Bharat Dynamics shares tank over 8% after Q4 net profit declines 58% on subdued revenue growth; details here

After the opening bell on Friday, Bharat Dynamics shares dropped 8.3% to its day's low level of ₹1,175.40 during the early market hours, compared to ₹1,282.20 at the previous market close.

As per the NSE filing, Bharat Dynamics recorded a 58% fall in its consolidated net profits to ₹113.18 crore in the March quarter of the financial year ended 2025-26, compared to ₹272.77 crore in the same period of the previous fiscal year.

The consolidated financial statements also showed that the aerospace & defence company’s revenue from core operations contracted 73% year-on-year to ₹488 crore in the fourth quarter of the year ended 2025-26, compared with ₹1,800 crore in the same period a year ago.

The company’s earnings per share (EPS) also dropped to ₹3.09 apiece, from ₹7.44 per share in the same quarter of the previous fiscal year.

Bharat Dynamics also disclosed that the company holds old inventory worth ₹83.27 crore, which has not been moving for the last five years, based on the company’s order book and letters of intent short closed by customers.

For these old inventories, the company received advances of ₹362.34 crore from the customers. However, they also said that no prevision for redundancy was considered necessary for the old inventory in stock.

What do analysts say?

Analysts from the leading investment firm, Goldman Sachs, said that Bharat Dynamics missed the execution expectations for the seventh consecutive year in a row as of the results for the fiscal year ended 2025-26.

The experts also highlighted that the company was witnessing domestic supply chain issues and component shortages in the market due to supply from overseas suppliers.

“As a result, contrary to other defence peers under coverage, FY26 revenue declined 27% YoY. Furthermore, inventory surged 75% YoY at INR 46.3bn (>2x FY26 revenue) mainly due to finished goods waiting for delivery,” said Goldman Sachs analysts in a note.

Looking ahead, the expert anticipates strong order inflow in the financial year ending 2026-27 at ₹140 billion, while concerns remain on how the company executes the orders.

Bharat Dynamics share price trend

Bharat Dynamics shares closed 3.59% lower at ₹1,282.20 after Wednesday’s trading session, compared to ₹1,329.90 at the previous market close, according to the NSE data. The company announced its Q4 results and dividend update on Thursday, May 28.

The stock markets remained closed for operations on Thursday on account of the scheduled holiday for Bakri Id (Eid al-Adha) on May 28.

Shares of Bharat Dynamics (BDL) have delivered more than 621% returns on their investments in the last five years, and over 145% gains in the last three years, according to the exchange data.

However, the company’s stock has lost 34% in the last one year and 13% so far in 2026. BDL shares were down 7.5% in the last one month, and were trading 1.8% lower in the last five trading sessions.

The company’s market capitalisation (m-cap) was at ₹47,246.24 crore as of Wednesday’s market close.