BHEL Financial Breakdown: Revenue, Profit, Ratios
Bharat Heavy Electricals Ltd (BHEL) announced its Q2 FY27 results on 14 October 2026: consolidated net profit of Rs 820.94 crore, up 119% year-on-year, and revenue from operations of Rs 9,300.35 crore, up 23.8% year-on-year. This article breaks down BHEL's five-year financial performance — revenue growth, profitability, margins, balance sheet strength, the all-important order book, segment split, shareholding, dividends — and compares it with its capital-goods peers. All figures are stated with their period and basis; annual figures below are standalone unless noted.
Business Overview
BHEL is a Maharatna central public sector enterprise under the Ministry of Heavy Industries and India's largest power equipment manufacturer. It is an integrated power-plant equipment maker engaged in design, engineering, manufacture, erection, testing, commissioning and servicing of products and services for the power, transmission, industry, transportation, renewable energy, oil & gas and defence sectors. The company operates 15 manufacturing facilities and two repair units, and its installed equipment accounts for a majority of India's thermal power capacity. Its joint ventures include BHEL-GE Gas Turbine Services, Bharat Coal Gasification and Chemicals (with Coal India), Raichur Power Corporation (with Karnataka Power Corporation) and NTPC-BHEL Power Projects (with NTPC). The Government of India held 58.17% of the equity as of September 2026.
Q2 FY27 Results (Announced 14 October 2026)
For the quarter ended 30 September 2026, BHEL reported (consolidated, per its exchange filing):
| Metric (Q2 FY27) | Q2 FY27 | Q2 FY26 | YoY |
|---|---|---|---|
| Revenue from operations | Rs 9,300.35 cr | Rs 7,511.80 cr | +23.8% |
| Total income (incl. other income) | Rs 9,553.01 cr | Rs 7,686.41 cr | +24.3% |
| Total expenses | Rs 8,482.40 cr | Rs 7,201.54 cr | +17.8% |
| EBITDA | Rs 1,026 cr | Rs 581 cr | +76.7% |
| EBITDA margin | 11% | 7.7% | +330 bps |
| Profit before tax | Rs 1,089.07 cr | Rs 499.23 cr | +118.1% |
| Net profit (PAT) | Rs 820.94 cr | Rs 374.89 cr | +119% |
| EPS | Rs 2.36 | Rs 1.08 | +118.5% |
| Other income | Rs 252.66 cr | Rs 174.61 cr | +44.9% |
Key highlights: profit more than doubled for the second consecutive quarter — Q1 FY27 PAT was Rs 376.71 crore (consolidated), and standalone Q2 FY27 PAT was Rs 809.62 crore, up 120% YoY. For the first half of FY27 (April–September), BHEL posted a net profit of Rs 1,192 crore against a net loss of Rs 87 crore in H1 FY26, with half-year revenue of Rs 16,998 crore, up 30.8% YoY. The results beat Street estimates (NDTV Profit had pegged PAT at Rs 756 crore and revenue at Rs 8,319 crore). Alongside the results, the board approved a Rs 500 crore investment for additional thermal and nuclear set manufacturing facilities at its Haridwar unit (HEEP), and approved merging the Electrical Machines Repair Plant (Mumbai) with the Electronics Division (Bengaluru) into a single unit effective 1 November 2026. The stock jumped about 4–5% after the announcement to a fresh 52-week high of around Rs 463.
Revenue and Growth Trend: FY22 to FY26
BHEL's standalone revenue grew from Rs 21,211 crore in FY22 to Rs 33,782 crore in FY26 — a four-year CAGR of roughly 12%, with the big acceleration coming in FY25–FY26 as thermal power orders started converting into execution (figures from Screener.in, standalone):
| Financial year | Revenue (Rs cr) | Operating profit (Rs cr) | Operating margin | Net profit (Rs cr) | EPS (Rs) |
|---|---|---|---|---|---|
| FY22 | 21,211 | 830 | 3.9% | 410 | 1.18 |
| FY23 | 23,365 | 1,044 | 4.5% | 624 | 1.79 |
| FY24 | 23,893 | 711 | 3.0% | 260 | 0.75 |
| FY25 | 28,339 | 1,399 | 4.9% | 513 | 1.47 |
| FY26 | 33,782 | 2,572 | 8.0% | 1,578 | 4.53 |
FY26 was the breakout year: revenue grew 19.2% and net profit nearly tripled to Rs 1,578 crore, driven by a strong Q4 FY26 (revenue Rs 12,310 crore, PAT Rs 1,283 crore, operating margin 14%). The company also reported a provisional full-year FY26 turnover of about Rs 32,350 crore, up 18% over FY25. Q2 FY27's Rs 9,300 crore quarter shows the momentum continuing into the new financial year.
Profitability and Margins
BHEL's margin profile has improved sharply but remains structurally thinner than its private-sector peers — typical of a PSU EPC business:
| Margin metric | FY22 | FY24 | FY26 | Q2 FY27 |
|---|---|---|---|---|
| Operating (EBITDA) margin | 3.9% | 3.0% | 8.0% | 11.0% |
| Net profit margin | 1.9% | 1.1% | 4.7% | 8.8% |
| Return on equity (ROE) | — | — | 6.0% | — |
| Return on capital employed (ROCE) | 3% | 3% | 9.0% | — |
ROCE has tripled from 3% to 9% over two years and ROE stands at about 6% (Screener, October 2026). The direction is positive, but both are still far below peers such as Siemens Energy India (~40% ROCE) and ABB India (~30% ROCE) — the gap reflects BHEL's lower-margin, working-capital-heavy EPC model. The key trend to watch is whether the Q2 FY27 11% EBITDA margin — driven by higher-margin project execution and better fixed-cost absorption — is sustained.
Balance Sheet and Ratios (FY26)
- Leverage: borrowings of Rs 8,187 crore against net worth of Rs 26,516 crore (equity capital Rs 696 crore + reserves Rs 25,820 crore) — a debt-to-equity ratio of about 0.31x, modest for a capital-goods PSU.
- Book value: Rs 77.9 per share; the stock trades at about 5.95x book value (Screener, 14 Oct 2026).
- Cash generation: FY26 operating cash flow was a strong Rs 5,837 crore, against an investing outflow of Rs 3,035 crore (capacity and project investments), leaving free cash flow of about Rs 5,261 crore — a sharp improvement from Rs 1,902 crore in FY25.
- Working capital: the strain point — debtor days 73, inventory days 309, and a cash conversion cycle of 151 days in FY26. Collections from state utilities and project clients are slow, though FY26's strong operating cash flow shows improvement.
- Valuation (14 Oct 2026): market capitalisation about Rs 1.62 lakh crore, trailing P/E of about 56.5x (Screener), with the stock up roughly 100% over the past year and ~58–61% year-to-date in 2026.
Order Book: The Key Metric for BHEL
For an order-based EPC company, the order book is the single most important number — and it is BHEL's biggest strength:
| Period | Outstanding order book | Order inflow |
|---|---|---|
| End-FY25 | ~Rs 1.96 lakh cr | — |
| End-FY26 | ~Rs 2.39 lakh cr | ~Rs 75,000 cr |
| Q1 FY27 (Jun 2026) | ~Rs 2.60 lakh cr | Rs 26,745 cr |
| Q2 FY27 (Sep 2026) | ~Rs 2.58 lakh cr | — (not disclosed yet) |
FY26 order inflows of about Rs 75,000 crore comprised roughly Rs 59,000 crore in the power segment and Rs 16,000 crore in the industry segment (transportation, transmission, defence, process industries). The book-to-bill ratio improved to 7.1x in FY26 (from 6.9x in FY25 and 5.5x in FY24), giving multi-year revenue visibility. In Q1 FY27 alone, inflows were Rs 26,745 crore — including the marquee Rs 21,000+ crore Meja 3×800 MW EPC order and a Rs 2,000–2,500 crore export contract for gas turbine generators. The power segment accounts for about 80% of the order book, with industry making up most of the rest. On the execution side, BHEL commissioned or synchronised about 8.9 GW of power capacity in FY26. No major Q2 order wins were disclosed on exchanges, so fresh inflows will be a key monitorable in coming quarters.
Segment Split: Power vs Industry
BHEL reports two segments. Power is the core (~71% of Q2 FY27 revenue); Industry is growing much faster:
| Segment (Q2 FY27) | Revenue (Rs cr) | YoY growth | Share of revenue | Segment EBIT (Rs cr) |
|---|---|---|---|---|
| Power | 6,637.90 | +17% (Rs 5,675.64 cr) | ~71% | 858 (+44%) |
| Industry | 2,662.45 | +45% (Rs 1,836.16 cr) | ~29% | 519 (+85%) |
The industry segment's 85% surge in EBIT shows the diversification push — transportation, transmission, defence and process industries — is paying off with better margins than the core power EPC business.
Shareholding Pattern (September 2026)
| Shareholder category | Holding (Sep 2026) |
|---|---|
| Promoter — Government of India | 58.17% |
| Domestic institutional investors (DIIs) | 21.80% |
| Foreign institutional investors (FIIs) | 9.94% |
| Public & others | 10.02% |
| No. of shareholders | 16,04,120 |
The government's stake fell from 63.17% to 58.17% in the March 2026 quarter through a stake sale — a typical PSU disinvestment move — while DII holdings rose to 21.80%, indicating rising domestic institutional interest in the stock.
Dividend History
BHEL has paid a final dividend every year since FY22 (face value Rs 2 per share):
| Financial year | Final dividend per share | Total payout |
|---|---|---|
| FY22 | Rs 0.40 | — |
| FY23 | Rs 0.40 | — |
| FY24 | Rs 0.25 | — |
| FY25 | Rs 0.50 | Rs 174.10 cr |
| FY26 | Rs 1.40 (70%) | Rs 487.49 cr |
The FY26 final dividend of Rs 1.40 per share (announced 4 May 2026, paid in July 2026) was nearly 3x the FY25 payout — the government alone received Rs 283.56 crore, more than 2.5x the Rs 109.98 crore it received for FY25. Dividend yield is modest at about 0.30%, since the payout is small relative to the current market price.
Peer Comparison
BHEL is by far the largest of the listed capital-goods peers by revenue and order book, but it trades at a discount on P/E while trailing on returns:
| Company | Revenue (Rs cr) | Net profit (Rs cr) | P/E (Oct 2026) | ROCE |
|---|---|---|---|---|
| BHEL | 33,782 (FY26) | 1,578 | 56.5x | 9.0% |
| Siemens Energy India | 9,437 (TTM) | 1,489 | ~74x | ~40% |
| ABB India | 13,203 (CY2025) | 1,668 | 96.3x | 29.9% |
| Hitachi Energy India | 8,148 (FY26) | 988 | ~117x | 22.4% |
| Thermax | 6,518 (FY26) | 649 | 76.1x | 15.6% |
Notes: P/E and ROCE are live-market figures as of 14 October 2026 (Screener/Finnhub data); revenue and PAT are the latest reported annual figures — ABB India follows a December year-end. BHEL figures are standalone; its scale dwarfs peers, but its returns-on-capital are the lowest of the group.
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Key Risks
- Working capital strain: a 151-day cash conversion cycle and 309 inventory days tie up large amounts of cash; delayed payments from state utilities and project clients are a perennial EPC risk.
- Thin margins: even after the turnaround, an 8% operating margin and 4.7% net margin are far below private peers (ABB ~15%, Siemens Energy ~19–24%) — the Q2 FY27 11% margin needs to be sustained to justify the rerating.
- Order concentration: about 80% of the order book is in thermal power; a slowdown in India's thermal capex revival would hit inflows directly.
- Execution risk: mega EPC orders such as the Rs 21,000+ crore Meja project must be executed on time and at the margins assumed; the margin profile of newly secured thermal orders is a key monitorable.
- PSU overhang: further government stake sales (the holding already fell 5 points in the March 2026 quarter) and policy dependence add volatility.
- Valuation: at ~56.5x earnings and ~5.95x book value after a ~100% one-year rally, the stock is priced for a flawless continuation of the turnaround.
Conclusion
BHEL's transformation from a loss-making-in-spots PSU to a high-growth capital-goods play is now visible in the numbers: revenue up 19% in FY26, net profit nearly tripled, operating cash flow of Rs 5,837 crore, a record Rs 2.6 lakh crore order book giving ~7x revenue visibility, and now back-to-back quarters of 119–120% profit growth in FY27. The Q2 FY27 beat — revenue ahead of estimates and margin expanding to 11% — confirms the operating leverage story as the huge order book converts into execution. Against this stand real constraints: thin single-digit margins versus 20%+ at private peers, a 151-day cash conversion cycle, heavy dependence on thermal power orders, and a demanding ~56x P/E after a 100% one-year rally. Whether the current margin trajectory sustains through H2 FY27 will decide if the rerating has further room.
FAQs
What was BHEL's Q2 FY27 net profit?
Consolidated net profit was Rs 820.94 crore for the quarter ended 30 September 2026, up 119% year-on-year from Rs 374.89 crore. Standalone net profit was Rs 809.62 crore, up 120%.
What is BHEL's order book value?
About Rs 2.58 lakh crore at the end of Q2 FY27 (September 2026), per the company's supplementary filing. It stood at ~Rs 2.60 lakh crore at end-Q1 FY27 and ~Rs 2.39 lakh crore at end-FY26.
Who owns BHEL?
The Government of India holds 58.17% of the equity as of September 2026, making BHEL a Maharatna central public sector enterprise. DIIs hold 21.80% and FIIs 9.94%.
What dividend did BHEL pay for FY26?
A final dividend of Rs 1.40 per share (70% on the Rs 2 face value), announced in May 2026 — a total payout of Rs 487.49 crore, nearly 3x the FY25 payout of Rs 174.10 crore.
Is BHEL debt-free?
Not quite, but leverage is modest — borrowings of Rs 8,187 crore against a net worth of Rs 26,516 crore give a debt-to-equity ratio of about 0.31x as of FY26.
What are BHEL's two business segments?
Power (about 71% of Q2 FY27 revenue, including thermal, hydro and nuclear equipment and EPC) and Industry (about 29%, including transportation, transmission, defence and process industries).
Sources: BHEL Q2 FY27 exchange filing via ET Now, NDTV Profit, ETEnergyWorld and Business Standard (14 Oct 2026); annual financials, ratios and shareholding from Screener.in; order-book data from Business Standard and the ICICI Direct Q1 FY27 result note; dividend history from Financial Express and News18 (ANI).
This article is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment adviser before making investment decisions.