Synopsis:
Bharat Heavy Electricals dropped sharply after it reported a 116% increase in losses YoY. Revenue remained flatish while EBITDA losses widened significantly.
The shares of this leading mahartna PSU stock are in focus as it dampened the confidence of the investors post its disappointing first quarter performance. In this article, we will dive more into the details,
With a market capitalization of Rs 78,259 crore, the shares of Bharat Heavy Electricals Ltd are currently trading at Rs 225 per share, representing a decline of 26.5 percent from its 52-week high of Rs 305.80. Over the past five years, the stock has delivered a robust return of 538 percent.
Q1 Highlights
BHEL reported a flatish revenue growth of 0.04 percent to Rs 5,487 crore in Q1 FY26 as compared to Rs 5,485 crore in Q1 FY25. Additionally, it declined 39 percent from its previous quarter revenue of Rs 8,993 crore.
The company reported an EBITDA loss of Rs 352 crore in Q1 FY26, a sharp increase of nearly 497 percent from the EBITDA loss of Rs 59 crore in the same period last year.
Now what’s more concerning is the widening of its losses. In Q1 FY25, it reported a net loss of Rs 211 crore, which widened to a loss of Rs 456 crore in Q1 FY26, which is a staggering increase of 116 percent. It reported a sharp turnaround from its profit of Rs 504 crore in its previous quarter.
In the first quarter of FY26, BHEL saw a remarkable order inflow of Rs 13,445 crore. The Power segment was the star performer, bringing in Rs 7,620 crore, which is about 57 percent of the total. Meanwhile, the Industry segment, including exports, contributed Rs 5,825 crore, making up the remaining 43 percent.
By June 30, 2025, BHEL’s total order book was a solid Rs 2,04,375 crore. The Power segment continued to lead the way with Rs 1,61,686 crore, representing 79 percent of the order book, while the Industry segment, including exports, accounted for Rs 42,689 crore, or 21 percent. This strong order backlog gives the company excellent revenue visibility for the upcoming quarters.
Bharat Heavy Electricals Limited (BHEL) stands out as a prominent Indian company specializing in power plant equipment, with a global footprint. The company operates primarily in two key sectors: Power and Industry.
It is known for supplying top-notch equipment, offering a range of services, and managing large-scale projects across coal, gas, hydro, and nuclear power plants. Additionally, it caters to various sectors, including transportation, defense, renewable energy, oil & gas, and e-mobility. Their extensive product lineup features turbines, generators, transformers, solar systems, and railway equipment.
Written by Satyajeet Mukherjee
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