BHEL share price falls 3% despite 191% jump in Q3FY26 net profit

BHEL share price fell nearly 3% despite a strong earnings report fotr Q3 . The shares recouped all the intraday losses earlier to trade flat at ₹265 apiece on the NSE after the company announced its quarterly earnings. The company’s net profit jumped nearly 191% YoY over the same quarter last year.

Bharat Heavy Electrical Ltd, or BHEL, posted a strong jump in revenue at 16.4% YoY to ₹8473 crore as compared to ₹7,277 crore in the same period last year. On a sequential basis, the revenue rose 12.8% QoQ from ₹7,511 crore.

On the operating front, the company’s EBITDA (Earnings before interest and taxes, depreciation and amortisation) grew by nearly 80% YoY to ₹545 crore as compared to ₹305 crore in the same period last year. Similarly, the EBITDA margin for the quarter also expanded to 6.44% vs 4.19% in the same period last year. The strong growth in operating profit was largely driven by higher other expenses in the Q3FY25.

Following the strong operating performance, the net profit for the quarter jumped nearly 191% YoY at ₹390 crore vs ₹134 crore in the same period last year.

Earlier this month, the company received letter of acceptance (LoA) worth around ₹5400 crore (excluding GST) from Bharat Coal Gasification and Chemicals (BCGCL), a joint venture company of BHEL (49%) and Coal India (51%). The order is for Coal Gasification & Raw Syngas Cleaning Plant (LSTK 1 Package) of BCGCL's Coal to 2000 TPD Ammonium Nitrate Project at Lakhanpur, Jharsuguda, Odisha.

The order includes design, engineering, supply of equipment, civil works, erection, commissioning and O&M Services for LSTK 1 Package. The project is to be completed (Commissioning & Performance Guarantee Test) within 42 months from date of LoA; and the operation and maintenance (O&M) services will be for 60 months thereafter.