Bharat Heavy Electricals Limited (BHEL)
Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing PSU, engaged in design, engineering, manufacture, erection, testing, commissioning and servicing of a wide range of products for Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas, and Defence sectors. Incorporated in 1964 and headquartered in New Delhi, BHEL is wholly owned/controlled by the Government of India (63.17% promoter holding). The company operates 17 manufacturing units, 2 repair units, 4 regional offices, 8 service centres, and 15 regional marketing centres across India. BHEL is the flagship CapEx arm of India’s power infrastructure expansion, with an all-time-high order book of ₹1,95,922 Crore as of March 2025.
Key Business segments
- Power: ~75% of revenue; thermal, hydro, nuclear turbines, boilers, generators
- Industry: Transformers, compressors, motors, drives, defense products
- Exports: Projects executed in 80+ countries; growing defense exports
- Renewables: Solar, wind turbine generators, battery storage — emerging segment
Financial Summary
| Particulars | Mar 2023 | Mar 2024 | Mar 2025 |
| Sales – | 23,365 | 23,893 | 28,339 |
| Sales Growth | 10.15% | 2.26% | 18.61% |
| Expenses + | 22,321 | 23,182 | 26,940 |
| Operating Profit | 1,044 | 711 | 1,399 |
| OPM % | 4% | 3% | 5% |
| Tax % | 9% | -16% | 28% |
| Net Profit + | 654 | 282 | 534 |
| EPS in Rs | 1.88 | 0.81 | 1.53 |
Final Outlook
Bharat Heavy Electricals Ltd (BHEL) reported FY25 consolidated revenue of ₹23,893 Cr, with net profit at ₹282 Cr and EPS ₹1.53; TTM figures improved to revenue ₹30,465 Cr and PAT ₹814 Cr (EPS ₹2.34). Quarterly momentum in Q3 FY26 showed revenue ₹8,473 Cr, EBITDA ₹772 Cr, and PAT ₹390 Cr, contributing to 9M FY26 revenue of ₹21,472 Cr and PAT ₹295 Cr. Key metrics include ROE 2.17%, debt/equity 0.36x, and P/E ~105x at 3.5x book value (₹70/share). The ₹2.2 lakh Cr order book underpins scale, with power segment driving ₹6,322 Cr in Q3 revenue.
Revenue follows Ind AS 115 phasing from EPC milestones, while profitability relies on gross margins offset by other income amid core OPM challenges. DuPont analysis highlights working capital cycle impacts (99 days), with ROE tied to turnover and leverage. Porter’s framework notes high entry barriers and PSU client dynamics. Diversification into HVDC, railways, and renewables reduces thermal reliance, supported by recent NTPC/Adani orders. Valuation via DCF emphasizes FCF from backlog conversion.
Short-term Q4 FY26 targets ~₹30,000 Cr revenue; FY27 inflows ~₹49,000 Cr amid capex revival. Consensus targets ₹225-₹375, with technical support ₹254-₹276. BHEL suits Hold for long-term infra exposure, leveraging order visibility and PSU stability – accumulate dips for upside potential.
