BHEL Q2 Profit Jumps 120 Percent to Rs 810 Crore, Shares Hit Record

Bharat Heavy Electricals Limited had the kind of quarter its shareholders have waited years for. The state run power equipment maker reported a standalone net profit of Rs 810 crore for the September quarter, up 120 percent from Rs 368 crore a year earlier, and its shares surged to a record high on Wednesday.

Revenue from operations rose about 24 percent to Rs 9,300 crore, from Rs 7,512 crore in the same quarter last year. Profit before tax more than doubled to Rs 1,078 crore from Rs 492 crore. Operating performance improved sharply: earnings before interest, taxes, depreciation and amortisation rose about 77 percent to Rs 1,026 crore, and the EBITDA margin widened to 11 percent from 7.7 percent a year earlier.

The half year tells the bigger story

One strong quarter can be a fluke. Six months is harder to dismiss. For April to September, BHEL's net profit reached Rs 1,192 crore, a swing from a loss of Rs 87 crore in the same period last year, on revenue up 31 percent to Rs 16,998 crore. The turnaround is now a trend, driven by project execution and fatter margins rather than one off gains.

The market noticed. The stock touched a record near Rs 464 during the session and closed up about 4.9 percent, even on a day when the Nifty 50 ended lower. The share price has roughly doubled over the past year.

Spending on capacity, and a merger at home

The same board meeting made two forward looking decisions. BHEL will invest about Rs 500 crore in new manufacturing facilities for thermal and nuclear equipment sets at its Heavy Electrical Equipment Plant in Haridwar, a bet that India's power build out will keep ordering heavy kit. The board also cleared the merger of the Electrical Machines Repair Plant in Mumbai into the Electronics Division in Bengaluru, with the Bengaluru division continuing as the single merged unit from November 1, 2026.

Why it matters

BHEL is a bellwether for India's industrial capex. When its order driven factories run hot and margins expand, it signals that power sector spending, public and private, is turning into steel on the ground. The Haridwar investment says management expects that demand to last. The risk sits in the same place it always does for BHEL: execution. A fat order book only becomes profit if projects ship on time, and the company's history on that front is mixed.

What happens next is the December quarter, where investors will look for the margin holding at or near 11 percent and for fresh order announcements to feed the Haridwar expansion. If both land, the record share price starts to look less like a spike and more like a re rating.