Bharat Dynamics Q4 FY25 Results: Strong Revenue Surge but Profit Under Pressure
📝 Introduction
Bharat Dynamics Ltd. (BDL), a leading state-run defense PSU, reported its Q4 FY25 results, showcasing an impressive revenue jump of over 100% year-on-year. However, the stellar top-line growth was overshadowed by a decline in net profit and margin contraction, triggering a negative market reaction. Here’s a detailed breakdown of the quarterly performance, financial highlights, key metrics, peer comparison, and strategic developments.
💡 Financial Highlights – Q4 FY25
| Metric | Q4 FY25 | Q4 FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹1,777 Cr | ₹854 Cr | 108.10% |
| Operating Profit (EBIT) | ₹299 Cr | ₹316.3 Cr | -5.50% |
| Net Profit | ₹272.7 Cr | ₹288.8 Cr | -5.50% |
| EBITDA Margin | 16.83% | 37.04% | ↓ 2021 bps |
| EPS (Rs) | 7.44 | 7.88 | -5.60% |
💸 Dividend Announcement
- Final Dividend: ₹0.65 per equity share (Face Value ₹5)
- Interim Dividend (Feb 2025): ₹4 per share
- Total Dividend for FY25: ₹4.65 per share
This final dividend is subject to shareholder approval.
📈 Key Financial Metrics
Quarter-on-Quarter (QoQ) Comparison
| Metric | Q4 FY25 | Q3 FY25 | QoQ Growth |
|---|---|---|---|
| Revenue | ₹1,777 Cr | ₹832 Cr | 113.60% |
| Operating Profit | ₹299 Cr | ₹127 Cr | 135.40% |
| Net Profit | ₹273 Cr | ₹147 Cr | 85.70% |
| EPS (Rs) | 7.44 | 4.01 | 85.50% |
Year-on-Year (YoY) Comparison
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹1,777 Cr | ₹854 Cr | 108.10% |
| Operating Profit | ₹299 Cr | ₹316 Cr | -5.50% |
| Net Profit | ₹273 Cr | ₹289 Cr | -5.50% |
📊 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 |
|---|---|---|---|
| Operating Margin (%) | 16.80% | 15.30% | 37.00% |
| Net Profit Margin (%) | 15.40% | 17.70% | 33.90% |
| EPS (Rs) | 7.44 | 4.01 | 7.88 |
🏢 Peer Comparison (As of 31 May 2025)
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | CMP / BV | ROE % | ROCE % | 52w High Rs. | 52w Low Rs. |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Hind.Aeronautics | 4974.1 | 332655.37 | 39.79 | 9.51 | 26.07 | 33.87 | 5675 | 3045.95 |
| 2 | Bharat Electron | 384.6 | 281134.09 | 52.83 | 14.08 | 29.32 | 38.99 | 393.55 | 230 |
| 3 | Bharat Dynamics | 2015.5 | 73880.67 | 134.41 | 18.43 | 14.38 | 19.65 | 2096.6 | 890 |
| 4 | Garden Reach Sh. | 3003.2 | 34402.26 | 65.23 | 16.55 | 28.11 | 37.28 | 3147 | 1148.1 |
| 5 | Zen Technologies | 2139.8 | 19320.33 | 68.94 | 11.36 | 26.08 | 36.71 | 2627.95 | 893.8 |
| 6 | Data Pattern | 2848.2 | 15945.35 | 71.89 | 10.57 | 15.66 | 21.63 | 3655 | 1350.5 |
| 7 | Astra Microwave | 1095.4 | 10400.28 | 67.75 | 9.47 | 14.87 | 19.14 | 1184.9 | 584.2 |
🧠 Strategic Developments
- 🧾 Defence Deal Buzz: Market speculation around a ₹2,000–₹3,000 Cr order for Invar missiles surfaced. BDL clarified it cannot comment due to confidentiality under national security.
- 🛠 Capex & R&D: While specific capex figures were not disclosed, management continues to emphasize indigenous manufacturing and strengthening order book from Ministry of Defence.
✅ Positives & 🚫 Negatives This Quarter
✅ Positives
- Revenue growth > 100% YoY, indicating strong order execution.
- Healthy QoQ profit growth despite margin pressure.
- Ongoing defense sector tailwinds and government order pipeline.
- Dividend payout maintains shareholder returns.
🚫 Negatives
- EBITDA & Net Profit down YoY despite revenue rise.
- Significant margin compression signals rising input or operating costs.
📉 Market Reaction & Street View
- Stock Movement: BDL dropped over 4% intraday post results due to profit and margin miss.
- Investor Sentiment: Turned cautious despite revenue beat.
- Brokerage Views:
- Motilal Oswal: “Positive long-term view; near-term margin pressure concern.” (Target ₹2,150)
- ICICI Securities: “Buy with Target ₹2,100 citing robust order book and FY26 growth.”
🔮 Final Outlook
While Bharat Dynamics posted outstanding revenue growth in Q4 FY25, profitability pressures and reduced margins dampened overall investor enthusiasm. However, the long-term fundamentals remain strong, supported by a steady defense pipeline, Make in India push, and expanding capabilities. If margins stabilize, BDL could remain a high-potential stock in the defense sector.
🔗 External Links
For detailed financials and official updates, visit: Bharat Dynamics Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions. Read the Disclaimer Page for more details.