New Delhi: State-owned heavy industries manufacturing giant Bharat Heavy Electricals Limited (BHEL) has reported a net loss of Rs.455 crore in Q1FY26, a 116% increase from Rs.210 crore net loss in the corresponding quarter last year. The company’s revenues have remained flat at Rs.5,487 crore in the quarter, a tad higher than the Rs. 5,485 crore reported last year. The company’s expenses have risen to Rs.6,280 crore, 7% higher than Rs.5,874 crore a year ago.
The company has attributed the losses to hampered construction activity due to early monsoons, even as the company commissioned various projects and capacity additions in India and Bhutan, including the 7th Unit of the Rawatbhata Atomic Power Plant (RAPP) and the 170MW capacity addition at the Punatsangchhu-II HEP, Bhutan.
BHEL has been facing challenges recovering its dues for completed projects, including the Suratgarh capacity expansion project (2x660MW units) for the Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) and its completed power project in Sudan, which is stuck due to their ongoing civil war.
These have been the biggest drags on the company’s profitability, even as the company has managed to bag lucrative contracts-including the supply of various components to the Railways and the erection and commissioning of a 60MW steam turbine generator. The most notable order has come from NewSpace India Ltd, the commercial arm of ISRO, for the supply of 5,733 units of 5Ah lithium-ion cells.
The company has been struggling to maintain its profitability for more than 5 years now, the company has seen its value decrease almost 26% in the past year. Despite this, it has regularly paid dividends with a 0.33% dividend yield.
BHEL’s shares have fallen almost 7% in early morning trades on August 7, after the company declared its results to the bourses on August 6.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
