Shares of Bharat Heavy Electricals (BHEL) Ltd. are trading with losses on Tuesday, October 13, ahead of its second quarter earnings.
The state-run company’s board of directors are scheduled to meet on Wednesday, October 14, to declare its September quarter results.
A CNBC-TV18 poll of analysts expects BHEL’s revenue to increase by 23% to ₹9,236 crore from ₹7,511 crore that the company reported in the previous year.
The street estimates BHEL’s earnings before interest, taxes, depreciation and amortization (EBITDA) to increase by 52% to ₹881 crore from ₹581 crore last year, indicating a strong operating performance during the quarter.
Along with growth in EBITDA, BHEL’s EBITDA margins are also likely to expand by 180 basis points to 9.5% from 7.7% from the year-ago quarter.
BHEL’s net profit is also expected to surge 78% to ₹654.4 crore from ₹368 crore last year, as per the poll.
Analysts believe BHEL’s growth is likely to be driven by sustained execution in the power segment and improved execution in the industry segment. Its ramp up in executions is also likely to support margins.
BHEL’s order inflows are expected to be muted during the quarter. Analysts expect the company’s turnaround to become more evident from the second half of the financial year 2027.
These are the factors to watch out for after BHEL reports its Q2 results:
- Execution pace across the power and industry segments.
- Working capital management.
- Prospects for order inflows in power segment.
Shares of BHEL are trading 2.6% lower on Tuesday at ₹428.4. The stock is up 47% so far this year.
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