Why Bharat Dynamics's shares are falling
Bharat Dynamics shares slipped 2.15% on Thursday, closing at ₹1,445.90, after its latest quarterly earnings disappointed investors.
Profits fell and cash flow took a hit
Even though the company's sales for the year ending March 2025 jumped to ₹3,345 crore (up from ₹2,369 crore), profits actually fell to ₹549 crore and cash flow took a big hit annually.
For young investors or anyone tracking defense stocks, this signals that strong sales alone don't guarantee financial health.
Liabilities go up alongside assets
Operating cash flow dropped sharply to ₹167 crore (from last year's ₹411 crore), and net cash flow turned negative at -₹459 crore.
Liabilities also went up alongside assets.
Plus, a stock split in May 2024 halved the face value of shares from ₹10 to ₹5—potentially shaking up trading patterns and liquidity.