By Ventura Research Team 3 min Read
BHEL Share Price Rise
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Summary:

BHEL share price rose after the company reported strong Q2 FY27 results, with net profit increasing 120% year on year to around ₹810 crore and revenue rising 24%. Higher EBITDA and improved margins also strengthened the quarterly earnings performance.

Why did BHEL share price rise today?

Bharat Heavy Electricals Ltd (NSE: BHEL | BSE: 500103) reported a robust Q2FY27 financial performance with net profit more than doubling and revenue up by nearly 24%. The state-owned engineering and manufacturing company reported its results on Wednesday, October 14, 2026 for the quarter ended September 30, 2026.

The company’s earnings growth is set against a backdrop of increased investment in India’s power generation infrastructure and increasing demand for heavy electrical equipment.

BHEL Q2FY27 Results

BHEL’s net profit grew around 120% YoY to ₹810 crore as against ₹368 crore in the same quarter last year.

MetricQ2 FY27Year-on-year comparison
Net profitAround ₹810 croreUp approximately 120%
Revenue from operationsAround ₹9,300 croreUp approximately 24%
EBITDAAround ₹1,026 croreUp approximately 77%
EBITDA marginAround 11%Up from 7.7%
Share-price reactionPositive intraday moveReported at different levels during the session

Operations revenue at ₹9,300 crore went up nearly 24% on a YoY basis, aided by higher business activity and better project execution.

On a sequential basis, the company also witnessed a significant improvement in its financial performance. The Company’s revenue grew 23.81% QoQ to ₹9,300.35 crore in Q2FY27 from ₹7,511.80 crore in Q1FY27.

However, net profit reported was up at ₹820.94 crore from ₹374.89 crore in the previous quarter, a growth of about 119% QoQ. The difference in the profit numbers reported is due to different bases of reporting.

Better operating performance is reflected in the profit improvement as the company works on its current orders.

Growth Underpinned by Rising Power Sector Demand

BHEL is one of the largest power generation and heavy electrical equipment manufacturing companies in India. Its products find use in thermal power plants, transmission systems, industrial, transportation and defense projects.

The company manufactures boilers, turbines, generators and other equipment needed for large power generation projects.

Increasing electricity consumption in India and renewed investments in thermal power generation have increased demand for power equipment.

India may need 105-150 gigawatts (GW) more coal-based power generation capacity by 2035 than it had earlier planned for capacity augmentation, the Central Electricity Authority said recently.

These developments could provide more opportunities for domestic power equipment makers such as BHEL.

The speed at which new project awards, execution schedules and equipment deliveries turn these opportunities into revenue will be the deciding factor.

BHEL's order book gives revenue visibility.

At the beginning of FY27, BHEL had an order book of ₹2.4 lakh crore, aided by fresh orders worth about ₹75,000 crore in FY26.

The order book includes projects from the power generation, industrial equipment and other engineering segments.

We have a strong order pipeline that provides good visibility of future business activity, but revenue recognition is dependent upon project execution and completion milestones.

Timely equipment deliveries, effective working capital management and control over manufacturing costs will continue to be important to sustain profitability.

Why Did BHEL Share Price Rise Today on Q2 Results

On October 14, the stock of BHEL rose about 3.5% in intraday trade, after the market responded to the company’s quarterly financial numbers.

The stock closed at ₹442.35 on October 13, gaining 0.56% ahead of the earnings announcement.

The company’s shares have also experienced a strong rebound in 2026, up about 57.6% year-to-date.

Bharat Heavy Electricals Ltd (BHEL) shares rose on October 14 after the company reported a strong Q2 FY27 performance. Net profit increased approximately 120% year on year to around ₹810 crore, while revenue from operations rose about 24% to ₹9,300 crore. EBITDA also increased sharply, and the EBITDA margin improved to around 11% from 7.7% a year earlier. The results drew attention to the company’s profitability and its ability to execute large engineering and power-sector projects.

What's in store for BHEL?

Due to higher business activity and project execution, BHEL has been able to report better revenue growth and profitability in Q2FY27.

India’s growing demand for power and planned additions to thermal power capacity could spur demand for the company’s equipment in the years ahead.

However, there are several important factors to monitor, including raw material costs, project execution delays, working capital requirements and operating margins.

How much of the sizable order book the company can convert into revenue and remain profitable will be a key factor for its financial performance over the next few quarters.

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