State-run engineering major Bharat Heavy Electricals Ltd (BHEL) delivered a strong performance in the July–September 2025 quarter on October 29, 2025, marking a significant turnaround in profitability and operational growth. The company reported a net profit of ₹375 crore, compared with a loss of ₹455.5 crore in the previous quarter, signalling a robust recovery in the power equipment and industrial segments.
Financial Performance Overview
During the second quarter of FY26, consolidated revenue from operations rose 14% year-on-year to ₹7,512 crore, compared to ₹6,584 crore in Q2FY25. Sequentially, total revenue grew nearly 37%, reflecting improved project execution and demand revival in the power sector.
The company’s operating profit (EBITDA) more than doubled to ₹580.8 crore from ₹275 crore a year ago. Margins expanded to 7.7% in Q2FY26, up sharply from 4.2% in the same quarter last year, showcasing better cost efficiency and a focus on high-margin projects.
Segment-Wise Highlights
BHEL’s strong results were underpinned by healthy growth across both its core business segments:
- Power Segment: Revenue surged to ₹5,675.64 crore, marking a 45.6% rise from the previous quarter and a 12.9% year-on-year increase. The segment benefited from faster execution of large-scale power projects and renewed demand in the thermal equipment space.
- Industry Segment: Revenue climbed to ₹1,836.16 crore, up 15.6% sequentially and 18% year-on-year, supported by strong performance in the transmission, transportation, and renewable energy businesses.
Overall, total segment revenue reached ₹7,511.80 crore, a 36.9% sequential increase and a 14% year-on-year growth, highlighting a well-rounded performance across verticals.
Profitability and Margin Expansion
The company’s return to profitability marks a sharp improvement from both the preceding quarter and the same period last year. Net profit jumped 253% year-on-year, driven by stronger operational efficiency and improved execution capabilities.
Operating margins expanded by 350 basis points, supported by better cost control and a higher share of profitable projects in the order mix.
Market Outlook and Industry Positioning
Analysts and market watchers noted that BHEL’s Q2 results comfortably beat Street expectations on both profit and margins. The robust numbers reflect the company’s ability to execute projects efficiently amid a broader recovery in India’s capital goods sector.
The firm is also seen as well-positioned to benefit from India’s thermal capex revival, supported by an order backlog of over ₹2.2 lakh crore and fresh project wins in FY25. With the Central Electricity Authority revising thermal capacity expansion targets to 97GW by FY35, BHEL is expected to remain a key beneficiary of this growth cycle.
Also Read:
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- Coal India Q2 FY26 Results: Profit Falls 32% to ₹4,262 Crore, Revenue Slips 3.2% YoY
- Jindal Steel’s Q2 FY26 Results: Profit Declines 26% YoY, Revenue Grows 4% Amid Expansion Momentum
- Tata Capital Q2 FY26 Results: Profit Rises 2% YoY, Revenue Grows 8% in First Post-Listing Quarter
- TVS Motor Q2 FY26 Results: Record-Breaking Quarter with 42% Profit Growth and 25% Revenue Surge
Looking Ahead
BHEL’s turnaround in Q2 FY26 underscores its strengthened fundamentals, better project management, and improved cost structure. The company’s performance signals growing operational resilience and renewed investor confidence in India’s engineering and infrastructure revival.
As BHEL continues to focus on efficient execution, expanding margins, and leveraging upcoming opportunities in the thermal and industrial sectors, its outlook for the coming quarters appears positive and strategically well-aligned.
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