India's BHEL posts first Q1 profit in eight years on thermal push
India's state-run power equipment maker BHEL returned to quarterly profitability for the first time since 2019, driven by a massive expansion in the country's thermal energy targets that has brokerages positioning the stock for further gains.
Bharat Heavy Electricals Limited (BHEL) posted a consolidated net profit of Rs 377 crore for the April-June quarter, reversing a year-earlier loss of Rs 455.5 crore. The Indian state-owned engineering heavyweight drove this return to the black through a 40% year-on-year surge in revenue, which reached Rs 7,697.72 crore from Rs 5,486.91 crore.
The quarterly results reveal a significant improvement in operational efficiency. BHEL’s operating profit margin swung sharply to 6.69%, up from a negative 9.54% in the same period last year, lifting the net profit margin to 4.89%. The company’s net worth grew more than 9% year-on-year to Rs 26,471 crore, with earnings per share coming in at Rs 1.08.
Equity markets reacted strongly to the earnings, pushing BHEL shares to a 52-week high of Rs 446.50 on Friday before mild profit-taking occurred. The stock has now risen more than 43% in 2026 alone, capping a spectacular multi-year run that includes a 67% return over one year, a 336% gain over three years, and a 561% surge over five years.
For market professionals, the critical takeaway is the validation of a long-anticipated turnaround driven by government infrastructure policy. JM Financial named BHEL among its top five picks, citing a major upward revision in India’s power generation targets. The brokerage noted that the country's goal for thermal power additions has expanded from an original 97 gigawatts to more than 110GW, securing a massive order pipeline for BHEL's core business.
ICICI Securities also highlighted the strategic importance of the earnings report. The firm pointed out that BHEL has started the current financial year with considerable momentum, marking the first time the company has generated a net profit in the first quarter since fiscal year 2019. The combination of surging order visibility and finally translating top-line growth into bottom-line profitability explains the sustained premium investors are placing on the stock.
