Earnings Review
BHEL Q1 net loss widens YoY; higher costs hit bottom line
This story was originally published at 21:45 IST on 6 August 2025
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--BHEL Apr-Jun net loss INR 4.55 bln
--Analysts saw BHEL Apr-Jun net profit at INR 510.75 mln
--BHEL Apr-Jun net loss INR 4.55 bln vs INR 2.13 bln loss year ago
--BHEL Apr-Jun revenue INR 54.87 bln vs INR 54.85 bln year ago
--BHEL Apr-Jun total expenses INR 62.80 bln vs INR 58.75 bln year ago
--BHEL Apr-Jun power revenue INR 38.99 bln vs INR 41.28 bln year ago
--BHEL Apr-Jun industry revenue INR 15.88 bln vs INR 13.57 bln year ago
--BHEL Apr-Jun EBITDA loss INR 3.52 bln vs INR 590 mln EBITDA loss year ago
--BHEL Apr-Jun order inflow INR 134.45 bln
--BHEL order book outstanding INR 2.044 tln as on Jun 30
By Arya S. Biju
MUMBAI – State-owned capital goods major Bharat Heavy Electricals Ltd. reported a net loss for the June quarter for the seventh straight year, against the Street's expectation that it might turn in a profit. The company's bottom line was hit by a high-single-digit rise on year in its total cost.
The company's net loss for the reporting quarter widened on year to INR 4.55 billion from INR 2.13 billion. Analysts had expected the company to report a net profit of INR 510.80 million for the quarter driven by a healthy order book and executions in both the power and industrial segments.
The company's revenue from operations for the quarter was INR 54.87 billion, slightly above INR 54.85 billion reported a year ago but well below the Street's estimate of INR 66.87 billion. On a sequential basis, the company's revenue plunged nearly 39%.
The company had a tax credit of INR 1.53 billion during the quarter, excluding which the company's net loss would have widened further to INR 6.07 billion. The company had a tax credit of INR 676 million during the year-ago quarter.
The company's total expenditure for the quarter grew nearly 7% on year but fell 26% sequentially to INR 62.80 billion, led by higher raw material costs and employee benefit expenses. The engineering and manufacturing company's raw material cost for the quarter rose nearly 11% on year to INR 41.28 billion and its expenses related to employee benefits rose nearly 2% on year to INR 14.63 billion. However, on a sequential basis, raw material costs and employee benefit expenses fell nearly 41% and 5%, respectively. The company's other expenses for the quarter almost doubled on year to INR 6.75 billion.
BHEL reported an earnings before interest, taxes, depreciation, and amortisation loss of INR 3.52 billion during the latest quarter compared to an EBITDA loss of INR 590 million a year ago. Analysts had expected the company to report an EBITDA of INR 1.92 billion.
The company's revenue growth for the June quarter was capped by a near 6% on-year decline in revenue from its largest segment, the power business. Revenue from the segment fell to INR 38.99 billion. The company's revenue from the industrial segment grew over 17% on year to INR 15.88 billion.
During the quarter, the company booked orders worth INR 134.45 billion. Of this, orders worth INR 76.20 billion came from the power segment and INR 58.25 billion from the industry segment, including exports. As of Jun. 30, the company's total outstanding order book was INR 2.044 trillion.
The company announced its June quarter earnings after market hours Wednesday. Shares of the company closed 3.4% lower at INR 239.83 on the National Stock Exchange. End
Edited by Rajeev Pai
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