Bharat Heavy Electricals Ltd (BHEL) Q1 FY27 Results Update

16 Jul 2026 , 08:41 PM

Financial Performance

• Consolidated net profit: ₹378 crore in Q1 FY27.
  • Recovered sharply from a ₹456 crore loss in the same quarter last year.
  • Beat Bloomberg estimate of ₹33.9 crore.
• Revenue: ₹7,698 crore.
  • Increased 40.3% YoY from ₹5,487 crore.
  • Surpassed Bloomberg estimate of ₹6,129 crore.
• Other income: ₹214.1 crore.
  • Increased from ₹171.2 crore in Q1 FY26.
• Strong earnings growth was supported by higher execution, revenue expansion, and improved operational performance.

Operating Performance Improvement

• EBITDA: ₹504 crore.
  • Improved significantly from an EBITDA loss of ₹537 crore in the year-ago quarter.
  • Beat Bloomberg estimate of ₹78.9 crore.
• EBITDA margin: 6.5%.
  • Higher than Bloomberg estimate of 1.3%.
• The improvement reflects better cost management and stronger project execution.

Segment Performance

Power Segment

• Remained the key growth driver during the quarter.
• Revenue increased to ₹5,919.5 crore.
• Compared with ₹3,898.9 crore in Q1 FY26.
• Growth was driven by higher demand and execution in the power sector.

Industry Segment

• Revenue increased to ₹1,778.2 crore.
• Compared with ₹1,588.1 crore in the same period last year.
• Segment growth remained positive, supporting overall performance.

Key Highlights

• BHEL turned profitable in Q1 FY27 after reporting a loss in the previous year period.
• Revenue growth exceeded analyst expectations.
• EBITDA profitability improved significantly compared with the loss-making quarter last year.
• Both Power and Industry segments contributed to growth.
• Operating margins improved ahead of market expectations.

Receivables Update

• BHEL reported overdue trade receivables of ₹196 crore ($23 million) from customer STPG (formerly NEC Sudan).
• The amount remains outstanding due to the ongoing crisis in Sudan.
• The company continues to classify the receivable as recoverable.

Key Takeaways

• BHEL delivered a strong turnaround quarter with a shift from loss to profit.
• Robust revenue growth and improved margins indicate better operational execution.
• The Power segment remains the company’s primary growth engine.
• Strong Q1 performance exceeded market expectations on revenue, EBITDA, margins, and profitability.
• Investors will closely monitor order inflows, project execution, and resolution of overseas receivables going ahead.

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