BHEL shares rise 4% after 250% YoY jump in Q2FY26 profits

On Thursday, the BHEL share price rose by nearly 4% touching a day’s high price of Rs 254.65 on NSE after the company released its Q2FY26 results, revealing operational improvement in its core business and a stable order pipeline despite sectoral headwinds. The company’s revenue registered steady growth, driven by ongoing execution of thermal, hydro, and renewable energy projects, with management indicating a gradual pickup in execution momentum across its diversified portfolio.

Q2FY26 Financial Overview

The Consolidated revenue climbed to Rs 7,511.80 crore, a 14% YoY increase compared to Rs 6,584.10 crore in Q2FY25.?  The company reported an EBITDA margin of 7.7%, a marked jump from 4.16% in Q2FY25. This margin expansion is due to improved efficiency and supply chain discipline.? BHEL's Q2FY26 financials showed a robust recovery with consolidated net profit reaching Rs 374.89 crore, up 253% from Rs 106.15 crore in Q2FY25 this is In contrast to the previous quarter's loss of Rs 455.50 crore.

Segmental Highlights and Operational Trends

Within business segments, the power segment posted revenue of Rs 5,675.64 crore, a 45% jump over Rs 3,898.86 crore in Q1FY26 and 12.9% growth from Rs 5,028.28 crore in Q2FY25. The industrial segment reached Rs 1,836.16 crores, a 15.62% rise on a QoQ basis and 18.01% on a YoY basis. The EBIT for the power segment reached Rs 593.76 crores, a 76% rise YoY and bettered from the previous quarter's loss. The industrial segment EBIT reached Rs 280.04 crores in Q2FY26, which saw an increase from Rs 216.42 crores YoY, a 29.39% increase and 8.7% fall on a QoQ basis.

Order Book Summary

For the Q2FY26 quarter, BHEL received orders worth Rs 35,000 crores, out of which 73% comprises Power and the remaining 27% is from the Industrial segment. Major orders include Design, development and installation of KAVACH equipment, in locomotives and at trackside locations on 36 km section, of the South West Railways (first order for the Kavach system from Indian Railways), Each EPC of 660 MW Amarkantak Thermal Power Project and Satpura Thermal Power Project and BTG supply, and supervision of E&C, for 800 MW Anuppur Thermal Power Project among the orders received in the quarter.

As of 30th September 2025, the total outstanding order book stood at more than Rs 2,19,600 crores, comprising 80% from Power and the remaining 20% from the Industrial segment.

Brokerage Views

Brokerages responded positively, with some analyst consensus coming in line or slightly above expectations as per various sources. Morgan Stanley, with an ‘Overweight’ rating with a target price of Rs 258, mentioned that Revenue and EBITDA were better than estimates. Depreciation and other income were lower than expected, while interest expense was higher. 

Nuvama retained its ‘Buy’ rating with a target price of Rs 353 mentioned that it projects EBITDA margins to improve to about 14% by FY27 to FY28, up from 4.4% in FY25, driven by operating leverage from its Rs 2.2 lakh crore order book and an additional 25–30 GW of projects expected in the pipeline over the next 18 to 36 months. 

Over the next two years, key factors to monitor include the timely execution of the existing backlog, expansion in non-thermal segments such as railways, defence, and hydrogen, and the successful completion of legacy projects, as per sources.

Outlook

For the rest of FY26, BHEL’s results set a firm foundation for recovery and expansion across India’s energy and infrastructure markets. With government policy driving power sector gains, operational leverage, and expansion into renewables. Investors should watch project delivery and cash flow trends closely, as near-term volatility is possible. But with sector tailwinds and improved bottom-line performance, BHEL’s medium-term prospects remain constructive as per recent brokerage reports.?