BDL share price: Defence stock Bharat Dynamics soars 7% on strong Q2 results FY26. Should you buy, sell or hold?

Multibagger defence stock Bharat Dynamics surged as much as 6.92% to ₹1,622.90 apiece in Friday's trading session after the company reported strong financial results for the September quarter.

Bharat Dynamics' share price has been in a bull run in the near term. The defence stock has given a return of 8% in a month, while it has surged 63% in the last year. The defence stock has doubled long-term investors' wealth by rallying 948% in the past five years.

Bharat Dynamics Q2 results 2025

Bharat Dynamics reported a strong performance for Q2FY26, with its standalone profit rising 76.2% year-on-year to ₹215.88 crore, up from ₹122.53 crore in the same quarter last year.

Revenue from operations surged 110.55% to ₹1,147.03 crore, compared with ₹544.77 crore a year ago. Total expenses also grew sharply, increasing 111% to ₹979.98 crore from ₹464.33 crore in the corresponding quarter of the previous year.

EBITDA climbed 89.4% to ₹188 crore versus ₹98.8 crore last year. Despite the higher EBITDA, the EBITDA margin declined to 16.4%, compared with 18.1% in the year-ago period.

Total operating revenue reached ₹1,394.96 crore in H1FY26, up 89.5% from ₹735.94 crore in H1FY25.

Meanwhile, total expenses for H1FY26 increased 78.24% year-on-year to ₹1,291.64 crore, compared with ₹724.65 crore in the corresponding period last year.

“BDL delivered a strong topline performance in Q2FY26, with revenue surging 114.2% YoY and 396.4% QoQ. It’s way ahead of the Street estimate, driven by accelerated execution across missile programs and a favourable delivery schedule. The company’s execution momentum highlights its strengthened operational capabilities and improved supply- chain coordination, following recent modernisation efforts,” brokerage firm Choice Broking said in a report.

BDL share price: Should you buy or sell?

Choice Broking, while maintaining a ‘buy’ tag with a target price of ₹1,965 apiece, said, “ We believe that multiple high-value indigenous programs, such as Astra Mk-2, Akash NG and ATGM, are expected to move into production. Hence, BDL remains one of the most credible beneficiaries of India’s growing missile modernisation agenda. BDL’s robust orderbook of ~7x FY25 revenue, coupled with an incremental pipeline of INR 500–600 Bn, provides multi-year earnings visibility and operating leverage tailwinds. As execution scales up, we expect strong cash generation and profitability improvement through FY28E.”

Meanwhile, brokerage firm Nirmal Bang sees an upside potential up to 17% with a target price of ₹1,774 apiece. “Revenue, EBITDA, and PAT are projected to clock a CAGR of 38%, 67%, and 49%, respectively, during FY25–FY27E. The stock trades at 1- year forward P/E of 46x, above its 5-year average of 38x. We maintain BUY with a valuation at 54x Sep-27E EPS, implying a 17% upside to the target price of Rs1,774.”

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.