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Q1 disappointing, but BHEL's prospects likely to improve from Q3FY26

The performance was due to poor execution and on account of legacy fixed-price contracts in the power segment (where legacy contracts amount to 71 per cent of power segment revenues)

Bharat Heavy Electricals Ltd, BHEL
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However, Bloomberg indicates that some analysts see an upside till around the ₹335 mark. | Image: X/@BHEL_India

Devangshu Datta Mumbai
The performance of Bharat Heavy Electricals Ltd (Bhel) for the first quarter of 2025-26 (Q1FY26) was disappointing with revenue at ₹5,500 crore, Ebitda loss at ₹540 crore, and a net loss of ₹450 crore (₹210 crore loss in the year-ago period). Ebitda stands for earnings before interest, taxes, depreciation, and amortisation. This performance was due to poor execution and on account of legacy fixed-price contracts in the power segment (where legacy contracts amount to 71 per cent of power segment revenues).
 
But the order inflow (OI) is strong. Legacy backlog is nearing completion, which will mean better profitability in future.