BHEL Q2 FY27: Profit Jumps 119% YoY.....

BHEL delivered a strong quarterly performance, with net profit more than doubling year-on-year. Higher revenue and a sharp improvement in operating margins supported the growth. However, a few accounting and corporate governance concerns remain. Financial Performance (Consolidated) Revenue from Operations: ₹9,300.35 Cr ↳ YoY: +23.8% | QoQ: +20.8% Total Income: ₹9,553.01 Cr ↳ YoY: +24.3% | QoQ: +20.7% Profit Before Tax: ₹1,089.07 Cr ↳ YoY: +118.1% | QoQ: +114.5% Net Profit: ₹820.94 Cr ↳ YoY: +119.0% | QoQ: +117.9% Positives Better Margins: Operating margin improved to 11.2%, versus 7.9% a year ago and 6.7% in Q1. Lower Debt Burden: Interest costs declined 36% YoY. Borrowings came down to ₹5,809 Cr from ₹7,950 Cr at the end of March. Cash Flow Improvement: H1 operating cash flow turned positive at ₹1,907 Cr, against an outflow of ₹1,182 Cr last year. Customer advances of ₹3,073 Cr supported the improvement. Strong Order Pipeline: The order book stood at approximately ₹2.6 lakh Cr as of June, providing substantial visibility for future execution. Expansion Plans: BHEL invested ₹490 Cr in joint ventures during H1. It also approved ₹3,064 Cr for its coal gasification JV with Coal India. Negatives: Other income of ₹253 Cr accounted for around 23% of profit before tax. Inventory increased to ₹15,588 Cr from ₹13,335 Cr in March. Its impact on working capital needs monitoring. ₹196 Cr due from a customer remains overdue. A potential write-off could reduce PBT by ₹176 Cr. BHEL disclosed that its board had no independent director and its audit committee was not compliant with SEBI requirements. Overall View: Strong profit growth, improving margins and a large order book are encouraging. However, cash flow sustainability, receivables and corporate governance require close monitoring. Disclaimer: This is for informational and educational purposes only. Not a buy/sell recommendation.