Bharat Dynamics Q4 Results: Net profit dips 5.5%, recommends final dividend

Bharat Dynamics Ltd (BDL) on Tuesday reported a slight drop in quarterly profit despite more than doubling its revenue, as operating margins came under significant pressure.

Net profit for the quarter ended March 31 declined 5.5% year-on-year to ₹272.7 crore, from ₹288.8 crore in the same period last year.

Revenue rose sharply to ₹1,777 crore, up from ₹854 crore a year earlier, driven by a strong execution cycle in its order book for defence equipment.

However, EBITDA fell 5.5% to ₹299 crore, compared with ₹316.3 crore in the prior-year quarter. The company’s EBITDA margin contracted steeply to 16.83%, from 37.04% a year ago, reflecting rising input costs and lower operating leverage.

The state-owned defence manufacturer, which produces missiles and related defence systems, has seen strong order inflows in recent quarters, but the volatility in margins may concern investors going forward.

The company’s board has recommended a final dividend of ₹0.65 per share (face value ₹5), subject to shareholder approval at the upcoming annual general meeting. The dividend will be paid within 30 days of its declaration.

Shares of BDL ended 2.7% higher at ₹1,959.80 on the BSE ahead of the earnings release.