Street View: India's Bharat Dynamics faces margin headwinds

Bharat Dynamics

17/08/2026 06:03

** Defense equipment maker Bharat Dynamics' BARA.NS reports June-qtr gross margin at 52% vs 76% YoY; profit after tax rises 6.5 times from a year earlier, up 5% sequentially
** Shares fall 0.4% to 1,392 rupees
   

RECOVERY FACES MARGIN RISKS
** Goldman Sachs ("Sell," PT: 1,150 rupees) sees risks to FY27 margins from new platform launches and expects limited support from exports
"The recent run-up in the stock price captures most of the upside on revenue front, leaving little on the table" - Goldman Sachs
** Centrum Broking ("Sell," PT: 1,050 rupees) says the risk-reward remains unattractive, with meaningful upside dependent on stronger-than-expected execution of the existing order book or additional large export orders 
** ICICI Securities ("Add," PT: 1,530 rupees) says a demand-led recovery and easing execution overhangs could improve the risk-reward profile
** Motilal Oswal ("Neutral," PT: 1,270 rupees) says the company's reliance on imports and supply-chain partners could lead to project delays and pressure margins due to a higher proportion of outsourced components



 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.Parmar@thomsonreuters.com;))