BHEL Stock Surges 10% After Q4 Earnings Exceed Expectations
BHEL Shares Surge 10% to Hit Upper Circuit Following Strong Q4 Earnings
Shares of Bharat Heavy Electricals Ltd (BHEL) skyrocketed 10 percent to hit the upper circuit in late morning trade on Monday, following the company's impressive fiscal fourth quarter (Q4) earnings report. The BHEL stock was locked at Rs 387.65 after the results announcement.
The state-run engineering major reported a net profit of Rs 1,283 crore for the quarter, significantly exceeding the CNBC-TV18 poll estimate of Rs 826 crore. Notably, the company's profit more than doubled from Rs 504 crore in the year-ago period, indicating a substantial improvement in its operational performance.
Revenue came in at Rs 12,310 crore, slightly below the poll estimate of Rs 12,398.3 crore, but still marked a strong 37 percent year-on-year growth compared to Rs 8,993 crore. A comparison of the company's revenue growth over the past year is as follows:
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| Quarter | Revenue (Rs crore) | Growth Rate |
|---|---|---|
| Q4 FY26 | 12,310 | 37% |
| Q4 FY25 | 8,993 | - |
Operational performance saw a sharp improvement, with EBITDA rising more than two-fold to Rs 1,754 crore from Rs 832 crore a year ago. Margins expanded to 14.2 percent from 9.2 percent in the corresponding quarter last year. Other income also increased to Rs 252 crore from Rs 159 crore on a year-on-year basis.
Furthermore, the company's board has recommended a final dividend of Rs 1.40 per share (70 percent on a face value of Rs 2) for FY26. The dividend, if approved at the annual general meeting, will be paid within 30 days from the date of the AGM.
BHEL stock has delivered strong returns over the past year, rising 70.2 percent, significantly outperforming the Nifty 50, which has declined 0.9 percent during the same period. The company currently has a market capitalisation of around Rs 1.34 lakh crore, with the stock trading at a price-to-earnings multiple of about 146.
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Investor Takeaway
Investors should consider BHEL stock for potential growth opportunities.
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