BHEL Swings to ₹455 Cr Loss in Q1 — Power Segment Drags Heavyweight Down

State-run engineering giant **Bharat Heavy Electricals Ltd (BHEL)** reported a **net loss of ₹455 crore** in Q1 FY26, reversing from a profit of ₹504 crore in the previous quarter. While revenue stayed flat YoY at ₹5,487 crore, it fell sharply QoQ by 39%, reflecting seasonal weakness and slower execution. The **Power segment**, which accounts for 70%+ of BHEL's revenue, recorded a staggering ₹510 crore loss before tax, highlighting ongoing challenges in large-scale thermal projects. In contrast, the **Industry segment** remained in the green, posting ₹307 crore in pre-tax profits. Two sticky receivables — **₹211 crore from war-torn Sudan** and **₹185 crore from RVUNL’s Suratgarh project** — were not provided for, with management deeming them recoverable. If provisioned, losses would have swelled to **₹743 crore**. Despite the setback, BHEL remains **debt-free**, with a manageable current ratio of 1.5 and no defaults on its ₹2,100 crore commercial paper. 👉 **Verdict**: A tough quarter for BHEL with red flags in the power division, but its clean balance sheet and improving industrial segment offer some hope.