BHEL Q2 FY27 Results Analysis: PAT More Than Doubles, EBITDA Margin Expands 354 bps
Bharat Heavy Electricals Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 9,300.35 Cr (+23.81% YoY) and PAT growth of +120.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 14, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 9,300.35 Cr (+23.81% YoY) |
| PAT (Q2) | Rs. 809.62 Cr (+120.20% YoY) |
| EBITDA margin | 13.45% (+354 bps YoY) |
| EPS (Q2) | Rs. 2.33 (+119.80% YoY) |
| Market cap | Rs. 154,307.67 Cr |
| CMP | Rs. 443.15 |
Quarter Snapshot
BHEL's Q2 FY27 revenue grew 23.8% YoY to Rs.9,300.35 Cr with PAT more than doubling to Rs.809.62 Cr — the highest Q2 on record — as EBITDA margin expanded 354 bps to 13.45% and H1 operating cash flow swung to Rs.1,907.09 Cr from negative Rs.1,182.03 Cr. H1 PAT of Rs.1,191.53 Cr already stands at 75.5% of FY26's full-year PAT, with the Industry segment (+45% YoY, 19.48% PBIT margin) reversing Q1's margin compression. The other-expenses line (+203.7% YoY to Rs.721 Cr) is the main margin headwind, and the absence of any Independent Director with a non-compliant audit committee remains an unresolved governance issue.
Key Investment Insights
Key Positives
- Revenue grew 23.8% YoY to Rs.9,300.35 Cr, crossing Rs.9,300 Cr for the first time in a non-Q4 quarter
- PAT grew 120.2% YoY to Rs.809.62 Cr, the highest Q2 on record; PBT more than doubled to Rs.1,077.75 Cr
- EBITDA (company definition) rose 68.6% YoY to Rs.1,285.60 Cr with margin up 354 bps YoY to 13.45%
- Industry segment revenue grew 45.0% YoY to Rs.2,662.45 Cr with PBIT margin recovering to 19.48% from 13.64% in Q1 FY27; Power PBIT margin expanded 247 bps YoY to 12.93%
- H1 FY27 PAT of Rs.1,191.53 Cr is 75.5% of FY26 full-year PAT of Rs.1,577.95 Cr
- H1 operating cash flow of Rs.1,907.09 Cr versus negative Rs.1,182.03 Cr in H1 FY26; CFO/PAT at 1.60x
- Short-term borrowings reduced by Rs.2,140.84 Cr in H1, taking debt-to-assets to 0.08 from 0.11; finance costs fell 36.1% YoY
- Material cost ratio improved to 74.82% of revenue from 76.43%, and employee cost ratio fell to 17.76% from 19.70%
Risk Factors
- Other expenses rose 203.7% YoY to Rs.721.00 Cr (84.5% QoQ), the main margin headwind; a sustained run-rate implies FY27 other expenses of ~Rs.2,200 Cr vs Rs.1,989 Cr in FY26
- Board has no Independent Director and the Board-Level Audit Committee is non-compliant with SEBI LODR Regulation 18 and Companies Act Section 177; BSE and NSE fined Rs.11,03,300 each (incl GST)
- STPG receivable of Rs.196 Cr (USD 23 million) from Sudan is overdue and unprovided; provision would impact PBT by Rs.176 Cr net of ECL
- NBPPL JV requires capital support — Board approved Rs.65 Cr equity investment on 14 Sep 2026 to settle urgent liabilities; FY26 loss of Rs.26.74 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.