BHEL Q1 FY27 Results: Net Profit Rebounds to ₹376.71 Crore as Power Segment Stages Major Turnaround

Engineering and manufacturing giant Bharat Heavy Electricals Limited (BHEL) today announced its unaudited consolidated financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The state-run enterprise staged a massive financial turnaround, reversing a steep net loss from the corresponding period last fiscal year, fueled by a sharp recovery in project execution within its core power segment.

Income Rebound and Back-to-Profit Growth

BHEL demonstrated robust operational momentum during the three-month window, characterized by an expansion in core project execution and manufacturing revenue:

Revenue from Operations: Settled at ₹7,697.72 crore for Q1 FY27, registering a spectacular 40.3% year-on-year (YoY) surge against the ₹5,486.91 crore reported in the first quarter of the previous fiscal year. Sequentially, revenue experienced a cyclical decline of 37.5% from the peak billing cycle of ₹12,310.37 crore achieved in Q4 FY26.

Total Income: Aggregated to ₹7,911.86 crore, supported by other corporate income of ₹214.14 crore.

Net Financial Turnaround: The engineering major posted a consolidated Net Profit of ₹376.71 crore for the quarter, completely reversing the deep net loss of ₹455.50 crore logged in the year-ago base quarter. On a sequential basis, profits normalized downward from ₹1,290.47 crore in the immediate preceding quarter ended March 31, 2026.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter bounced back into positive territory at ₹1.08 per share (face value of ₹2 each), rising significantly from a negative EPS of ₹1.31 in Q1 FY26.

Segment-Wise Performance Analysis

The core engine of BHEL's corporate revival was its heavily weighted power business division, which returned to structural profitability:

Power Segment: Segment revenue jumped 51.8% YoY to ₹5,919.50 crore, up from ₹3,898.86 crore in Q1 FY26. The segment posted an exceptional turnaround in profitability before tax and finance costs, yielding a positive profit of ₹562.81 crore, compared to a severe segment loss of ₹510.00 crore in the year-ago quarter.

Industry Segment: Revenue from the industrial division grew steadily by 12.0% YoY to ₹1,778.22 crore, up from ₹1,588.05 crore. Segment profits before tax and finance charges settled at ₹242.61 crore, compared to ₹306.84 crore in the base quarter of last fiscal year.

Expenditure Matrix and Operational Metrics

The escalation in project installations required higher raw component outlays, which were balanced by internal overhead management:

Total Expenses: Settled at ₹7,415.62 crore during the quarter under review, compared to ₹6,279.78 crore in the year-ago quarter.

Materials and Services: Costs for materials and operational services rose to ₹5,839.29 crore from ₹4,127.98 crore YoY, which was partly offset by an inventory adjustment reduction of minus ₹542.55 crore for finished and work-in-progress assets.

Employee Benefits: Staff overheads stood at ₹1,506.33 crore, rising moderately from ₹1,462.46 crore in Q1 FY26.

Finance and Interest Costs: Financing expenses decreased significantly by 22.8% YoY to ₹139.88 crore, down from ₹181.21 crore, indicating optimized working capital management and reduced debt serving strain. Other operational expenses fell sharply to ₹390.79 crore from ₹675.05 crore in the base year.

Financial Base and Balance Sheet Status

BHEL's consolidated profit before tax landed at ₹507.70 crore, including a ₹11.46 crore share of net profit from corporate joint ventures. Total corporate tax provisions for the quarter came to ₹130.99 crore, comprising a current tax obligation of ₹1.90 crore and a deferred tax charge of ₹129.09 crore. Total comprehensive income for the quarter arrived at ₹324.62 crore after factoring in minor negative other comprehensive adjustments of ₹52.09 crore.

The paid-up equity share capital base of the Maharatna PSU remained unchanged at ₹696.41 crore, consisting of fully paid equity shares of face value ₹2 each, while total other equity reserves expanded to ₹25,774.81 crore.

Shares of Bharat Heavy Electricals Limited was last trading in BSE at Rs. 421.90 as compared to the previous close of Rs. 435.40. The total number of shares traded during the day was 2619192 in over 34454 trades.

The stock hit an intraday high of Rs. 446.75 and intraday low of 420.25. The net turnover during the day was Rs. 1145201068.00.

Source : Equity Bulls

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BharatHeavyElectricals INE257A01026 BHEL Q1FY27 Q1FY2027 ResultUpdate