BHEL Q2 Results: Net Profit Jumps 119% YoY to ₹821 Crore as Margins Expand

Key numbers

Market Cap	₹1,54,029 CrGeneral Industrials
PE TTM	63.32Sector PE 55.46
1-Year Return	84.59%Price Performance
RSI	57.3Neutral Zone

Key highlights

• Net profit surged 119.0% YoY to ₹821 crore from ₹375 crore in Q2-26
• Revenue from operations grew to ₹9,300 crore, a 23.8% increase YoY
• Operating margins nearly doubled to 11.4% from 6.5% in the previous year
• Power segment revenue contributed ₹6,637.90 crore to the standalone top line
• Order book stood at ₹2,60,000 crore as of June 2026, providing strong visibility

Execution Momentum Drives Triple-Digit Profit Growth

Bharat Heavy Electricals Limited reported a robust standalone and consolidated performance for the quarter ended 30 September 2026. The company’s consolidated net profit reached ₹821 crore, marking a 119.0% increase over the ₹375 crore recorded in the corresponding quarter last year. This growth was underpinned by a steady rise in revenue from operations, which climbed to ₹9,300 crore from ₹7,512 crore in Q2-26.

The sequential performance was equally strong, with net profit rising 117.9% compared to the ₹377 crore reported in the June 2026 quarter. Total income for the period stood at ₹9,553 crore, inclusive of ₹253 crore from other income sources.

Standalone Segmental Performance and Asset Base

• The Power segment generated standalone revenue of ₹6,637.90 crore, up from ₹5,675.64 crore YoY
• Industry segment revenue reached ₹2,662.45 crore, compared to ₹1,836.16 crore in Q2-26
• Standalone Profit Before Tax for the Power division stood at ₹858.37 crore for the quarter
• The Industry segment recorded a divisional profit of ₹518.71 crore as of September 2026
• Total Standalone Assets grew to ₹77,208.99 crore from ₹72,361.98 crore a year earlier
• Unallocated segment assets were valued at ₹16,062.78 crore in the latest filing

Operational Efficiency and Margin Expansion

BHEL witnessed a significant improvement in operational efficiency, with operating margins expanding to 11.4% in Q2-27 from 6.5% in the same quarter of the previous fiscal year. This expansion was achieved despite a rise in the cost of materials and services to ₹6,958.44 crore. Profit Before Tax (PBT) for the quarter more than doubled to ₹1,089 crore on a consolidated basis, compared to ₹499 crore in Q2-26.

The company's tax expense for the quarter included a deferred tax credit of ₹271.24 crore, contributing to the final bottom-line strength. This operational turnaround reflects the company's ability to convert its high-value order book into revenue more effectively.

Status of Sudan Receivables

Trade receivables includes overdue amount of Rs. 196 Cr (USD 23 million) from customer STPG (formerly NEC Sudan), stuck due to ongoing crisis in Sudan, has been considered good.

Market Context and Institutional Holding

The stock has demonstrated strong market performance with a one-year price appreciation of 84.59%, significantly outpacing its sector. BHEL currently maintains a high durability score of 90 and a momentum score of 71.66, classified as a strong performer. Institutional interest remains significant, with Mutual Funds holding 11.21% and Foreign Institutional Investors (FIIs) holding 9.94% as of the latest reporting period.

While the promoter holding remains steady at 58.17%, the company’s TTM Price-to-Earnings ratio of 63.32 reflects its premium valuation compared to the sector average, though it remains below its three-year average PE of 136.84.

What to watch next

• Targeting over ₹70,000 crore in fresh order inflows for the full FY27 fiscal year
• Monitoring the resolution and recovery of ₹196 crore in Sudan-related trade receivables
• Developments regarding the Bharat Coal Gasification and Chemicals Limited joint venture
• Q3 FY27 results announcement expected in January or February 2027

“The Unaudited Financial Results (Standalone and Consolidated) of Bharat Heavy Electricals Limited for the quarter ended 30th September, 2026, have been approved by the Board of Directors of the Company in its meeting held today, i.e., 14th October, 2026.”

Bharat Heavy Electricals · financial snapshot

Share price	₹442.35
Market capitalisation	₹1.54L Cr
Revenue (annual)	₹33,782.18 Cr
Net profit (annual)	₹1,600.26 Cr
Revenue (latest quarter)	₹7,697.72 Cr-37.47% vs previous quarter
Net profit (latest quarter)	₹376.71 Cr-70.81% vs previous quarter
P/E (TTM)	63.32×Sector 55.46×
Promoter holding	58.17%0.00% QoQ
FII holding	9.94%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.