BDL profit falls 58.51% YoY as Q4 revenue drops 72.98%
Margin recovered sequentially as expenses fell faster than revenue, but other income supplied 77.43% of pre-tax profit.
Filed 28 May 2026, 15:18 IST · after market close · Bharat Dynamics Ltd (BDL)
Key takeaways
- Standalone net profit fell 58.51% YoY as revenue declined 72.98% and operating margin narrowed 5.32 percentage points.
- Sequentially, operating margin recovered 6.91 percentage points to 11.50% because expenses fell 21.40%, faster than the 15.25% revenue decline.
- Other income contributed 77.43% of pre-tax profit, making the quarter's Rs 113.18 cr net profit heavily reliant on non-operating income.
Price around the results
Q4FY26 revenue contraction cuts standalone operating profit
Bharat Dynamics' standalone Q4FY26 revenue fell 72.98% YoY to Rs 480.20 cr, pulling operating profit down 81.52% to Rs 55.24 cr. The revenue decline was steeper than the 71.25% fall in expenses, so operating margin narrowed by 5.32 percentage points to 11.50%. Sequentially, revenue also declined 15.25%, pointing to uneven quarterly execution.
Sequential margin recovery does not resolve profit quality
Operating margin improved 6.91 percentage points from Q3FY26 because expenses fell 21.40%, faster than the 15.25% decline in revenue. Other income rose 22.63% sequentially and 19.67% YoY, accounting for 77.43% of pre-tax profit. The tax rate fell 2.87 percentage points sequentially and 1.42 percentage points YoY, which also supported net profit.
Margin is above Q3 but below peers and Q4FY25
The 11.50% operating margin recovered from 4.59% in Q3FY26, but remained below 16.35% in Q2FY26 and 16.82% in Q4FY25. Among 71 Industrials peers that have reported, BDL's margin was 4.16 percentage points below the 15.66% median and ranked 19th from the bottom. This leaves the latest margin recovery short of the prior-year quarter's level.
The post-results fall was near BDL's usual move
After the 28 May after-close filing, the stock fell 6.05% in the first session, with volume at 7.21 times the reference level. The decline was close to the 6.28% median absolute move after BDL's previous eight results, when the stock rose three times and fell five times.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹480 cr | ₹567 cr | -15.25% | -72.98% |
| Other income | ₹119 cr | ₹97 cr | +22.63% | +19.67% |
| Expenses | ₹425 cr | ₹541 cr | -21.40% | -71.25% |
| Operating profit | ₹55 cr | ₹26 cr | +112.63% | -81.52% |
| Operating margin (%) | 11.50% | 4.59% | — | — |
| Interest | ₹1 cr | ₹1 cr | +0.00% | -5.63% |
| Depreciation | ₹20 cr | ₹19 cr | +2.85% | +1.02% |
| Profit before tax | ₹154 cr | ₹103 cr | +49.15% | -59.31% |
| Tax | ₹41 cr | ₹30 cr | +34.53% | -61.38% |
| Net profit | ₹113 cr | ₹73 cr | +55.21% | -58.51% |
| EPS (₹) | ₹3.09 | ₹1.99 | +55.28% | -58.47% |
Operating margin of 11.50% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.05% | -4.55% |
| Next session | -6.10% | — |
| 5 sessions | -5.83% | -3.57% |
| 15 sessions | +7.11% | — |
| 30 sessions | +1.61% | — |
Volume on the results session was 7.21× its 20-day average.
What to watch
- Whether operating margin sustains the recovery from 4.59% in Q3FY26 to 11.50% in Q4FY26.
- Whether other income's 77.43% share of pre-tax profit declines.
- Whether quarterly revenue avoids another 15.25% sequential decline.