Bharat Dynamics shares rose 0.6% to ₹1,391.90 in morning trade on Thursday, even as brokerage firm Goldman Sachs maintained its bearish stance on the defence PSU. The stock has shown resilience despite the challenging financial performance, with recent reports suggesting that India is in talks with the United Arab Emirates for potential export of defence systems, including the BrahMos missile system and the Akashteer air defence system. However, Goldman Sachs retained its 'Sell' rating with a price target of ₹1,275, implying a downside of nearly 8% from Wednesday's closing price. The brokerage's cautious view comes even as sentiment towards defence stocks has improved in recent sessions, with the UAE discussions at an initial stage but progressing with Gulf nation expressing interest in several Indian defence platforms.
Bharat Dynamics Ltd (BDL) has secured orders worth ₹1,350 crore from Hindustan Aeronautics Ltd (HAL) for the supply of missile-related systems and defence equipment. According to the latest exchange filing by BDL on Wednesday, June 24, the contracts comprise Helina launchers and line replaceable units (LRUs) worth ₹1,109.37 crore, along with countermeasure dispensing system (CMDS) LRUs valued at ₹238.34 crore. The contracts are scheduled to be executed over a period of 24 to 60 months. However, the company stated it is unable to disclose further details of the contracts due to confidentiality requirements linked to national security considerations. The larger order supports the integration of India's indigenously developed helicopter-launched anti-tank missile on military helicopter platforms.
The Helina missile is developed by the Defence Research and Development Organisation (DRDO) as a helicopter-launched version of the Nag missile, a third-generation, fire-and-forget weapon system. The missile climbs sharply after launch and then plunges directly onto the top of tanks, making it highly effective as the tank's top armour is thinnest and enabling defeat of heavily-protected vehicles. It uses a high-resolution imaging infrared seeker that identifies targets using heat signature, operating effectively during day and night and in adverse weather conditions. Unlike older anti-tank missiles requiring continuous guidance, Helina can guide itself once locked onto its target, allowing helicopters to take cover and reducing exposure to enemy fire. The missile can operate in mountainous terrain, giving armed forces the ability to engage armoured targets from safe distances.
Brokerage firm Goldman Sachs maintains a 'Sell' rating on Bharat Dynamics with a price target of ₹1,275, implying a downside of nearly 8% from Wednesday's closing price. According to Goldman Sachs, the ₹1,109.37 crore Helina launcher order is ahead of its estimates and is expected to increase the company's FY29 revenue and earnings forecasts by 1.4%, resulting in a similar increase in earnings per share (EPS). The brokerage noted that the orders are scheduled to be executed over the next 24 to 60 months, with meaningful revenue recognition likely from FY28 onwards. However, Goldman Sachs continues to see near-term risks to margins, as the mix of upcoming projects is expected to involve a higher proportion of externally procured components. Following the development, Goldman Sachs has revised its projections to include the ₹11.1 billion Helina order in FY27, while retaining its estimate of an additional ₹13.9 billion Helina order inflow in FY29.
The company reported a subdued performance for both the March quarter and FY26, impacted by slower project execution and pressure on margins. In Q4FY26, Bharat Dynamics reported a 58.5% drop in net profit at ₹113.18 crore compared to ₹272.77 crore in the corresponding quarter previous year. The defence PSU's revenue declined 72.86% to ₹488.62 crore for the quarter ended March 31, 2026, from ₹1,800.55 crore in the same period last year. EBITDA dipped 81.5% to ₹55.2 crore for the quarter under review against ₹299 crore in Q4FY25, with EBITDA margin remaining at 11.5% against 16.8% in the January to March quarter of the preceding fiscal year.
