74.9%. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 60th pctile, median 68 · Mid: 39th pctile, median 76
27 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2%.
- ▸7 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -5.5%.
- ▸OPM spread across recent quarters is 36%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 88.30
- P/B
- 10.82
- EV/EBITDA
- 106.74
- Market Cap
- 46004.00Cr
Profitability
- ROE
- 10.20%
- ROCE
- 13.80%
- ROA
- 3.65%
- Dividend Y
- 0.39%
Growth (CAGR)
- Revenue 5Y
- 5.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- -1.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 117.33×
- Altman Z
- 3.54
- Book Value
- 116.00
Cash Flow
- FCF Yield
- 2.01%
- FCF Positive Y
- 7/5
- OCF
- 604.00 Cr
- EPS TTM
- 14.21
Shareholding
- Promoter Hold
- 74.93%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 30%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.