Bharat Dynamics: ICICI Securities Downgrades Stock to HOLD, Sets INR 1,590 Target Price

Overview

ICICI Securities has downgraded Bharat Dynamics Limited (BDL) to a 'HOLD' rating with a revised target price of INR 1,590. The report noted BDL's strong Q2FY26 performance, which surpassed expectations with a 90% year-over-year increase in EBITDA driven by a 114% surge in sales. However, EBITDA margins saw a decline of 180 basis points due to an adverse product mix and increased expenses. The company secured new orders worth INR 21 billion, bolstering its orderbook to over INR 240 billion, and maintains its FY26 revenue guidance.