BHEL Q4 FY26 profit doubles; stock hits 10% upper circuit

Stock hits upper circuit after results

Bharat Heavy Electricals Ltd (BHEL) shares surged on May 4, 2026 after the state-run engineering major reported a sharp year-on-year jump in quarterly profit and stronger operating metrics. In late morning trade, the stock hit the upper circuit and was locked at Rs 387.65, up 10% soon after the results were announced. Separate market updates also showed the stock rising as much as 13.20% intraday to a 52-week high of Rs 398.95.

By the close, BHEL ended higher on both key exchanges. On the BSE, it rose 6.97% to Rs 376.95, while on the NSE it gained 6.99% to Rs 377.05. The post-results rally reflected a clear earnings surprise versus estimates, even as revenue landed marginally below one poll expectation.

Profit more than doubles in March quarter

BHEL reported a sharp rise in net profit for the March 2026 quarter (Q4 FY26). One report cited net profit of Rs 1,283 crore, more than doubling from Rs 504 crore a year ago. Another exchange update cited consolidated net profit of Rs 1,290.47 crore versus Rs 504.45 crore in the same period last year.

The profit number was well ahead of a CNBC-TV18 poll estimate of Rs 826 crore. The earnings beat, combined with stronger margins, drove the stock’s sharp move and renewed focus on BHEL’s execution-led quarter-end performance.

Revenue grows around 37% year-on-year

On the top line, revenue from operations for the quarter was reported at about Rs 12,310 crore (Rs 12,310.37 crore in one update), up from Rs 8,993 crore (Rs 8,993.37 crore) in the year-ago quarter. That implied year-on-year growth of about 36.9%-37%.

However, revenue was slightly below a CNBC-TV18 poll estimate of Rs 12,398.3 crore. Another update cited total income of Rs 12,553.50 crore for the quarter, up from Rs 9,142.64 crore a year ago, indicating broader income growth beyond operations.

Margins expand as EBITDA more than doubles

Operational performance showed a sharp improvement in Q4 FY26. EBITDA rose more than two-fold to Rs 1,754 crore from Rs 832 crore a year earlier. EBITDA margin expanded to 14.2% from 9.2% in the corresponding quarter last year.

Other income also rose year-on-year, with one report putting it at Rs 252 crore versus Rs 159 crore. Another report cited other income of Rs 243.13 crore, up from Rs 149.27 crore in Q4 FY25. BHEL also reported total expenses of Rs 10,842.69 crore for the quarter, up 28.3% from Rs 8,448.14 crore a year earlier.

Dividend: Board recommends Rs 1.40 per share

Along with the quarterly results, BHEL’s board recommended a final dividend of Rs 1.40 per share for FY26. The company described this as 70% on a face value of Rs 2 per share.

The final dividend is subject to shareholder approval at the annual general meeting (AGM). If approved, the company said the dividend will be paid or dispatched within 30 days from the date of the AGM.

Segment performance: Power leads Q4 growth

BHEL’s quarterly performance was supported by higher revenues, especially from the power segment. For Q4 FY26, revenue from the power segment was reported at Rs 9,509.85 crore, up from Rs 6,192.41 crore in the corresponding quarter of FY25.

Industry segment revenue for the quarter was reported at Rs 2,800.52 crore. Another segment snapshot also reported segment profit of Rs 1,869.90 crore for power and Rs 673.03 crore for industry for the quarter.

Full-year FY26: profit jumps to about Rs 1,600 crore

For the full financial year 2025-26, BHEL reported a sharp rise in profitability. One update put FY26 net profit at Rs 1,600.26 crore versus Rs 533.90 crore in the previous fiscal. Another update reported FY26 net profit after tax at Rs 1,577.95 crore versus Rs 512.97 crore in FY25.

On income, total income for FY26 was reported at Rs 34,589.83 crore compared with Rs 28,804.79 crore in FY25. Revenue from operations for FY26 was reported at Rs 33,782.18 crore versus Rs 28,339.48 crore in FY25. Cash flow from operating activities improved to Rs 5,837.38 crore in FY26 from Rs 2,192.47 crore in FY25.

Key numbers at a glance

Valuation and trading snapshot

The rally also brought valuation metrics back into focus. One report put BHEL’s market capitalisation at around Rs 134,000 crore, with the stock trading at a price-to-earnings multiple of about 146. Another update said the day’s move added Rs 8,548.47 crore to market value, taking it to Rs 1,31,256.38 crore.

In terms of longer-term performance, one update said BHEL stock had risen 70.2% over the past year, while the Nifty 50 declined 0.9% over the same period. Another market note put BHEL’s year-to-date gains at 34% after the post-results rally.

What analysts and investors are watching next

Brokerage expectations cited in the reports indicate the quarter exceeded many forecasts. Kotak Institutional Equities had expected profit of Rs 627.90 crore and sales of Rs 10,520 crore, while Nuvama was expecting profit of Rs 637.50 crore and sales of Rs 11,136 crore.

A brokerage preview note also flagged that BHEL could continue to face an overhang from legacy low-margin projects, and that gas shortages could remain an execution headwind. At the same time, the note pointed to a record order book of Rs 220,000 crore as a support for deliveries.

Regulatory and accounting updates flagged with results

BHEL also noted it recognised a provision for gratuity for fixed-term employees based on guidance issued by the Institute of Chartered Accountants of India, using actuarial valuation principles consistent with Ind AS 19 (Employee Benefits). Separately, the company referenced the Government of India’s notification of the four Labour Codes on November 21, 2025, adding that detailed rules are yet to be fully notified and brought into effect.

Conclusion

BHEL’s Q4 FY26 results combined a large year-on-year profit jump, stronger EBITDA and margin expansion, and a final dividend recommendation, triggering an upper-circuit move in the stock. The next defined milestone is shareholder approval of the final dividend at the AGM, after which the company has said payment or dispatch will follow within 30 days.