Bharat Dynamics Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing steady performance across key financial metrics. The defense manufacturing company also declared an interim dividend for shareholders during its Board meeting held on January 31, 2026.

Financial Performance Overview

The company's Q3FY26 financial results demonstrate robust operational performance with significant contributions from both core operations and other income streams.

Revenue and Income Analysis

For Q3FY26, the company reported total income of ₹66,380.29 lakhs compared to ₹91,655.77 lakhs in Q3FY25. Revenue from operations stood at ₹56,663.04 lakhs, comprising sales income of ₹54,856.26 lakhs and other operating income of ₹1,806.78 lakhs. Other income contributed ₹9,717.25 lakhs to the total income for the quarter.

The nine-month performance showed total income of ₹2,26,619.24 lakhs against ₹1,81,890.83 lakhs in the corresponding period of the previous year, representing growth in overall business operations.

Profitability and Expenses

Total expenses for Q3FY26 amounted to ₹56,062.44 lakhs, resulting in profit before tax of ₹10,317.85 lakhs. After accounting for tax expenses of ₹3,025.65 lakhs, the company achieved net profit of ₹7,292.20 lakhs for the quarter.

Dividend Declaration

The Board of Directors in its 292nd meeting declared an interim dividend of ₹4.50 per share of face value ₹5.00 each for the Financial Year 2025-26. The company has fixed February 9, 2026 as the record date for the purpose of interim dividend payment on equity shares.

Key Highlights and Notes

The company's paid-up equity share capital remains at ₹18,328.12 lakhs with face value of ₹5.00 per share. Total comprehensive income for Q3FY26 reached ₹7,682.84 lakhs after including other comprehensive income of ₹390.64 lakhs.

Notably, the company reported an additional liability of ₹447.50 lakhs due to the impact of new Labour codes notified by the Government of India on November 21, 2025. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on January 31, 2026, with the Board meeting conducted from 12:30 P.M. to 2:30 P.M.

Bharat Dynamics shares experienced a decline of 2.12% to ₹1,420.50 in Friday's trading session, positioning the stock among the top losers on the Nifty Midcap 150 index. The decline occurred amid broader market weakness, with the Sensex closing down 1,065.71 points at 82,180.47 and the Nifty falling 353.00 points to 25,232.50.

Upcoming Board Meeting and Corporate Actions

Bharat Dynamics has informed the BSE that its Board of Directors will meet on January 31, 2026, to consider and approve the unaudited financial results for the quarter and nine months ended December 31, 2025. The board will also deliberate on the declaration of an interim dividend for the financial year 2025-26, if any.

Strong Annual Financial Performance

The company demonstrated robust financial performance in FY25, with significant growth across key metrics. Sales for the year ending March 2025 reached ₹3,345.00 crores, compared to ₹2,369.00 crores in March 2024, marking a substantial increase of 41.2%.

Quarterly Performance Analysis

The quarterly results show varying performance across different periods, with September 2025 recording the highest quarterly sales of ₹1,147.00 crores compared to ₹247.00 crores in June 2025.

Dividend Distribution and Financial Ratios

The company has maintained a consistent dividend policy with recent distributions including a final dividend of ₹0.65 per share (13%) effective September 19, 2025, and an interim dividend of ₹4.00 per share (80%) effective February 14, 2025.

The company's debt-free status, reflected in its debt-to-equity ratio of 0.00 as of March 2025, demonstrates strong financial health despite the recent stock price decline.