Defence stock jumps after receiving order worth ₹2,461 Cr for anti tank guided missile 

Synopsis:
A major defence order worth over  Rs 2,461 crore has boosted investor sentiment, driving stock gains. Strong revenue and profit growth in Q2, along with a robust order book and fresh missile contracts, highlight improving execution, visibility, and long-term growth momentum in the defence manufacturing space.

The shares of a prominent ammunition and missile systems manufacturer gained up to 2.1 percent in today’s trading session after the company bagged a significant work order from the Indian Army worth Rs 2,461.62 crore.

With a market capitalisation of Rs 56,523.94 crore, the shares of Bharat Dynamics Ltd were trading at Rs 1,542.00 per share, increasing around 0.82 percent as compared to the previous closing price of Rs 1,529.50 apiece.

Significant Order

The shares of Bharat Dynamics Ltd have seen a positive movement after securing a major domestic defence order from the Indian Army worth  Rs 2,461.62 crore. The contract covers the supply of ATGMs over 42 months and SAMs within 12 months. With confidentiality due to national security, this order significantly strengthens revenue visibility, execution momentum, and long-term growth prospects.

Q2FY26 Highlights

Looking into the company’s financial performance in Q2FY26, in which revenue increased by 110 percent on a year-on-year basis from Rs 545 crore in Q2FY25 to Rs 1,147 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 362 percent from Rs 248 crore in Q1FY26 to Rs 1,147 crore in Q2FY26.

Moreover, net profit increased by 75 percent on a yearly basis from Rs 123 crore in Q2FY25 to Rs 216 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 1,100 percent from Rs 18 crore in Q1FY26 to Rs 216 crore in Q2FY26.

Meanwhile, EBITDA for the quarter rose 89.4% year-on-year to Rs 188 crore, compared with Rs 99 crore in the same period last year, while the EBITDA margin stood at 16%, slightly lower than 18% a year earlier.

Recently, Bharat Dynamics Ltd has signed a contract valued at Rs 2,095.70 crore with the Ministry of Defence for the supply of Invar Anti-tank missiles for the Indian Army. This order will be executed in a span of 3 years. 

Order Book Highlights

Bharat Dynamics Ltd., a Government of India enterprise, develops and manufactures guided missiles, torpedoes, and other allied defence products for the nation’s armed forces. It serves as India’s primary manufacturing base for high-tech weapon systems and provides support services like refurbishment and life-extension for existing missile systems.  

As of March 31, 2025, the company’s order book stands strong at Rs 22,814 crore, boosted by Rs 6,668 crore in new orders during the year. This underscores growing stakeholder confidence and its proven capability in advanced missile and defence systems, with ATGMs, SAMs, and underwater weapons remaining key contributors to operational strength and future growth.

Bharat Dynamics Limited’s product lineup, including the NAG, Milan-2T, Konkurs-M, and INVAR ATGMs, showcases robust indigenous capability. By providing critical equipment to India’s armed forces, BDL strengthens national security and highlights the country’s progress in self-reliant defence technology.

Written by Abhishek Singh

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