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Bharat Dynamics – Weak execution impacted operational performance

ICICIdirect Research 29 May 2026 DISCLAIMER

The company reported weak operational performance for FY26. Revenue is down 27% YoY to Rs 2442 crore, much lower than expectations. EBITDA margin also stood at 9.1% (vs 14.1% in FY25), which is lowest ever margin on annual basis.
We believe that execution has remained weak mainly due to disruption in supply chain of few of its contracts for missiles (like Barak-8 and Akash surface-to-surface missiles)
Order backlog is estimated to be at ~Rs 26000 crore (10.6x FY26 revenue), which gives strong revenue visibility. Orders pipeline is also strong led by key projects including QRSAM, Varunastra, Akash-NG, Helina etc.
Execution may improve in Akash missiles contract (25-30% of total order backlog) in coming quarters as the company recently announced the completion of production model of Akash-NG system with indigenous seekers. However, timely execution of orders will remain a key monitorable for us in the coming period

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