Bharat Heavy Electricals (BHEL) Ltd: Business Overview & Financial Analysis

Bharat Heavy Electricals Limited (BHEL) is India's leading power equipment manufacturer and one of the country's largest engineering and manufacturing companies. The government-owned Maharatna PSU designs, manufactures, installs and services equipment for power generation, transmission, transportation, renewable energy, defence and industrial sectors. With an extensive manufacturing and service network across India, BHEL plays a key role in supporting the country's energy and infrastructure development.

BHEL Business Segment Mix (FY2025-26)

BHEL derives the majority of its revenue from the power sector while steadily expanding its presence across industrial and infrastructure projects.

• Power Segment – 75% of operational revenue
• Industry Segment (including exports) – 25% of operational revenue

The power business remains BHEL's largest revenue contributor, while the industry segment provides diversification through railway, defence, transmission, oil & gas and industrial engineering projects.

BHEL Financial Performance (FY2025-26)

BHEL reported strong revenue growth and a sharp improvement in profitability as project execution accelerated across major contracts.

• Revenue from Operations – Rs 33,782 crore (+19% YoY)
• EBITDA – Rs 3,189 crore
• Profit After Tax (PAT) – Rs 1,578 crore (around three times YoY)
• Net Cash Generated – Rs 4,630 crore
• EBITDA Margin – 7.0% (vs 5.1% last year)
• Final Dividend – Rs 1.40 per share

Higher revenue and profitability were supported by faster project execution, improved contract margins and completion of several lower-margin legacy projects.

BHEL Order Book (As of March 31, 2026)

BHEL continues to maintain one of the largest order books among Indian engineering companies, providing strong long-term revenue visibility.

• Outstanding Order Book – Rs 2,39,057 crore
• Fresh Orders During FY26 – Rs 75,916 crore
• Power Sector Orders – Rs 59,256 crore
• Industry & Export Orders – Rs 16,660 crore (+50% YoY)
• Non-Thermal Projects – 29% of annual order inflows

The record order backlog provides multi-year execution visibility, while increasing diversification into non-thermal and industrial businesses strengthens future growth opportunities.

BHEL Operational Highlights (FY2025-26)

BHEL maintained its leadership position across India's power equipment sector while expanding its clean energy capabilities.

• Share of Installed Thermal Capacity – 54%
• Share of Installed Nuclear Capacity (Secondary Side) – 60%
• Share of Installed Hydro Capacity – 43%
• Power Capacity Commissioned – 8.9 GW
• Fresh Thermal Power Orders – Around 10 GW
• Captive Solar Capacity – 43 MWp
• Emission Intensity – Reduced by 15.4% YoY

The company continued executing large power projects while expanding its presence in renewable energy and improving operational sustainability.

BHEL Balance Sheet and Financial Position (As of March 31, 2026)

BHEL strengthened its financial position through debt reduction and improved profitability.

• Total Borrowings – Rs 7,950 crore
• Interest Coverage Ratio – 4.24x
• Debt-to-Equity Ratio – 0.31x
• TOL/TNW Ratio – 1.74x
• Long-Term Credit Rating – CRISIL AA (Stable)
• Short-Term Rating – CRISIL A1+

Lower debt levels, improved interest coverage and strong credit ratings provide financial flexibility to execute large infrastructure projects.

BHEL Working Capital and Global Presence (As of March 31, 2026)

The company continued improving cash flow efficiency while maintaining a strong international footprint.

• Gross Current Asset Cycle – 415 to 420 days
• Approved Bank Facilities – Rs 80,000 crore
• Global Presence – Projects across 94 countries

Improved working capital management and milestone-based billing have supported stronger cash generation despite long project execution cycles.

BHEL Project Execution and Defence Business (FY2025-26)

BHEL expanded its capabilities across defence, power transmission and strategic infrastructure projects.

• Navy Super Rapid Gun Mounts Delivered – 52
• Advanced Naval Gun Systems Delivered Ahead of Schedule – 4
• 400 kV GIS Commissioned in 75 Days
• ±800 kV, 6,000 MW HVDC Project – Bhadla-Fatehpur package
• Mumbai-Ahmedabad High-Speed Rail – Malegaon station commissioned

The successful execution of strategic defence and transmission projects demonstrates BHEL's engineering capabilities beyond conventional power equipment.

BHEL Management Outlook (FY2025-26)

Management remains focused on improving margins while expanding into high-growth engineering segments.

• Target EBITDA margin of 8% to 10% over the long term.
• Expand opportunities in green hydrogen through the thyssenkrupp nucera partnership.
• Continue executing large HVDC transmission projects.
• Grow presence in coal gasification and process industries.
• Strengthen defence manufacturing capabilities.
• Improve working capital efficiency and cash conversion.
• Continue expanding profitability to support Maharatna growth objectives.

BHEL expects its record order book, improving project execution and increasing diversification into renewable energy, transmission and defence to support sustainable long-term growth.

Citations

[1.1.1] Bharat Heavy Electricals Limited Integrated Annual Report Disclosure for the Financial Year 2025-26.
[1.1.2] Multibagg Corporate Action Hub: BHEL Share Price Catalysts, Dividend Record Dates, and green hydrogen Agreements Review (July 2026).
[1.1.4] Cabinet Secretariat Public Sector Review: Maharatna Evaluation Guidelines and BHEL Profit Projections (June 2026).
[1.2.1] CRISIL Ratings Limited Review and Rating Evaluation Fact Sheet for Bharat Heavy Electricals Limited (July 03, 2026).
[1.2.3] BHEL Corporate Infrastructure Profile and Project Distribution Fact Sheet (2026).
[1.3.1] T&D India Power Grid Sourcing Repository: BHEL Order Inflows and Backlog Analysis (April 20, 2026).
[1.3.3] Ticker Finology Company Profile and Financial Database for Bharat Heavy Electricals Limited (BHEL).

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Disclaimer
The information presented above on Bharat Heavy Electricals Limited has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on the Finology Ticker Bharat Heavy Electricals Limited page before making any investment decision.