Mumbai, Oct 14 (IANS) Bharat Heavy Electricals Limited (BHEL) shares surged to a record high on Wednesday after the state-run engineering major reported a 120 per cent year-on-year jump in net profit for the September quarter (Q2 FY27), driven by strong revenue growth and an improvement in operating margins.
The Maharatna public sector undertaking reported a consolidated net profit of Rs 810 crore for the quarter ended September 2026, compared with Rs 368 crore in the corresponding period last financial year (Q2 FY26), according to its stock exchange filing.
The sharp rise marked a 120.1 per cent year-on-year increase in earnings. Revenue from operations rose 23.8 per cent to Rs 9,300 crore during the quarter from Rs 7,511 crore a year earlier.
The company's operating performance also improved significantly. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 76.6 per cent year-on-year to Rs 1,026 crore from Rs 581 crore in the year-ago period.
BHEL's EBITDA margin expanded to 11 per cent in the September quarter from 7.7 per cent a year earlier, as per its regulatory filing.
However, the company reported higher expenses during the quarter, with other expenses rising to Rs 721 crore from Rs 391 crore in the previous quarter.
Separately, BHEL's board approved a capital expenditure proposal of around Rs 500 crore to set up additional manufacturing facilities for thermal and nuclear equipment at its Heavy Electrical Equipment Plant (HEEP) in Haridwar. The investment is aimed at expanding the company's manufacturing capabilities in line with growing demand from the power sector.
The board also cleared the merger of the Electrical Machines Repair Plant (EMRP) in Mumbai with the Electronics Division (EDN) in Bengaluru. The Electronics Division will serve as the merged entity, with the restructuring taking effect from November 1, 2026.
The strong quarterly performance further extended BHEL's stellar stock market rally. The stock has gained more than 58 per cent so far in 2026 and is up 99 per cent over the past year. Over a five-year period, BHEL shares have surged more than 521 per cent, delivering multibagger returns to investors.
With Wednesday's rally, the stock touched a record high of Rs 463.60, more than doubling from its 52-week low of Rs 229.70 recorded in September 2025.
