BHEL Q3 results: Profit more than tripled to Rs 382 crore; turnover increases by 16% on an annual basis

Bharat Heavy Electricals Ltd (BHEL) on Monday reported a sharp turnaround in performance for the December quarter, with net profit more than tripling on higher execution and operating leverage. The state-owned engineering firm posted a net profit of Rs 382 crore for the third quarter ended December 2025, compared to Rs 125 crore in the same period last year, marking an increase of 206% year-on-year. Operating revenues rose 16% year-on-year to Rs 8,473 crore, compared to Rs 7,277 crore a year earlier, on the back of improved project execution and a stronger order pipeline. Total income for the quarter, including other income, stood at Rs 8,700 crore, up from Rs 7,393 crore in the same period a year ago. On the cost side, total expenses rose to Rs 8,188 crore from Rs 7,224 crore in the same quarter last year. The cost of materials and services rose to Rs 6,059 crore, while personnel costs increased marginally to Rs 1,531 crore. Financing costs declined sequentially to Rs 182 crore from Rs 195 crore in the September quarter, providing additional support to profitability.

Profit before tax for the quarter stood at Rs 512 crore, sharply higher than Rs 169 crore reported in the corresponding period last year. After factoring in a tax expense of Rs 129 crore, the company reported a net profit of Rs 382 crore for the quarter.

For the nine months ended December 2025, BHEL posted a net profit of Rs 295 crore, a sharp turnaround from Rs 8.9 crore in the year-ago period. Operating revenue for the nine months rose to Rs 21,472 crore from Rs 19,346 crore a year earlier.

The improved quarterly performance underlines stronger execution momentum and a gradual return to profitability after a prolonged period of pressure, aided by higher revenues and better cost control.

On Monday, BHEL shares were trading 2% lower at Rs 259.50 on the NSE.