Bharat Heavy Electricals Ltd (BHEL)
🎯 Key Takeaways
- BHEL is transitioning from a period of losses to sustained profitability, driven by strong order execution, sectoral diversification into nuclear, coal gasification, and green hydrogen, and a record order book exceeding ₹2.6 lakh crores.
- Revenue declined 37.5% QoQ to ₹7,698 in Q1FY27.
- ⚠️ 1) Execution risk in new sectors like green hydrogen and nuclear, where BHEL is still scaling capabilities and may face technical or regulatory delays
📖 The Story
BHEL is transitioning from a period of losses to sustained profitability, driven by strong order execution, sectoral diversification into nuclear, coal gasification, and green hydrogen, and a record order book exceeding ₹2.6 lakh crores. Management is actively repositioning the company around high-growth energy infrastructure segments, supported by strategic partnerships and government-aligned initiatives.
📰 What's Happening
In Q1 FY27, BHEL reported a 40% YoY revenue increase to ₹7,698 crores and a turnaround to PAT of ₹382 crores, up from prior losses, fueled by improved margins and execution. The order book grew 27% to ₹2,60,255 crores, providing long-term revenue visibility. A key development was the strategic collaboration with Hystar AS, Norway, to develop PEM electrolyser systems for green hydrogen, aiming for indigenization and local manufacturing. Additionally, India Ratings upgraded BHEL’s credit rating, reflecting improved financial resilience and debt-servicing capacity.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 7,512 | 8,473 | 12,310 | 7,698 |
| Operating Profit | 505 | 467 | 1,665 | 422 |
| OPM % | 6.7% | 5.5% | 13.5% | 5.5% |
| Net Profit | 375 | 390 | 1,290 | 377 |
| EPS | ₹1.08 | ₹1.12 | ₹3.71 | ₹1.08 |
The company’s financial performance shows a clear inflection point: revenue rose to ₹7,698 crores in Q1 FY27 from ₹12,310 crores in Q4 FY26 (seasonal dip aside), but more importantly, profitability improved with PAT of ₹382 crores and OPM of 5.5%, up from previous quarters. Despite lower revenue compared to Q4 (due to seasonality), margins stabilized and PAT turned positive, supported by cost discipline and higher order realization. The consistent growth in order book and export inflows (₹2,353 crores) underscores improving execution momentum.
🔮 Management Outlook & What's Next
Management highlighted continued growth through strategic initiatives in nuclear, coal gasification, and green hydrogen, with a specific target of integrating 500 GW of renewable energy by 2030. The partnership with Hystar AS is positioned as a catalyst to accelerate capabilities in green hydrogen, aligning with national energy transition goals. This suggests a multi-year growth runway beyond traditional power equipment, with emphasis on indigenization and export potential.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 696 | 696 | 696 | 696 |
| Reserves | 23,503 | 24,026 | 23,704 | 25,450 |
| Borrowings | 9,128 | 9,015 | 10,969 | 7,950 |
| Total Liabilities | 61,793 | 68,083 | 71,972 | 76,186 |
| Fixed Assets | 2,481 | 2,863 | 2,815 | 3,094 |
| Investments | 267 | 276 | 282 | 303 |
| Total Assets | 61,793 | 68,083 | 71,972 | 76,186 |
The balance sheet shows a stable equity base of ₹696 crores but rising reserves, indicating retained earnings are building up. Borrowings increased slightly to ₹7,950 crores from ₹9,015 crores in FY25, suggesting modest leverage growth, but total assets have expanded to ₹76,186 crores, reflecting capital investment and asset base growth. This points to a capital-intensive phase focused on scaling operations rather than aggressive deleveraging.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +5,837 |
| Investing | -3,035 |
| Financing | -1,806 |
| Net Cash Flow | +996 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 63.2% | 63.2% | 58.2% | 58.2% |
| FII | 6.2% | 6.3% | 7.2% | 9.5% |
| DII | 18.6% | 19.7% | 24.0% | 22.4% |
| Public | 10.7% | 9.5% | 9.3% | 8.3% |
| # Shareholders | 19,61,664 | 17,91,831 | 17,55,262 | 16,28,020 |
Promoter holding remains steady at 58.17%, indicating confidence in long-term prospects. However, FII ownership declined from 7.23% in Q4 FY26 to 9.51% in Q1 FY27, while DII increased from 19.69% to 22.43%, suggesting institutional investors are gradually accumulating. The growing number of retail shareholders (16.28 lakh) also reflects rising market interest. Overall, foreign institutional interest is stabilizing after a period of reduction.
⚖️ Peer Comparison — Capital Goods - Electrical Equipment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ABB | 1.57 L Cr | 52.7 | 26.5% | 38.1% | 0.00 |
| BHEL | 1.51 L Cr | 62.1 | 11.6% | 9.3% | 0.30 |
| POWERINDIA | 1.49 L Cr | 129.2 | 29.9% | 22.2% | 0.00 |
| SIEMENS | 1.44 L Cr | 43.9 | 14.2% | 23.7% | 0.00 |
| CGPOWER | 1.41 L Cr | 113.0 | 21.3% | 15.6% | 0.00 |
| GVT&D | 1.11 L Cr | 85.1 | 99.4% | 73.6% | 0.00 |
| WAAREEENER | 75,911 | 19.9 | 54.0% | 42.2% | 0.10 |
| APARINDS | 71,126 | 60.2 | 33.0% | 21.9% | 0.16 |
| SUZLON | 64,289 | 20.5 | 44.5% | 51.5% | 0.05 |
| THERMAX | 46,983 | 74.9 | 12.5% | 10.6% | 0.41 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Execution risk in new sectors like green hydrogen and nuclear, where BHEL is still scaling capabilities and may face technical or regulatory delays. 2) Margin sustainability amid rising competition and input cost pressures in capital goods. 3) Dependence on government order cycles and policy continuity for infrastructure and energy projects. 4) High P/E of 62.1 may limit investor tolerance for short-term volatility despite improving fundamentals.
📋 Recent Filings
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Announcement 26 August 2026BHEL disclosed that BSE and NSE imposed a combined fine of [amount not verified] for non-compliance with SEBI LODR norms related to board composition ...
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Announcement 25 August 2026Bharat Heavy Electricals Limited announced the superannuation of Shri Sumeet Salhotra, General Manager & Head of Corporate Office (COC), effective 24 ...
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🟡 related party transaction 13 August 2026BHEL announced a strategic collaboration with Hystar AS, Norway, to jointly develop PEM electrolyser systems for green hydrogen projects in India. The...
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🔴 Announcement 12 August 2026Bharat Heavy Electricals Limited announced that India Ratings & Research upgraded its credit rating, reflecting improved financial health and operatio...
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Announcement 31 July 2026BHEL disclosed a customs penalty of Rs. 385,729 and total fiscal impact of Rs. 928,872 for wrong Basic Customs duty availing, with an appeal option pe...
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Announcement 21 July 2026BHEL announced it will attend an investor meeting on July 24, 2026, at 9:00 am in Mumbai, where it will not present new material and will rely only on...
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🟡 Board Meeting 16 July 2026BHEL approved unaudited standalone financial results for Q1 June 2026, showing revenue of **₹7,928.52 crores** and net profit of **₹381.91 crores**. T...
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🔴 Financial Results 16 July 2026BHEL reported a 40% YoY revenue increase to **₹7,698 crores** in Q1 FY27, driven by a record order book of **₹26,745 crores** and improved cash collec...
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🔴 annual report 1 July 2026BHEL announced its 62nd Annual General Meeting on 5 August 2026, with a record date of 17 July 2026 for a final dividend of Rs. 1.40 per share (70% pa...
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🔴 Corporate Action 1 July 2026BHEL announced the record date of 17 July 2026 for a final dividend of Rs. 1.40 per share, representing a 70% payout on paid-up capital, to be paid by...
🧠 Analyst's Read
BHEL is undergoing a structural turnaround with improving profitability, strong order backlog, and strategic positioning in emerging energy segments. The next watchpoints are execution pace in green hydrogen, margin trajectory in core power segments, and capital allocation discipline as the company scales new businesses.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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