Bharat Dynamics Q2 FY27 Results Analysis: Revenue Surges 45%, PAT Slips 15% (BDL)
Bharat Dynamics Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,664.14 Cr (+45.08% YoY) and PAT growth of -15.01% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,664.14 Cr (+45.08% YoY) |
| PAT (Q2) | Rs. 183.48 Cr (-15.01% YoY) |
| EBITDA margin | 6.07% (-1028 bps YoY) |
| EPS (Q2) | Rs. 5.01 (-14.94% YoY) |
Quarter Snapshot
Q2 FY27 revenue of Rs.1,664.14 Cr grew 45.08% YoY and nearly tripled sequentially, confirming the delivery-phasing rebound, but PAT fell 15.01% YoY as a Rs.945.04 Cr finished-goods inventory drawdown compressed EBITDA margin to 6.07% from 16.35%. Cash generation was the standout: H1 CFO of Rs.1,161.58 Cr (3.84x PAT) and FCF of Rs.1,088.72 Cr, funded by customer advances on a debt-free balance sheet. Meeting the ~Rs.5,500 Cr FY27 target requires H2 revenue of Rs.3,263.62 Cr (+211.8% vs H2 FY26), making the delivery schedule the key variable to watch.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Q2 revenue | "up sharply YoY off the depressed base and up sequentially" | +45.08% YoY, +190.81% QoQ | Played out |
| H1 vs straight-line Rs.2,750 Cr | behind pace | Rs.2,236.38 Cr = 40.66% of the Rs.5,500 Cr target | Played out |
| Margins | "flat to modestly expanding" EBITDA margin | 6.07% vs 14.52% in Q1 | Contradicted |
| Employee-cost deleverage | mechanical deleverage on volume step-up | employee cost down to 7.68% of revenue (from 23.83%) | Partially |
| Other-income sensitivity | treasury-dependent profitability | other income = 67.87% of Q2 PBT | Played out |
| Order conversion (QRSAM pending) | modest in-quarter inflow | filing discloses no order book | Not observable |
| Inventory conversion watch | whether Rs.4,625.64 Cr stock converts | total inventory +1.28% despite FG&WIP drawdown charge | Partially |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue ~Rs.5,500 Cr | management at 28 Sep 2026 AGM: "revenue target of ~Rs.5,500 Cr for the current FY" | H1 FY27 Rs.2,236.38 Cr = 40.66% of target; Q2 run-rate Rs.3,328.28 Cr annualised | Stretch |
| Rs.10,000 Cr by FY2030 | same AGM | year 1 of 4 | Too Early |
| ~Rs.25,000 Cr fresh orders over 2–3 years | AGM commentary | order book not disclosed in this filing; ~Rs.2,000 Cr FY27-to-date as of 28 Sep 2026 plus Rs.1,307 Cr Heavyweight Torpedo order (15 Oct 2026, post-quarter) per company announcements | On Track |
Key Investment Insights
Key Positives
- Q2 revenue of Rs.1,664.14 Cr grew 45.08% YoY and 190.81% QoQ; H1 revenue of Rs.2,236.38 Cr grew 60.32% YoY
- H1 CFO of Rs.1,161.58 Cr vs −Rs.80.27 Cr in H1 FY26; CFO/PAT of 3.84x, funded by customer advances (other liabilities inflow of Rs.2,679.09 Cr)
- FCF of Rs.1,088.72 Cr in H1 on capex of Rs.72.86 Cr
- Debt-free balance sheet with Rs.5,920.29 Cr of cash and deposits; net worth grew 6.74% in six months
- Employee cost deleveraged to 7.68% of revenue from 23.83% in Q1
- Other non-current liabilities (advance-type) rose Rs.1,929.08 Cr (+53.18%), indicating customer advances collected ahead of execution
- Rs.1,307 Cr Heavyweight Torpedo order received 15 Oct 2026 per company announcements
Risk Factors
- PAT declined 15.01% YoY to Rs.183.48 Cr despite 45.08% revenue growth
- EBITDA margin compressed to 6.07% from 16.35% YoY, driven by a Rs.945.04 Cr finished-goods/WIP drawdown charge
- Other income equalled 67.87% of Q2 PBT, leaving reported profitability heavily treasury-dependent
- H1 revenue is only 40.66% of the ~Rs.5,500 Cr FY27 target; H2 needs Rs.3,263.62 Cr, +211.8% vs H2 FY26
- Trade receivables rose 46.39% to Rs.619.07 Cr while total inventories edged up 1.28% to Rs.4,685.00 Cr
- Auditor emphasis of matter: Rs.83.27 Cr non-moving inventory (>5 years) remains unprovided
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.