Bharat Heavy Electricals Limited

The engineering major's improving execution, expanding order book and healthy margin recovery support growth prospects, but much of the optimism appears priced into the stock

Revenue from operations rose 40.3 per cent to ₹7,697.72 crore, while the power segment returned to profit and total expenses increased 18.1 per cent year-on-year

Analysts expect limited impact on BHEL from the government's move to allow four Chinese electrical equipment companies to participate in PSU tenders for HV transformers and GIS equipment.

Zensar Technologies, CDSL, Bandhan Bank and MRPL from the Nifty Smallcap 100 index rallied between 5% and 12% in Friday's intra-day trade.

A robust order pipeline and long-term power-sector expansion support BHEL's growth outlook, but sustained margin gains and timely execution remain critical

Government review finds BHEL and SAIL falling short of the profitability threshold required for Maharatna status despite meeting turnover and net worth norms

Underground Coal Gasification (UCG), where coal is converted in situ without mining, is being piloted in Jharkhand

BHEL's strong Q4FY26 performance and robust order book are offset by concerns over valuations, execution challenges, and sustainability of margin gains

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State-owned BHEL on Monday posted a two-fold jump in consolidated net profit to Rs 1,290.47 crore during the quarter ended March 31, supported by growth in revenues. It had reported a net profit of Rs 504.45 crore in the same period a year ago, the company said in an exchange filing. During the fourth quarter, its total income surged to Rs 12,553.50 crore from Rs 9,142.64 crore in the January-March period of preceding 2024-25 financial year. For the entire FY26, the company's net profit jumped to Rs 1,600.26 crore from Rs 533.90 crore in the year ago. The board of the company also approved a final dividend of Rs 1.40 per share of Rs 2 each for the fiscal ended March 31, 2026. BHEL is India's largest engineering and manufacturing enterprise in the energy and infrastructure sectors.

In the past one month, the market price of BHEL has appreciated by 62 per cent, as compared to 5 per cent rise in the BSE Sensex.

With healthy revenue growth, a strong order book, and a sustained execution pipeline, BHEL enters FY2026-27 with solid momentum.

Jyoti CNC, Apar Ind, BHEL, Thermax, Kirloskar Oil Engines, Siemens Energy, ABB, CG Power and Hitachi Energy were up 2 per cent to 5 per cent on the BSE in Monday's intra-day trade.

The order book expansion to ₹2.4 trillion provides strong revenue visibility, with a book-to-bill of ~7.4x, ensuring multi-year execution pipeline and reducing earnings volatility, said analysts.

BHEL said it has signed a TCA with South Korea's E2S Company to strengthen its capabilities in excitation systems for synchronous machines

Under the relaxation of the rules, India's largest state-run power equipment maker Bharat Heavy Electricals can procure 21 types of critical equipment from China

With nearly 80 per cent of the order book anchored in the power segment, positioning the BHEL to benefit from India's renewed thermal capacity additions and infrastructure push, believe analysts.

Bharat Heavy Electrical share price fell over 6 per cent on Wednesday after the government said it would divesting up to 5 per cent shareholding in the company at ₹254 per share.

JM Financial said BHEL's margin improvement is likely in the coming quarters as the execution mix begins to skew towards newer projects

A healthy order pipeline due to limited competition in the power equipment industry has helped BHEL mitigate weak power demand in India during the quarter