Bharat Heavy Electricals Limited Earnings Summary — Q1 FY2027
BHEL Achieves Dramatic Turnaround in Q1 FY27 with Net Profit of ₹382 Crore
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 37.5% sequentially in Q1 FY2027.
- Revenue of ₹7,698 Cr is 40.3% higher year-on-year.
- Revenue has compounded at -3.1% annualised over the last 10 quarters.
- Net profit of ₹377 Cr is 182.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -13.9% annualised across the period.
- Operating margin stands at 6.5% in Q1 FY2027.
- Operating margin expanded by 1634 bps year-on-year.
- Over the last two years operating margin has expanded by 964 bps.
- PBT margin is 6.6%.
- Expense growth of 19.4% remained below revenue growth of 40.3%.
- Operating profit of ₹504 Cr is 193.8% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 58/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 7,698 | 12,310 | 8,473 | 7,512 | 5,487 | 8,993 | 7,277 | 6,584 | 5,485 | 8,260 |
| Expenses | Stable | 7,194 | 10,557 | 7,928 | 6,931 | 6,024 | 8,162 | 6,973 | 6,309 | 5,654 | 7,532 |
| Operating Profit | Volatile | 504 | 1,753 | 545 | 581 | -537 | 832 | 304 | 275 | -169 | 728 |
| Operating Margin | Volatile | 6.5% | 14.2% | 6.4% | 7.7% | -9.8% | 9.3% | 4.2% | 4.2% | -3.1% | 8.8% |
| Other Income | Improving | 226 | 260 | 235 | 189 | 185 | 159 | 126 | 128 | 111 | 170 |
| Interest | Stable | 140 | 198 | 182 | 195 | 181 | 201 | 184 | 201 | 162 | 193 |
| Depreciation | Stable | 82 | 88 | 78 | 75 | 75 | 85 | 68 | 60 | 59 | 68 |
| Profit Before Tax | Volatile | 508 | 1,728 | 520 | 499 | -608 | 704 | 179 | 141 | -279 | 636 |
| Tax | Volatile | 131 | 437 | 129 | 124 | -153 | 200 | 44 | 35 | -68 | 147 |
| Net Profit | Volatile | 377 | 1,290 | 390 | 375 | -455 | 504 | 135 | 106 | -211 | 490 |
| Net Margin | Volatile | 4.9% | 10.5% | 4.6% | 5.0% | -8.3% | 5.6% | 1.9% | 1.6% | -3.9% | 5.9% |
Key Takeaways
- BHEL reported a significant turnaround to a net profit of ₹381.91 crore in Q1 FY27 from a loss of ₹454.89 crore in the same period last year.
- Revenue from operations grew by 40.3% YoY to ₹7,697.72 crore, driven largely by the Power segment.
- The Power segment remains the dominant contributor, generating ₹5,919.50 crore in revenue this quarter compared to ₹3,898.86 crore YoY.
- Operating efficiency improved significantly with an operating profit ratio of 6.55% against a negative (9.79)% in the previous year's first quarter.
- The Industry segment also showed growth, with revenue rising to ₹1,778.22 crore from ₹1,588.05 crore YoY.
- The company successfully repaid all commercial papers, ending the quarter with a Nil balance of listed commercial paper debt.
- A potential risk was noted regarding ₹196 crore overdue from Khartoum North Power Station (Sudan) due to the ongoing regional crisis.
Management Guidance
Management focus remains on executing the order book in the power and industry sectors while maintaining a strong liquidity profile as evidenced by the CARE A1+ rating.
Sentiment Shift
Improving
The company has transitioned from a loss-making first quarter in the previous year to a substantial profit, showcasing better execution and margin management.
Outlook
The outlook appears strong for the Power segment which saw a major swing from a segment loss of ₹510 crore YoY to a profit of ₹562 crore this quarter.
From the Annual Report (Key Quotes)
“The results were directly placed in the Board Meeting held on 16.07.2026 and were reviewed & approved by the Board of Directors.”
“Trade receivables includes overdue amount of Rs.196 Cr... stuck due to ongoing crisis in Sudan, has been considered good.”
“The Company has retained 'CARE A1+' rating... for Commercial Paper.”
Official Quarterly Documents
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This summary is AI-generated from Bharat Heavy Electricals Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.