Shares of Bharat Heavy Electricals Limited (BHEL) rallied sharply by over 10% after the company reported robust financial performance for the quarter ended March 31, 2026 (Q4 FY26). The strong rally was driven by a sharp jump in profitability, improved margins, and solid growth in its core power segment.
BHEL delivered impressive revenue growth during the quarter, with revenue from operations rising 36.87% YoY to ₹12,310.37 crore compared to ₹8,993.37 crore in the same period last year. Total income also increased significantly to ₹12,562.49 crore from ₹9,152.16 crore, reflecting strong order execution and demand momentum.
The standout performance came at the bottom line level. Net profit surged 154.47% YoY to ₹1,282.68 crore, up from ₹504.05 crore in Q4 FY25. This sharp rise highlights improved operational efficiency and better cost management despite rising expenses.
Total expenses for the quarter rose to ₹10,842.69 crore from ₹8,448.14 crore, mainly due to higher material costs and employee expenses. However, expense growth remained lower than revenue growth, supporting margin expansion.
At the operating level, EBITDA more than doubled to ₹1,753.10 crore from ₹831.68 crore, registering a growth of 110.79%. EBITDA margin improved significantly to 14.24% compared to 9.25% in the year-ago quarter, indicating strong operating leverage and better cost absorption.
Finance costs saw a slight decline to ₹197.52 crore from ₹201.43 crore, while depreciation and amortisation expenses increased marginally to ₹87.90 crore from ₹85.02 crore. Profit before tax (PBT) rose sharply to ₹1,719.80 crore versus ₹704.02 crore a year earlier, while earnings per share (EPS) increased to ₹3.68 from ₹1.45.
Segment-wise, BHEL’s power business remained the key growth engine. Revenue from the power segment surged to ₹9,509.85 crore from ₹6,192.41 crore in the corresponding quarter last year. The segment also recorded a massive jump in profit to ₹1,869.90 crore from ₹308.11 crore, driven by strong execution and improved margins.
On the other hand, the industry segment remained largely flat, with revenue at ₹2,800.52 crore compared to ₹2,800.96 crore a year ago. Segment profit declined to ₹673.03 crore from ₹877.32 crore, reflecting weaker performance in non-power businesses.
Overall, segment profit before tax and finance cost stood at ₹2,542.93 crore, more than doubling from ₹1,185.43 crore in Q4 FY25, underscoring the strength of BHEL’s core operations.
In a positive move for shareholders, the company’s Board recommended a final dividend of ₹1.40 per equity share of ₹2 each (70% of paid-up share capital) for FY26. The dividend will be paid within 30 days of approval at the Annual General Meeting.