Financial Performance Highlights

Bharat Heavy Electricals Limited (BHEL) reported outstanding financial results for FY 2025-26 with revenue from operations growing 19% to ₹33,782 crore from ₹28,339 crore in FY25. Profit after tax surged 208% to ₹1,578 crore from ₹513 crore, while EBITDA increased 83% to ₹3,189 crore. The company maintained a debt-free status with strong cash generation of ₹5,827 crore from operations, representing 176% YoY growth. Earnings per share improved to ₹4.53 from ₹1.47 in the previous year.

Operational Excellence and Order Book

BHEL achieved a record order book position of ₹2,39,057 crore as of March 31, 2026, with order inflows of ₹75,916 crore during the year. The company commissioned approximately 8.9 GW of power capacity and improved manufacturing capacity utilization by 25%. Working capital management showed significant improvement with trade receivables reducing to 100 days of revenue (from 115 days) and trade payables to 165 days (from 201 days). Cash collection reached ₹46,425 crore, representing 143% of revenue.

Strategic Diversification and Business Segments

The Power segment contributed 75% of revenue (₹25,407 crore) while the Industry segment contributed 25% (₹8,375 crore). Strategic diversification initiatives yielded significant results with entry into coal gasification (₹8,288 crore order), defence (delivery of 4 upgraded SRGMs to Indian Navy), and rail transportation (maiden Kavach signalling order). The company maintained market leadership with 54% share in thermal power, 60% in nuclear power, and 43% in hydro power installed capacity.

R&D and Technological Innovation

BHEL invested ₹822 crore in R&D (2.4% of revenue), filing 428 patents and copyrights during the year. The cumulative IP portfolio reached 6,068, with 14% of revenue generated from in-house developed products. Key technological achievements included developing advanced compressor casing for refinery projects, weight reduction in condenser units, indigenous planetary gearbox development, and 240 kW DC fast EV chargers.

Joint Ventures and Investments

The company maintained investments in key joint ventures including BHEL-GE Gas Turbine Services (49.99% stake, revenue ₹1,240 crore, PAT ₹127 crore), NTPC BHEL Power Projects (50% stake, losses ₹27 crore), Raichur Power Corporation (22.14% stake, revenue ₹3,800 crore, losses ₹1,814 crore), and Bharat Coal Gasification (49% stake, pre-operational phase). Total investment in joint ventures stood at ₹677 crore with provision for impairment of ₹51 crore.

Corporate Governance and Shareholding

Government holding reduced to 58.17% from 63.17% after a 5% stake sale via OFS in February 2026. The company faced SEBI compliance issues regarding independent director shortfall, citing government appointment processes. The Board recommended a final dividend of ₹1.40 per share (70%) amounting to ₹487 crore, subject to shareholder approval.

Sustainability and CSR Initiatives

Under the HARIT BHEL initiative, the company targets net zero emissions by 2047, having reduced emission intensity by 15.4%. Solar capacity reached 43.25 MWp generating 44.21 million units. CSR expenditure was ₹264 crore focusing on health, nutrition, and community infrastructure. Procurement from MSMEs reached 54.8% of total spending (₹10,752 crore), including 4% from women entrepreneurs and 0.3% from SC/ST entrepreneurs.

Risk Management and Contingent Liabilities

Total contingent liabilities stood at ₹6,610 crore including sales tax matters (₹423 crore), service tax matters (₹448 crore), court & arbitration matters (₹772 crore), and liquidated damages claims (₹3,673 crore). The company maintained strong credit ratings: CRISIL AA (Stable), INDIA RATINGS IND AA- (Positive), and CARE AA (Stable).

Forward Outlook

BHEL is well-positioned to benefit from government targets of 315 GW thermal power by 2035-36 and 100 GW nuclear power by 2047. Diversification into coal gasification, rail transportation, defence, and industrial products now contributes 29% to the order book. The company continues to focus on digital transformation, operational efficiency, and supporting India's energy transition and industrial self-reliance goals.