New Delhi: Bharat Heavy Electricals Limited (BHEL), India’s state-owned engineering and manufacturing giant, reported a stellar performance for the quarter ended December 31, 2025 (Q3 FY26), with standalone net profit soaring 206.5% year-on-year to ₹382.49 crore. Revenue from operations rose 16.4% to ₹8,473.10 crore, driven by strong growth across its Power and Industry segments.
Key Financial Highlights – Q3 FY26
- Standalone Net Profit: ₹382.49 crore, up 206.5% from ₹124.77 crore in Q3 FY25
- Revenue from Operations: ₹8,473.10 crore, up 16.4% from ₹7,277.09 crore
- Profit Before Tax (PBT): ₹511.92 crore, up 203.2% from ₹168.82 crore
- Earnings Per Share (EPS): ₹1.10 (not annualized), compared to ₹0.36 last year
BHEL’s performance reflects improved project execution, a stronger order pipeline, and cost management initiatives that contributed to substantial profitability growth.
Segment-wise Performance
- Power Segment: Revenue of ₹6,322.36 crore; Profit of ₹497.58 crore
- Industry Segment: Revenue of ₹2,150.74 crore; Profit of ₹424.16 crore
The Power segment remained BHEL’s largest contributor, supported by ongoing domestic and export power projects, while the Industry segment demonstrated robust execution in EPC contracts and manufacturing orders.
Auditor’s Notes: Sudan Receivables and Labour Code Impact
The statutory auditor highlighted two points requiring investor attention:
- Sudan Receivables: BHEL has not provided for ₹211 crore (USD 25.5 million) overdue from STPG (formerly NEC Sudan), impacted by civil unrest. Accounting for this would reduce PBT by ₹211 crore.
- Labour Code: The company is yet to assess the full financial impact of newly notified Labour Codes, pending the final rules from the government.
Despite these, the company’s robust operational performance drove significant year-on-year profit growth.
Nine-Month Performance – FY26
For the nine months ended December 2025, BHEL reported a standalone net profit of ₹295.27 crore, a massive turnaround from just ₹8.92 crore in the same period last year. Revenue from operations for the nine months stood at ₹21,471.81 crore, up from ₹19,346 crore, highlighting consistent growth and execution efficiency.
Total income, including other income, reached ₹8,700 crore in Q3, up from ₹7,393 crore a year ago. Total expenses rose to ₹8,188 crore, with material and service costs increasing to ₹6,059 crore and employee benefit expenses marginally increasing to ₹1,531 crore. Finance costs declined to ₹182 crore from ₹195 crore in the previous quarter, providing additional support to profits.
Management Commentary
The company’s leadership emphasized that strong execution across Power and Industry segments, combined with disciplined cost management and financial planning, drove this record performance. The turnaround in nine-month profits also indicates a resilient order pipeline and efficiency improvements in project execution.
About BHEL
Bharat Heavy Electricals Limited (BHEL), a Maharatna Public Sector Enterprise under the Ministry of Heavy Industries, is India’s leading power and industrial equipment manufacturer. With a legacy spanning over five decades, BHEL designs, manufactures, and services products across power generation, transmission, and industrial sectors. The company plays a pivotal role in India’s energy infrastructure development, contributing to projects both domestically and internationally.
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