BHEL Q2FY26 Results: Profit triples to Rs 375 crore, revenue rises 14% YoY

Bharat Heavy Electricals Ltd (BHEL) on Wednesday, October 29, reported a strong recovery in its July–September quarter earnings, driven by better project execution and steady order inflows. The state-run engineering major posted a consolidated net profit of Rs 374.9 crore for the quarter, nearly three times higher than Rs 106.2 crore a year earlier, marking one of its strongest performances in recent years.

Revenue from operations increased 14.1 per cent year-on-year to Rs 7,511.8 crore, up from Rs 6,584 crore in the same period last year. The company’s total income rose 15 per cent to Rs 7,686 crore, while total expenses climbed to Rs 7,202 crore from Rs 6,571 crore a year earlier.

According to the company’s exchange filing, BHEL outperformed expectations on all major parameters except revenue. Revenue stood at Rs 7,511.8 crore against an estimate of Rs 7,806 crore, while EBITDA came in at Rs 580.9 crore versus an estimated Rs 266 crore - an impressive 111 per cent jump year-on-year. The EBITDA margin expanded to 7.7 per cent, exceeding the Street’s forecast of 3 per cent.

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Profit after tax (PAT) surged 253 per cent to Rs 374.9 crore, significantly above the estimated Rs 193 crore, while other income rose 56.9 per cent to Rs 174.6 crore from Rs 111.3 crore last year.

Operating margins more than double

The company’s operating performance strengthened considerably during the quarter. EBITDA more than doubled from Rs 275 crore a year earlier, while margins improved sharply to 7.7 per cent from 4.2 per cent. The improvement was largely supported by tighter cost control, smoother execution of ongoing projects, and a healthier mix of business segments. The results also signalled a firm turnaround from the previous quarter, when BHEL had slipped into a loss of Rs 456 crore, weighed down by higher expenses and slower project activity.

Order inflows at Rs 35,000 crore; order book remains strong

During the quarter, BHEL received fresh orders worth Rs 35,000 crore. Of this, Rs 25,992 crore came from the power segment, while Rs 9,383 crore was from the industry and exports divisions. The company’s total outstanding order book at the end of September stood at Rs 2,19,600 crore, reflecting strong visibility for the coming quarters.

In September, BHEL also announced a major order win from M.P. Power Generating Company Ltd (MPPGCL) for two supercritical thermal power projects in Madhya Pradesh. The Engineering, Procurement and Construction (EPC) contract covers the 1x660 MW Amarkantak Unit 6 and 1x660 MW Satpura Unit 12 power plants, with a combined contract value estimated between Rs 13,000 crore and Rs 15,000 crore, excluding taxes and duties.

The projects will be executed over 57 months and include equipment supply, civil works, erection, and commissioning. The company clarified that the orders are purely domestic and not related-party transactions.

Shares rise as investors welcome strong quarter

BHEL’s quarterly results were announced after market hours on Wednesday. The stock closed 3.39 per cent higher at Rs 245.39 apiece on the National Stock Exchange, outperforming the Nifty 50 index, which gained 0.45 per cent. Over the past 12 months, BHEL’s shares have risen 4.4 per cent and are up 6.9 per cent year-to-date.