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Company Profile

Bharat Dynamics Limited (BDL) is one of the Indian manufacturers of ammunition and rocket systems. It was founded in Hyderabad in the year 1970. BDL works with

DRDO and international original equipment manufacturers (OEMs) to develop and supply rockets and related devices for the Indian military. It began with the development of a first-generation tank defence rocket, the ‘French SS11B1’. BDL plays a core role as a manufacturer of military systems, expanding its internal capabilities and focuses primarily on design and technical activities. BDL production facilities are in Telengana and Andhra Pradesh.

Defence Industry in India

•   The Indian military is one of the world’s most powerful and is strategically important for the country. The most important market segments for the Indian defence industry are military wings, naval ships, ground fighter jets, rockets and rocket defence systems. Electronic warfare, artillery, u-boats, military rotorcraft, tactical communication, military soil vehicles are some of the other important factors. Some of the best defence companies in India are Bharat Earth Movers Ltd. (BEML); Bharat Electronics Ltd. (BEL and Hindustan Aeronautics Ltd. (HAL).

•  The defence industry is an important part of the Indian economy. The company will likely accelerate as national security concerns grow. The need for defensive weapons in India is on the rise as territorial disputes continue between India and Pakistan, for the state of Kashmir. For the past five years, India has been one of the largest importers of defence equipment to achieve technical advantages over countries such as China and Pakistan. For 2025 - 2026, the Ministry of Defence (MOD) received a budget of Rs.6.81 lakh crore or USD 78.7 billion (app). This is a 9.5% increase compared to the 2024 - 2025 budget.

•   According to the Global Power Index, India's defence sector is one of the most powerful and promising. Defence exports is expected to exceed Rs.21,000 crores (USD 2.43 billion) during CY24 to Rs. 50,000 crores (USD 5.8 billion) by 2029. In FY21 and FY20, India’s defensive imports reached USD 469.5 million. India plans to sell military equipment worth USD 5 billion (approximately Rs.35,000 cr) over the next five years. India ranked 19th in the world’s list of the most important defence equipment exporters.

•  By means of “Innovations for Defence Excellence (iDEX),” the Indian government is focusing on innovative approaches to bolster the country’s security and defence. Startups now have a platform to work with defence facilities and develop new products and technologies. By collaborating with partner incubators, iDEX has effectively enlisted the startup community to participate in the Defence India Start-up Challenge (DISC) program.

•   The Defence Ministry’s goal of being 70% self-sufficient with weapons by 2027 presents a plethora of options for industrial players. The Green Channel Status Policy (GCS) was created to promote private sector investments in defence production and to expand the private sector’s role in defence manufacturing. In order to realize India's vision of an “Atmanirbhar Bharat,” the government is prioritizing the removal of obstacles for foreign investment in the sector.

Company Perspective and Review

• The company has demonstrated excellent fi-nancial performance, cha-racterized by targeted growth initiatives and higher profitability. Des-pite obstacles including geopolitical considerations and reliance on government contracts, the firm is well-positioned for long-term growth in the defence industry thanks to its robust order book, emphasis on research and development, and global expansion initiatives. The company has declared continuous dividend and can be considered a good buy. Nonetheless, managing inventories and supply chain dynamics will be essential for overcoming any obstacles.