More Stories

Informist, Friday, Jan. 16, 2026

By Gunjan Rajput

MUMBAI – Bharat Heavy Electricals Ltd. is expected to more than double its December quarter net profit, boosted by operating leverage and a significant rise in margin, according to analysts. The company's revenue is also expected to rise on better execution in its major segments – power and industrial.
 

The state-owned capital goods maker's standalone net profit is estimated in the range of INR 2.03 billion-INR 4.14 billion, as per estimates from three brokerages. This will be more than double the net profit of INR 1.25 billion the company had reported in the year-ago quarter. The company's net profit in the September quarter was INR 3.68 billion. Prabhudas Lilladher Pvt Ltd. has the highest estimate for net profit and Kotak Securities Ltd. has the lowest estimate.
 

While brokerages expect the net profit to rise on year, they were mixed about the company's sequential performance largely due to a difference in estimates of the margin. Nuvama Wealth Management Ltd. expects the company's EBITDA margin to fall 70 basis points sequentially whereas Kotak pegs the fall at 154 basis points. However, Prabhudas Lilladher expects EBITDA margin to rise 27 bps for the December quarter. "We expect Q3 to see the lingering impact of legacy low margin projects (Patratu and Ennore) which may keep results/margins depressed", Nuvama said. Patratu is a thermal power project targeted for completion in late 2026, while the Ennore thermal project is slated to be completed by March 2026.

BHEL's revenue for the quarter is estimated in the range of INR 84.46 billion-INR 89.52 billion. Kotak Securities has the highest estimate for revenue and Nuvama Wealth Management Ltd. has the lowest estimate.
 

Higher margin and better execution in the company's two segments of power and industrial will lead to a sharp year-on-year rise in net profit during the quarter, according to Kotak Securities and Prabhudas Lilladher.

The highest estimate for the company's earnings before interest, tax, depreciation and amortisation is INR 6.89 billion from Prabhudas Lilladher and the lowest is INR 5.55 billion from Kotak Securities. In the year-ago quarter, the company had reported an EBITDA of INR 3.21 billion.

BHEL is scheduled to report its December quarter results Monday. The stock has been flat since the company reported its September quarter results. At 1240 IST, shares of the company were trading up 0.11% at INR 267.75 on the National Stock Exchange.

Out of the eight brokerage reports on the company available with Informist, six have a 'buy' recommendation on the stock with an average target price of INR 333. This is 20% higher than the current market price. One brokerage has a 'hold' rating on the stock with a target price of INR 250 and one has a 'sell' with a target price of INR 115.

Following are the December quarter earnings estimates for BHEL from three brokerages in descending order of the estimate of net profit in INR billion:
 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.