Key Highlights
- Profit: Net profit rose 120.1% to ₹810 crore from ₹368 crore a year ago.
- Revenue: Up 23.8% to ₹9,300 crore.
- Margins: EBITDA margin expanded to 11% from 7.7%.
- Expansion: ₹500 crore capex for thermal and nuclear equipment manufacturing at Haridwar.
- Stock: Hit a record ₹463.60; up 99% in a year.
Bharat Heavy Electricals Limited (BHEL) reported a consolidated net profit of ₹810 crore for the September quarter (Q2 FY27), up 120.1% from ₹368 crore a year earlier. The state-run engineering major’s shares surged to a record high of ₹463.60 on Wednesday.
The Numbers
| Metric | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹9,300 cr | ₹7,511 cr | +23.8% |
| EBITDA | ₹1,026 cr | ₹581 cr | +76.6% |
| EBITDA margin | 11.0% | 7.7% | +3.3 pts |
| Net profit | ₹810 cr | ₹368 cr | +120.1% |
Why It Matters: Better Execution, Not Just More Orders
The most important number isn’t profit, it’s margins. BHEL’s EBITDA margin rose to 11% from 7.7%, meaning it is now keeping much more from every rupee of revenue. For a company that struggled with thin margins and execution delays for years, that signals better project delivery and pricing.
The timing is also telling. Demand for power equipment has picked up as India adds generation capacity to meet rising electricity demand, including from thermal plants and the country’s push to expand nuclear power. BHEL, as the country’s largest maker of such equipment, is a direct beneficiary.
Board Decisions
- ₹500 crore capex: Additional manufacturing facilities for thermal and nuclear equipment at the Heavy Electrical Equipment Plant (HEEP) in Haridwar, to meet growing demand from the power sector.
- Unit merger: The Electrical Machines Repair Plant in Mumbai will merge with the Electronics Division in Bengaluru from November 1, 2026.
A Standout Stock in a Weak Market
| Period | BHEL return |
|---|---|
| 2026 so far | +58% |
| 1 year | +99% |
| 5 years | +521% |
The stock has more than doubled from its 52-week low of ₹229.70 in September 2025. That stands in sharp contrast to the broader market: the Nifty has fallen about 11% between Navratri 2025 and Navratri 2026. BHEL’s rally shows how companies linked to infrastructure and power investment have stood apart in a difficult year.
One Point to Watch
Other expenses rose to ₹721 crore from ₹391 crore, according to the filing. Investors will watch whether costs stay in check as the company scales up.
The Bottom Line
BHEL has turned strong demand into real profits, with margins finally catching up. With fresh investment in nuclear and thermal capacity, the company is positioning itself for India’s next phase of power expansion.
With inputs from IANS.