The verse begins with "Jñeyaḥ sa nitya-sannyāsī," which means the one who is to be known as a perpetual renunciant. Here, Lord Krishna is referring to someone who has cultivated the attitude of detachment consistently throughout their life. This renunciation is not temporary but enduring, practiced continuously regardless of circumstances.

Lord Krishna describes the characteristics of a true renunciant or sannyasi. He emphasizes that true renunciation is not merely the abandonment of external activities but also the renunciation of attachment and aversion towards the objects of the senses. Krishna further explains that such a renunciant is characterized by their equanimity towards the dualities of life. They neither hate nor desire worldly objects. This does not mean they abstain from engaging with the world but rather that they maintain a balanced and detached perspective. They are not swayed by the attractions or repulsions of the material world.

The term "Nirdvandvo hi mahā-bāho" highlights the significance of transcending dualities. Mahā-bāho, meaning mighty-armed, is a term of endearment used by Krishna for Arjuna. He explains that being free from dualities is essential for attaining happiness and liberation from the cycle of birth and death.

The verse concludes with "sukhaṁ bandhāt pramuchyate," indicating that by transcending dualities, one is liberated from the bondage of material existence and attains true happiness. This happiness is not dependent on external circumstances but arises from inner peace and contentment born out of spiritual realization.

Overall, this verse underscores the importance of cultivating detachment and equanimity in spiritual practice. It teaches that true renunciation is not about renouncing outer activities alone but involves letting go of attachment and aversion towards the world. By transcending dualities and embracing a balanced perspective, one can experience genuine freedom and lasting happiness.