BHEL Q2 FY26 Preview: Revenue growth likely, but margin may remain under pressure
Published on 29/10/2025 04:33 PM
Bharat Heavy Electricals Limited (BHEL) is expected to report a mixed set of numbers for the second quarter of FY26.
While the company’s revenue is likely to see healthy growth driven by better execution in the power and industrial segments, profitability could remain under pressure due to the impact of legacy projects on margins.
As per estimates, BHEL’s consolidated revenue is expected to rise 18.6 per cent year-on-year to Rs 7,806 crore, compared to Rs 6,584.10 crore in the same quarter last year.
This growth will likely be supported by improved execution in key segments such as power and industry, reflecting stronger project momentum and higher order inflows.
However, EBITDA is expected to decline 3.4 per cent YoY to Rs 266 crore, against Rs 275 crore a year ago, as margins come under strain from older, lower-margin projects.
The company’s EBITDA margin is seen slipping to 3 per cent from 4.18 per cent, reflecting cost pressures and execution of legacy orders.
Despite this, net profit is likely to witness a strong surge, rising 81.8 per cent YoY to Rs 193 crore, compared to Rs 106.2 crore in Q2 FY25.
The improvement in the bottom line is expected to be aided by higher other income and cost optimisation efforts.
During the quarter, BHEL secured significant orders worth Rs 14,000 crore in the power segment, strengthening its project pipeline.
The company also received an additional order under the Kavach segment, which will contribute to future revenues.
New project revenues are expected to start being recognised from Q4 FY26, while a more meaningful turnaround in performance is anticipated from FY27 onwards.
The company will declare its Q2 results on Wednesday, 29th October, 2025, for & up to the quarter ended 30th September, 2025.
Bharat Heavy Electricals Ltd shares rose 3.45 per cent to Rs 245.55, gaining Rs 8.20 in today’s trade.
Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.
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