Bharat Heavy Electricals posts 23.8% revenue growth and an 11% EBITDA margin in the second quarter, while its order book reaches ₹2.58 lakh crore.
Bharat Heavy Electricals Ltd. delivered a stronger-than-expected second quarter as higher execution across its power and industrial businesses pushed revenue up 23.8% year on year and lifted earnings before interest, tax, depreciation and amortisation margin to 11%, according to brokerage notes and results summaries cited by NDTV Profit, ICICI Direct and Moneycontrol. Profit after tax more than doubled to about ₹809 crore, while the company’s order pipeline remained substantial, with the outstanding book reported at a record ₹2.58 lakh crore at the end of September, reflecting the depth of demand visible across its core segments.
Prabhudas Lilladher, whose report was cited by NDTV Profit and Moneycontrol, said the Power division remained the main engine of growth, with revenue in that segment rising 17% year on year as BHEL worked through a large order book of about ₹2.1 lakh crore. ICICI Direct said the Industry business grew even faster, climbing 45% year on year, helping the company’s consolidated revenue reach ₹9,300.4 crore. The brokerage also noted fresh wins in hydroelectric projects, including Heo and Tato-I, as well as an FR6B gas turbine order, which broaden BHEL’s exposure beyond conventional thermal generation.
The improvement in profitability was equally striking. ICICI Direct said EBITDA rose 76.6% year on year to ₹1,026 crore, with the margin widening from 7.7% a year earlier to 11%. Another analysis cited by Sahi said gross margin improved sharply in the quarter, while cofacto.ai pointed to a further lift in the operating margin, though it also flagged elevated other expenses as a headwind. Taken together, the numbers suggest that BHEL is benefiting from better project execution and a healthier mix, even if some cost pressures remain visible.
The latest quarterly performance also gives the company more room to demonstrate whether its recent operational progress can be sustained. ICICI Direct said BHEL completed 2,260MW of capacity addition in the first half of FY27 against a full-year target of 4,790MW, indicating that execution momentum is improving. Even so, Prabhudas Lilladher kept a Reduce rating on the stock, albeit with a higher target price of ₹426, up from ₹368, arguing that the shares already reflect much of the near-term improvement after a strong rally. Livemint reported that the stock touched a record high after the results, and BHEL’s board separately approved a ₹500 crore manufacturing investment, underscoring management’s intent to support future growth.
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