BDL margin recovery continues, but other income drives 62.45% of PBT
Revenue grew faster than costs both year on year and sequentially, lifting operating margin above the Industrials peer median.
Filed 14 Aug 2026, 13:50 IST · Bharat Dynamics Ltd (BDL)
Key takeaways
- Standalone operating margin improved by 32.82 percentage points year on year to 14.52% as revenue grew faster than expenses.
- Net profit rose +547.36% year on year to Rs 118.79 cr, but other income contributed 62.45% of profit before tax.
- Operating margin expanded 3.02 percentage points sequentially, extending the recovery from 4.59% in Q3FY26 to 14.52% in Q1FY27.
Price around the results
Revenue growth restored operating profitability
Standalone revenue grew +130.81% year on year and +19.17% sequentially, while expenses rose more slowly at +66.78% and +15.11%, respectively. That cost-to-revenue gap drove the operating margin from -18.30% in Q1FY26 to 14.52% in Q1FY27, and from 11.50% in Q4FY26 to 14.52%.
Profit growth was materially supported by other income
Other income accounted for 62.45% of profit before tax, making the reported net-profit growth less representative of operating earnings alone. The tax rate increased by 7.60 percentage points year on year and 1.83 percentage points sequentially, partly offsetting the operating improvement.
Margin recovery has continued for two quarters
Operating margin rose from 4.59% in Q3FY26 to 11.50% in Q4FY26 and 14.52% in Q1FY27, a two-quarter recovery. The current margin was 0.10 percentage points above the 14.42% median for 146 Industrials peers that had reported the quarter.
No immediate stock reaction is available
The results were filed before market close, so a post-results stock move is not yet reflected. Across the previous eight result reactions, the stock rose twice and fell six times, with a median absolute move of 6.28%.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹572 cr | ₹480 cr | +19.17% | +130.81% |
| Other income | ₹103 cr | ₹119 cr | -13.19% | +19.09% |
| Expenses | ₹489 cr | ₹425 cr | +15.11% | +66.78% |
| Operating profit | ₹83 cr | ₹55 cr | +50.40% | — |
| Operating margin (%) | 14.52% | 11.50% | — | — |
| Interest | ₹1 cr | ₹1 cr | -4.48% | -8.57% |
| Depreciation | ₹20 cr | ₹20 cr | +2.02% | +14.67% |
| Profit before tax | ₹166 cr | ₹154 cr | +7.63% | +616.08% |
| Tax | ₹47 cr | ₹41 cr | +15.06% | +879.92% |
| Net profit | ₹119 cr | ₹113 cr | +4.96% | +547.36% |
| EPS (₹) | ₹3.24 | ₹3.09 | +4.85% | +548.00% |
Operating margin of 14.52% compares with a Industrials sector median of 14.42% across 146 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 14.52% after the two-quarter recovery.
- Whether other income remains below or above its 62.45% share of profit before tax.
- Whether expenses continue to grow more slowly than revenue after the current +15.11% sequential expense growth.