Bharat Dynamics Shares Drop After Q4 Results Disappoint

Bharat Dynamics Ltd. (BDL) shares fell 5% to ₹1,844 on May 28 after the company posted weaker-than-expected Q4 results for FY25. Key Highlights from Q4FY25: - Net Profit: Down 6% YoY to ₹272 crore (vs. ₹288 crore in Q4FY24) 🔻 - Revenue: Jumped 112% YoY to ₹1,800 crore — more than doubled. - EBITDA (Operating Profit): Up 4% YoY to ₹322 crore - Margins: Fell sharply to 18% (down 18.7 percentage points YoY) Why Did the Stock Fall? Even though revenue soared, profit and margins didn’t impress. Investors were expecting stronger profits after a big rally in defence stocks this month (BDL is up 21% in May vs. 2% for Nifty 50). Why the Optimism? • Strong revenue momentum • Huge order backlog of ₹22,800 crore = 3–4 years of visibility • Expected 60% revenue growth (CAGR) for FY25–27 • Predicted 22–23% margins going forward • FY27 EPS estimated at ₹50, with a P/E of 45x Bottom Line: Short-term pain, but long-term story looks strong. The dip in profit and margins hurt sentiment, but strong revenue, order book, and growth outlook are keeping analysts bullish.