Order Book Or Contract Wins
Expected: Next 3-4 yearsHIGH confidence
What: Order Book Size: INR 1,08,618 Crore
Impact: 3.5x Revenue visibility
Bharat Heavy Electricals Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +53.1%Weak5w Streak
In , Bharat Heavy Electricals Ltd (Capital Goods - Engineering Heavy) is outperforming Nifty 500 with +53.1% relative strength. Fundamentals: Weak. On a 5-week streak.
Bharat Heavy Electricals Ltd Key Facts
- PE Ratio
- 151.0x
- Market Cap
- ₹1,22,711 Cr
- PAT Growth YoY
- +189%
- Revenue Growth YoY
- +16%
- OPM
- 6.0%
- RS vs Nifty 500
- +53.1%
PE: Mid ContractionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 22% YoY — leverage rising
🌐FII stake decreased 3.3% this quarter
🏛️DII accumulation — stake up 3.9%
💰Trading 81% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 3-4 yearsHIGH
2. Operating Leverage Inflection
FY25HIGH
3. Order Inflow guidance raised
HIGH
Key Risks
1. Fluctuations in steel and copper prices impact fixed-price contracts
MEDIUM2. Delays in site readiness by customers affecting execution timelines
LOWSector-Specific Signals
Total Order BookINR 1,08,618 Crore5.4%
Book-to-Bill Ratio4.6xNot Given
Power Segment Revenue Share78.4%1.2%
Debtor Days412 daysReduced
Key Numbers
PAT Growth YoY
+189%
Stable
Revenue YoY
+16%
Stable
Operating Margin
6.0%
+200 bps YoY
PE Ratio
151.0
Current Price
₹352
Dividend Yield
0.14%
Fundamental Score
31/100
Weak
3Y PAT CAGR
+6%
Market Cap
1.4L Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Bharat Heavy Electricals Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: FY25HIGH confidence
What: EBITDA Margin: 4.58%
Impact: Turnaround from loss
Order Inflow guidance raised
HIGH confidence
What: INR 25,000 Cr → INR 40,000 Cr+
What Are the Key Risks for Bharat Heavy Electricals Ltd?
Earnings deceleration risks from management commentary
Fluctuations in steel and copper prices impact fixed-price contracts
MEDIUMTrigger: Fluctuations in steel and copper prices impact fixed-price contracts.
Impact: PAT impact: 5-7%
Management view: Increasing the proportion of variable price contracts in new orders.
Monitor: commodity
Delays in site readiness by customers affecting execution timelines
LOWTrigger: Delays in site readiness by customers affecting execution timelines.
Impact: PAT impact: Not Quantified
Management view: Closer coordination with state utilities for site clearance.
Monitor: logistics
What Did Bharat Heavy Electricals Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 6,584.10 Crore
YoY +28.45%QoQ +0.03%
Revenue growth was driven by execution in the power segment despite a marginal sequential flatline.
EBITDA
INR 301.60 Crore
Margin 4.58%
EBITDA turned positive year-on-year due to better absorption of fixed costs on higher volumes.
PAT
INR 106.15 Crore
QoQ +10.4%
The company returned to profitability supported by higher execution and a decrease in raw material cost as a percentage of sales.
Other Highlights
• Order inflow for 9M FY24 reached INR 36,044 crore.
• Total expenditure rose 18% to INR 6,751.78 crore.
• Power segment revenue grew 31% YoY to INR 5,163 crore.
What Sector Metrics Matter for Bharat Heavy Electricals Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Order Book
INR 1,08,618 Crore
YoY 5.4%QoQ Not Given
Why: Driven by major wins in the power and industrial segments during the fiscal year.
Book-to-Bill Ratio
4.6x
YoY Not GivenQoQ Not Given
Why: High ratio due to massive order inflows outpacing current execution cycles.
Power Segment Revenue Share
78.4%
YoY 1.2%QoQ Not Given
Why: Increased execution of thermal projects compared to the industrial segment.
Debtor Days
412 days
YoY ReducedQoQ Not Given
Why: Improved collections from state power utilities under the Late Payment Surcharge (LPS) scheme.
What Is Bharat Heavy Electricals Ltd's Management Guidance?
Forward-looking targets from management for FY25-26
OPM Guidance
10%
Capex Plan
₹1500 Cr
Revenue Outlook
INR 30,000 Crore+ annual revenue target
Margin Outlook
Aims for double-digit EBITDA margins
Capex Plan
INR 1,500 Crore
Modernization and Green Hydrogen capacity
Volume
Focus on 10-12 GW of thermal execution annually
Management Tone: BULLISH
Guidance Changes
RAISED
Order Inflow: INR 25,000 Cr → INR 40,000 Cr+
Surge in thermal power tenders
How Fast Is Bharat Heavy Electricals Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +16% | +10% | Stable |
| PAT (Net Profit) | +189% | +6% | Stable |
| OPM | 6.0% | +200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Capital Goods - Engineering Heavy Stocks Beating Nifty 500
Frequently Asked Questions: Bharat Heavy Electricals Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Bharat Heavy Electricals Ltd's latest quarterly results?
Bharat Heavy Electricals Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +188.9% (stable)
- Revenue Growth YoY: +16.4%
- Operating Margin: 6.0% (volatile)
Is Bharat Heavy Electricals Ltd's profit growing or declining?
Bharat Heavy Electricals Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +188.9% (latest quarter)
- PAT Growth QoQ: +4.0% (sequential)
- 3-Year PAT CAGR: +6.3%
- Trend: Stable — consistent growth pattern
What is Bharat Heavy Electricals Ltd's revenue growth trend?
Bharat Heavy Electricals Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +16.4%
- Revenue Growth QoQ: +12.8% (sequential)
- 3-Year Revenue CAGR: +10.1%
How is Bharat Heavy Electricals Ltd's operating margin trending?
Bharat Heavy Electricals Ltd's operating margin is volatile.
- Current OPM: 6.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: -2.0% basis points
What is Bharat Heavy Electricals Ltd's 3-year profit and revenue CAGR?
Bharat Heavy Electricals Ltd's long-term compounding rates
- 3-Year Profit CAGR: +6.3%
- 3-Year Revenue CAGR: +10.1%
Is Bharat Heavy Electricals Ltd's growth accelerating or decelerating?
Bharat Heavy Electricals Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: 0.0% bps
- Sequential Acceleration: -46.0% bps
What is Bharat Heavy Electricals Ltd's trailing twelve month (TTM) performance?
Bharat Heavy Electricals Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹813 Cr
- TTM PAT Growth: +56.4% YoY
- TTM Revenue: ₹30,000 Cr
- TTM Revenue Growth: +10.4% YoY
- TTM Operating Margin: 4.5%
Is Bharat Heavy Electricals Ltd overvalued or undervalued?
Bharat Heavy Electricals Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 151.0x
- Price-to-Book: 5.0x
What is Bharat Heavy Electricals Ltd's current PE ratio?
Bharat Heavy Electricals Ltd's current PE ratio is 151.0x.
- Current PE: 151.0x
- Market Cap: 1.2 Lakh Cr
- Dividend Yield: 0.14%
How does Bharat Heavy Electricals Ltd's valuation compare to its history?
Bharat Heavy Electricals Ltd's current PE is 151.0x.
- Current PE: 151.0x
- Valuation Assessment: Significantly Overvalued
What is Bharat Heavy Electricals Ltd's price-to-book ratio?
Bharat Heavy Electricals Ltd's price-to-book ratio is 5.0x.
- Price-to-Book (P/B): 5.0x
- Book Value per Share: ₹70
- Current Price: ₹352
Is Bharat Heavy Electricals Ltd a fundamentally strong company?
Bharat Heavy Electricals Ltd is rated Weak with a fundamental score of 31.47/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +16.4% (10% weight)
- PAT Growth YoY: +188.9% (10% weight)
- PAT Growth QoQ: +4.0% (10% weight)
- Margins stable (10% weight)
Is Bharat Heavy Electricals Ltd debt free?
Bharat Heavy Electricals Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹11,000 Cr
What is Bharat Heavy Electricals Ltd's return on equity (ROE) and ROCE?
Bharat Heavy Electricals Ltd's return ratios over recent years
- FY2023: ROCE 4.0%
- FY2024: ROCE 3.0%
- FY2025: ROCE 5.0%
Is Bharat Heavy Electricals Ltd's cash flow positive?
Bharat Heavy Electricals Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹2,000 Cr
- Free Cash Flow (FCF): ₹-539 Cr
- CFO/PAT Ratio: 410% (strong cash conversion)
What is Bharat Heavy Electricals Ltd's dividend yield?
Bharat Heavy Electricals Ltd's current dividend yield is 0.14%.
- Dividend Yield: 0.14%
- Current Price: ₹352
Who holds Bharat Heavy Electricals Ltd shares — promoters, FII, DII?
Bharat Heavy Electricals Ltd's shareholding pattern (Mar 2026)
- Promoters: 58.2%
- FII (Foreign): 7.2%
- DII (Domestic): 23.9%
- Public: 10.6%
Is promoter holding increasing or decreasing in Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 58.2% (Mar 2026)
- Previous Quarter: 63.2% (Dec 2025)
- Change: -5.00% (decreasing — worth monitoring)
How long has Bharat Heavy Electricals Ltd been outperforming Nifty 500?
Bharat Heavy Electricals Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Bharat Heavy Electricals Ltd a new momentum entry or an established outperformer?
Bharat Heavy Electricals Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd has 3 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Massive order book ensures long-term utilization.
- Operating Leverage Inflection — Fixed cost absorption on higher revenue will drive PAT exponentially.
- Order Inflow guidance raised — Surge in thermal power tenders
What are the key risks in Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd has 2 key risks worth monitoring
- [MEDIUM] Fluctuations in steel and copper prices impact fixed-price contracts — Fluctuations in steel and copper prices impact fixed-price contracts.
- [LOW] Delays in site readiness by customers affecting execution timelines — Delays in site readiness by customers affecting execution timelines.
What is Bharat Heavy Electricals Ltd's management guidance for growth?
Bharat Heavy Electricals Ltd's management has provided the following forward guidance for FY25-26
- Revenue outlook: INR 30,000 Crore+ annual revenue target
- OPM guidance: 10%
- Capex plan: ₹1500 Cr for Modernization and Green Hydrogen capacity
- Management tone: bullish
- Milestone: [RAISED] Order Inflow: INR 25,000 Cr → INR 40,000 Cr+
What sector-specific metrics matter most for Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd's most important sub-sector-specific KPIs from the latest concall
- Total Order Book: INR 1,08,618 Crore (YoY 5.4%) (QoQ Not Given) — Driven by major wins in the power and industrial segments during the fiscal year.
- Book-to-Bill Ratio: 4.6x (YoY Not Given) (QoQ Not Given) — High ratio due to massive order inflows outpacing current execution cycles.
- Power Segment Revenue Share: 78.4% (YoY 1.2%) (QoQ Not Given) — Increased execution of thermal projects compared to the industrial segment.
- Debtor Days: 412 days (YoY Reduced) (QoQ Not Given) — Improved collections from state power utilities under the Late Payment Surcharge (LPS) scheme.
Is Bharat Heavy Electricals Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Bharat Heavy Electricals Ltd may be worth studying
- Earnings growing at +188.9% YoY
- Cash flow is positive — CFO ₹2,000 Cr
What is the investment thesis for Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +16.4% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Fluctuations in steel and copper prices impact fixed-price contracts
What is the future outlook for Bharat Heavy Electricals Ltd?
Bharat Heavy Electricals Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Fluctuations in steel and copper prices impact fixed-price contracts
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.