The contract, signed in New Delhi on September 23 in the presence of Defence Secretary Rajesh Kumar Singh, comes under the Buy (Indian-Indigenously Designed, Developed and Manufactured) category.
SAT-SAAW is an air-to-ground precision-guided glide bomb designed to be launched from platforms including the Jaguar, Hawk and Su-30 MKI. The system is capable of engaging enemy airfields from a long stand-off range.
Designed and developed by the Defence Research and Development Organisation (DRDO), the weapon will have 60% indigenous content. The programme also involves indigenisation of key sub-systems, including the Initial Measurement Unit, Long Impact Delay Fuse and Twin Store Carrier.
Deliveries are scheduled across 2027-28 and 2028-29. According to the Defence Ministry, the induction of SAT-SAAW will strengthen the operational capabilities of the IAF and bolster the country’s defence preparedness.
Order pipeline gets another boost
The contract adds to BDL’s growing order pipeline at a time when the defence PSU has also reported a sharp improvement in financial performance.
In August, BDL reported more than a six-fold jump in profit to ₹118.8 crore for the quarter ended June 30, 2026, from ₹18.4 crore in the year-ago period.
Revenue from operations more than doubled year-on-year to ₹572.2 crore from ₹247.9 crore, while EBITDA turned positive at ₹83.1 crore, compared with an EBITDA loss of ₹45.4 crore a year earlier. The EBITDA margin stood at 14.5%.Total income for the quarter was ₹675.7 crore, including ₹103.4 crore of other income, while total expenses stood at ₹510 crore. Profit before tax rose to ₹165.6 crore from ₹23.1 crore in the year-ago period.
BDL has also added to its order book through other defence contracts. In June, the company secured orders worth ₹1,347.71 crore from Hindustan Aeronautics Ltd (HAL). These included ₹1,109.37 crore worth of Helina launchers and line-replaceable units, and another ₹238.34 crore for countermeasure dispensing system LRUs. The contracts are to be executed over 24 to 60 months.
BDL, a Ministry of Defence public sector undertaking, manufactures guided missile systems and allied defence equipment for the Indian Armed Forces.
Shares of Bharat Dynamics Ltd closed 0.76% lower at ₹1,162 on the BSE on Wednesday, ahead of the announcement.