Mumbai: State-owned engineering major Bharat Heavy Electricals Limited (BHEL) reported a sharp improvement in profitability in the December quarter, with standalone net profit rising more than three-fold year-on-year to Rs 382.49 crore in Q3 FY26. Revenue from operations increased 16.4 percent YoY to Rs 8,473.10 crore, supported by steady execution in the power and industrial segments. The company also maintained sequential momentum over Q2 FY26, reflecting improving operating leverage.
BHEL’s standalone total income for the quarter ended December 31, 2025 stood at Rs 8,700.18 crore, up from Rs 7,693.55 crore in the September quarter and Rs 7,393.33 crore in the year-ago period. Profit before tax rose to Rs 511.92 crore compared with Rs 168.82 crore in Q3 FY25, aided by higher revenues and controlled expenses. Net profit increased to Rs 382.49 crore from Rs 124.77 crore a year earlier, while earnings per share improved to Rs 1.10 from Rs 0.36.
On a sequential basis, revenue grew 12.8 percent over Q2 FY26, while net profit rose 4 percent. Total expenses increased to Rs 8,188.26 crore from Rs 7,201.54 crore in the previous quarter, largely on account of higher material costs and employee expenses. However, improved scale helped offset cost pressures. Finance costs declined marginally on a sequential basis to Rs 182.47 crore.
Segment-wise, the power business continued to be the mainstay, contributing Rs 6,322.36 crore to quarterly revenue, while the industry segment added Rs 2,150.74 crore. Both segments recorded healthy growth over the year-ago period, reflecting better order execution.
For the nine months ended December 2025, BHEL posted revenue from operations of Rs 21,471.81 crore, compared with Rs 19,346.11 crore in the corresponding period last year. Net profit for the nine-month period stood at Rs 295.27 crore, sharply higher than Rs 8.92 crore in 9M FY25, supported by improved operating performance and lower exceptional pressures.
The company noted that trade receivables include Rs 211 crore due from a Sudan-based customer, which has not been provided for due to civil unrest, as approved by the board. BHEL also highlighted the potential impact of newly notified labour codes, which will be evaluated once implementation rules are finalised.
Disclaimer: This article is based on unaudited standalone financial results disclosed by the company. Figures are subject to revision upon audit and should not be construed as investment advice.
