State-owned engineering giant Bharat Heavy Electricals Ltd (BHEL) has returned to profitability in the first quarter of the financial year 2026-27. The company reported a net profit of Rs 382 crore for the June 2026 quarter, a stark contrast to the Rs 455 crore loss recorded in the corresponding period of the previous year.
Strong Revenue Growth Driven by Power Segment
BHEL's revenue from operations saw a robust increase, surging by 40% year-over-year to reach Rs 7,698 crore. This significant growth was primarily fueled by a 52% rise in its power segment, indicating strong execution and demand within the thermal power capital expenditure cycle.
The improved financial performance suggests a positive trajectory for the public sector undertaking (PSU), reflecting successful project implementation and an uptick in its core business areas.
Market Reaction and Financial Details
Following the announcement of its Q1 earnings, BHEL shares experienced a positive movement, rising 3.5% to Rs 432.75 in the current trading session. This pushed the company's market capitalization to Rs 1.50 lakh crore.
Despite the overall positive results, the company's expenses also saw an increase, reaching Rs 1,506.33 crore in the last quarter compared to Rs 1,462 crore in the year-ago period. Earnings Per Share (EPS) for Q1 stood at Rs 1.10.
The strong performance in the power segment highlights BHEL's crucial role in India's energy infrastructure development and its capacity to capitalize on ongoing investments in the sector.