PSU defence stock with revenue guidance of over ₹3,000 Cr for FY25 to add to your watchlist

A leading Miniratna missile manufacturer has set an ambitious target of achieving Rs.3,000 crore in topline revenue by FY25. The company aims to bolster its growth strategy through enhanced production capabilities, expanding market reach, and increasing demand for its advanced defence technologies, positioning itself for long-term success in the defence sector.

Share Price Movement 

During Thursday’s trading session, Bharat Dynamics Ltd‘s share price hit an intraday high of Rs.1,232.00 apiece, rising 2.8 percent from the previous close of Rs.1,198.00 apiece. The share has since retreated and is currently trading at Rs.1,200.00 per share. Over the past five years, the stock has delivered over 1,220 percent returns. 

Management Guidance

Bharat Dynamics Ltd (BDL) has overcome execution challenges that were previously caused by supply chain disruptions, positioning the company to achieve its revenue guidance of Rs.3,000 crore for FY25. As these issues have eased, BDL is on track to maintain strong execution momentum, with expectations for continued growth in FY26. 

The company is targeting over 30 percent revenue growth in the upcoming financial year, driven by an expanding order book, improved operational efficiencies, and increasing demand for its advanced defence products. BDL’s focus on enhancing its production capacity and strengthening its supply chain capabilities will support its goal of becoming a more prominent player in India’s indigenous defence manufacturing ecosystem.

Strong Order Book to Support Growth

BDL’s order book currently stands at Rs.20,900 crore, nearly nine times its annual revenue, offering strong visibility for future growth. In January 2025, the company secured a Rs.2,960 crore contract to supply Medium-Range Surface-to-Air Missiles (MRSAM) to the Indian Navy, contributing to healthy order inflows. For Q3FY25, the order intake reached Rs.2,960 crore, bringing the year-to-date order inflows to Rs.31,00 crore. 

Looking ahead, BDL targets maintaining an average order book of Rs.20,000 crore over the next 4-5 years, with expected annual growth in order inflows of 25-30 percent. The company anticipates securing an additional Rs.20,000 crore worth of orders in the next 2-3 years, driven by upcoming Indian defence programmes.

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Capacity Enhancement

BDL is significantly ramping up its manufacturing capacity to meet growing demand, with plans to double production within 3-5 years and triple it over the next decade. The company is investing Rs.2,000 crore in capacity expansion, while its R&D expenditure has increased from 1 percent to 6 percent of sales in FY24. 

Additionally, BDL has partnered with global leaders such as Thales to enhance indigenous defence manufacturing through technology transfers. The collaboration with Thales, particularly for the Man-Portable Air Defence Systems, is poised to expand BDL’s product offerings and boost its export potential.

Export Growth Potential

BDL’s export order book is valued at Rs.2,717 crore, with the Indian government’s approval for Akash missile exports to nine countries, boosting BDL’s international footprint. Currently, exports contribute 13 percent to the order book, and management anticipates this share will increase to 25 percent of total revenues in the coming years. This growth is expected to drive margin expansion and ensure long-term revenue stability.

Financial Overview

According to its recent financial updates, BDL reported consolidated revenue of Rs.832 crores in Q3 FY25, marking a 38 percent increase from Rs.602 crores in Q3 FY24. Similarly, the company saw a 8 percent incline in net profit to Rs.147 crores, compared to Rs.135 crores in the same period. 

Company Profile 

Bharat Dynamics Limited (BDL) is a Government of India Enterprise under the Ministry of Defence, specialising in the manufacturing of missiles and allied defence equipment. The company primarily supplies its products and services to the Indian Armed Forces and the Government of India.

Written by – Siddesh S Raskar

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