Newsletter
Shares of Bharat Heavy Electricals (BHEL) climbed 4% after the state-run company reported a stronger-than-expected June quarter and returned to profit after a loss a year ago.
By the numbers:
- Net profit: ₹382 crore, compared with a loss of ₹454 crore a year ago
- Revenue: up 40.3% YoY to ₹7,698 crore
- EBITDA: Improved to ₹504 crore from an EBITDA loss of ₹537 crore last year
- EBITDA margin: 6.5%
The turnaround came despite total expenses rising 18.1% to ₹7,416 crore, as strong revenue growth more than made up for the higher costs.
What drove the surge: BHEL's biggest business: power. Revenue from its power segment jumped 52% year-on-year, accounting for nearly 77% of the company's total revenue.
Why does this matter: India's electricity demand is rising rapidly, driven by manufacturing, data centres, EVs and higher consumption.
The country already recorded a peak power demand of 271 GW, and that is expected to climb to 276-280 GW this year before nearing 300 GW next year.
To meet this growing demand, India is adding more power generation capacity, and BHEL is one of the biggest suppliers of equipment for thermal power plants.
