India’s defense sector is buzzing with activity as two prominent public sector undertakings (PSUs), Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL), celebrate significant contract acquisitions and shareholder bonuses. The stock prices of both companies are experiencing an upward trend, catching the attention of investors and defense analysts alike.

As BEL excels in advanced electronic systems, BDL is renowned for its missile production capabilities. With both firms securing new contracts and demonstrating consistent growth, many are eager to see what strategic moves lie ahead.

Key Highlights of BEL and BDL

Strong Order Book for BEL

Recently, BEL announced the acquisition of new contracts valued at ₹1,385 crore, significantly bolstering its order backlog. This announcement, made on March 27, includes projects like radar enhancements, electronic voting machines, navigation systems for armored vehicles, and naval fire control systems. With these new orders, BEL’s total order inflow for FY25 has reached an impressive ₹18,415 crore.

BDL’s Major Contract Achievement

On a parallel track, BDL secured a substantial contract worth ₹4,362.23 crore from the Ministry of Defence. This agreement, aimed at supplying crucial armaments to the Indian Armed Forces, underscores the nation’s commitment to indigenous defense production under the Aatmanirbhar Bharat initiative. While the specifics of this deal are classified, its scale reflects BDL’s pivotal role in India’s defense capabilities.

Dividend Announcements

BEL’s Reward for Shareholders

In a move to reward its investors, BEL has announced an interim dividend of ₹1.50 per share, scheduled for distribution on March 27, 2025. This decision demonstrates BEL’s commitment to providing value to its shareholders.

BDL’s Dividend Declaration

Conversely, BDL declared an interim dividend of ₹4 per share earlier in February, with February 14 as the record date. This distribution reflects BDL’s robust financial health and commitment to its investor base.

Financial Performance in Q3 FY25

BEL’s Impressive Earnings

BEL reported a total income of ₹5,957.07 crore, marking a 25.1% quarter-on-quarter growth and a remarkable 37.6% year-on-year increase. Its Profit After Tax (PAT) surged to ₹1,311.60 crore, reflecting a 20% QoQ increase and a 52.5% rise YoY.

BDL’s Revenue Growth

In Q3 FY25, BDL experienced a 38% year-on-year revenue growth from operations, reaching ₹832.13 crore, up from ₹601.61 crore in the previous year. Additionally, its net profit increased by 9% YoY to ₹147 crore, while EBITDA rose 7% to ₹127 crore.

Stock Market Performance

BEL’s Rising Share Price

Today, BEL’s stock gained 1% in trading, reflecting a impressive 23% increase over the past month. In a broader view, the stock has appreciated 51% over the last six months, although its year-to-date (YTD) performance shows a more modest 3% rise.

BDL’s Positive Market Trends

In today’s trading session, BDL’s share price increased by 2%, contributing to a 34% surge in the past month. Over a six-month period, its stock has shown a 13% return, while its yearly performance showcases an impressive 49% growth. The YTD return for BDL stands at 15%.

Overview of BEL and BDL

As India enhances its defense budget, BEL focuses on developing radar systems, communication technologies, and fire control solutions, positioning itself at the forefront of electronics-based defense innovations. Meanwhile, BDL specializes in missile and torpedo production, aligning with India’s strategic objectives for naval and military expansion.

In summary, both BEL and BDL are not just making headlines for their contract wins but are also paving the way for India’s self-reliant defense industry. With their strong financial performances and strategic initiatives, these companies are well-positioned for future growth and investor interest.