BDL Q1 results today: Should you buy this defence stock ahead of the June quarter earnings? Experts weigh in

BDL Q1 results today: Bharat Dynamics (BDL) share price is expected to be in focus on Tuesday, 12 August, ahead of the large-cap defence company’s June quarter (Q1) earnings.

In an exchange filing on July 31, BDL had said that a meeting of the company’s board of directors would be held on Tuesday, 12 August, to consider and approve the unaudited financial results of the company for the quarter ended 30 June 2025.

Ahead of the earnings on August 11, the stock ended 1 per cent higher at ₹1,513.90 on the NSE.

BDL share price has seen strong momentum this year, rising 34 per cent year-to-date. Benchmark Nifty 50 has risen just 3.5 per cent for the year so far.

However, the defence stock has seen some profit booking over the last few months. On a monthly scale, BDL shares have been in the red since June, cumulatively losing 25 per cent.

BDL shares hit their 52-week high of ₹2,096.60 on May 30 this year after hitting a 52-week low of ₹890 on November 18 last year.

BDL Q1 results preview

For the last quarter (Q4FY25), BDL reported a strong surge in revenue, which indicated the company was to start the financial year 2025-26 on a strong footing.

The company’s total revenue from operations more than doubled to ₹1,776.98 crore in Q4FY25 from ₹854.12 crore in Q4FY24.

Experts believe the defence company’s Q1 earnings may highlight a strong order book and steady margins amid a favourable environment for the defence sector.

Nitin Jain, Senior Research Analyst at Bonanza, pointed out that Bharat Dynamics has a sizable current order book of approximately ₹22,700 crore, with a pipeline of ₹50,000 crore, which suggests the company’s top-line growth may continue in Q1FY26.

“Estimates suggest 18-21 per cent annual earnings and revenue growth over the next three years. EBITDA margins are expected to remain robust, supported by operational efficiency, indigenisation initiatives, and an improved product mix,” said Jain.

“The preview suggests another strong quarter, with topline and profitability both set for notable YoY gains, anchored by a large order book, steady margins, and a favourable defence sector environment,” Jain said.

Should you buy BDL stock ahead of Q1 results?

The defence sector is witnessing healthy order inflows, and BDL, one of the country’s most prominent defence companies, is expected to reap the benefits of sectoral tailwinds, making it a long-term buy.

At the current juncture, technical experts point out favourable indicators for the stock.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, said at the current juncture, the stock has found support at its 200-day Exponential Moving Average (DEMA), which also coincides with the 50 per cent Fibonacci retracement level, adding strength to this support zone.

Additionally, a hidden bullish divergence is visible on the daily RSI, indicating the potential for a trend reversal.

“Based on these technical factors, accumulation is advised in the ₹1,530- ₹1,450 range, targeting an upside towards ₹1,800. Risk should be managed with a stop loss placed below ₹1,350 on a daily closing basis. This setup offers a favourable risk-reward ratio for positional traders looking to capitalise on a possible recovery,” said Patel.

According to Mandar Bhojane, Senior Technical Analyst at Choice Broking, BDL is taking support near its 200 EMA.

Bhojane underscored that on the daily chart, a strong demand zone exists between ₹1,480- ₹1,500, where the price is holding and has formed an inverted hammer-indicating potential buying interest.

“If the price sustains above ₹1,500- ₹1,520, it would signal a bullish reversal and open up potential upside targets of ₹1,640 and ₹1,700. Those already holding the stock can continue to hold with a stop loss at ₹1,450,” said Bhojane.

“On the downside, immediate support lies near ₹1,495, where the 200 EMA is placed. A breakdown below this level could trigger a deeper correction towards ₹1,400,” Bhojane said.

The RSI is in the oversold region at 25.48, suggesting that the stock is heavily sold and may be due for a rebound, while the Stochastic RSI is also showing signs of a potential reversal from oversold territory.

 

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