Bharat Dynamics Q1 FY27 Results (NSE: BDL)
Signal: Growth reaccelerated
The read
The operating inflection is substantial—revenue reached ₹57,224.03 lakh (+130.8% YoY), EBITDA ₹18,652.00 lakh (+349.6%) and PAT ₹11,879.11 lakh (+547.4%)—but the quarter is not yet a clean quality signal because other income of ₹10,343.86 lakh contributed 62.5% of PBT, gross margin compressed 2,285bps YoY, and ₹8,327.07 lakh of inventory has been non-moving for more than five years without provision.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹572.24 Cr | 130.8% | +19.2% |
| EBIT | ₹166.27 Cr | 597.7% | |
| Net profit | ₹118.79 Cr | 547.4% | |
| EPS | ₹3.24 | 548.0% | |
| EBIT margin | 32.6% |
P&L walk
Revenue increased to ₹57,224.03 lakh, +130.8% YoY and +19.2% QoQ, while EBITDA rose +349.6% YoY to ₹18,652.00 lakh and PAT rose +547.4% YoY to ₹11,879.11 lakh; however, ₹10,343.86 lakh of other income represented 62.5% of PBT and gross margin compressed 2,285bps YoY.
Key positives
- Revenue rose to ₹57,224.03 lakh, +130.8% YoY and +19.2% QoQ, marking a sharp recovery from ₹23,109.26 lakh in Q1FY26.
- EBITDA increased 349.6% YoY to ₹18,652.00 lakh and EBITDA margin was 32.6%; employee cost rose only 3.3% YoY to ₹13,637.47 lakh while revenue rose 130.8%.
- Finance cost declined 8.4% YoY to ₹63.77 lakh, limiting below-operating-line pressure.
- EPS of ₹3.24 grew 548.0% YoY, broadly matching PAT growth of 547.4% and showing no material dilution signal.
Key concerns
- Gross margin compressed 2,285bps YoY to 51.5%, with materials plus inventory changes at ₹27,739.92 lakh versus ₹5,923.38 lakh a year ago; the filing does not disclose the driver.
- Other income of ₹10,343.86 lakh represented 62.5% of PBT, making the ₹11,879.11 lakh PAT less representative of recurring operating earnings.
- ₹8,327.07 lakh of inventory has been non-moving for more than five years, unchanged from 31 March 2026, and no redundancy provision was recorded.
- The Audit Committee could not be reconstituted because the tenure of Independent Directors expired and the required quorum was unavailable; the Board therefore approved the results without a duly constituted Audit Committee.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.