Brokerages said Bharat Heavy Electricals Ltd.'s first-quarter earnings reflected stronger execution and improving operating performance after the company reported results that exceeded Bloomberg estimates on revenue, profit and margins. However, they said sustaining the improvement and maintaining order inflows will be critical.
BHEL reported consolidated net profit of Rs 378 crore for the quarter ended June, compared with a loss of Rs 456 crore a year earlier. Revenue rose 40.3% year on year to Rs 7,698 crore from Rs 5,487 crore, beating the Bloomberg estimate of Rs 6,129 crore.
The power segment remained the largest contributor to growth, with revenue rising to Rs 5,919.5 crore from Rs 3,898.9 crore a year earlier. Revenue from the industry segment increased to Rs 1,778.2 crore from Rs 1,588.1 crore.
BHEL Q1 Results (Consolidated, YoY)
- Revenue up 40.3% to Rs 7,698 crore versus Rs 5,487 crore. (Bloomberg Estimate: Rs 6,129 crore)
- Ebitda at Rs 504 crore versus Ebitda loss of Rs 537 crore. (Bloomberg Estimate: Rs 78.9 crore)
- Margin at 6.5%. (Bloomberg Estimate: 1.3%)
- Net profit at Rs 378 crore versus loss of Rs 456 crore. (Bloomberg Estimate: Rs 33.9 crore)
Here's what brokerages are saying after BHEL Q1 results announcement:
JPMorgan
- Maintain Underweight with TP of Rs 220
- Q1 P&L shows improved execution and margins
- Pace of order inflows likely to reduce sharply
- Current valuation adequately factors in long-term profit potential
Macquarie
- Maintain Underperform; Hike TP to Rs 315 from Rs 250
- Momentum at last; focus on sustainability
- New orders doubled over Q1FY26, improving revenue visibility
- Improved execution and margins
- Sustainability remains key
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