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BHEL shares hit near all-time highs after first Q1 profit in seven years
BHEL reported Q1FY27 net profit of ₹376.7 crore, while order inflows doubled year-on-year to ₹26,745 crore and the order backlog rose 27% to ₹2.6 trillion.
State-owned Bharat Heavy Electricals Ltd (BHEL) posted its first Q1 profit in seven years, lifting investor sentiment as the stock moved near an all-time high after a 50% gain over the past year. LiveMint Markets said BHEL reported consolidated net profit of ₹376.71 crore for the June quarter, supported by higher income.
The company also showed a sharp earnings improvement, with consolidated EBITDA of ₹504 crore after a year-ago loss of ₹537 crore, beating Street estimates. LiveMint Markets attributed the turnaround to stronger execution, including a 40% revenue increase to ₹7,700 crore and gross margin expanding 200 basis points year-on-year.
BHEL noted that seasonality still matters for results, with capital goods typically skewing toward the fourth quarter, which helped explain a sequential Ebitda margin drop to 6.5% in Q1FY27 from 14.2% in Q4FY26. LiveMint Markets also pointed to resumption of operations among a large part of its vendor base after shutdowns during FY19-23, along with advance planning to compress delivery timelines.
On the demand side, the latest quarter underlined the scale of its order pipeline, with Q1FY27 order inflow doubling year-on-year to ₹26,745 crore and the order backlog rising 27% to ₹2.6 trillion. LiveMint Markets said this backlog equals about 7.2 times BHEL trailing 12-month sales, and it highlighted that average annual order inflows rose to about ₹82,000 crore in FY24-26 from less than ₹15,000 crore during FY19-23.