BHEL: Record Order Book Meets Improving Profitability

Bharat Heavy Electricals Ltd. (BHEL) is showing a meaningful recovery in revenue, profitability and order execution, supported by the revival in India’s power and infrastructure capex cycle. However, the improvement in earnings has yet to translate into proportionately higher returns on capital, making capital efficiency an important monitorable.

’s outstanding order book reached a record ₹2.6 lakh crore in Q1FY27, up around 27% year-on-year. The book is more than seven times its trailing twelve-month revenue, providing substantial execution visibility over the coming years. Power accounts for about 81% of the order book, while industry contributes 17% and exports around 2%. Importantly, the order book is gradually becoming more diversified. Around ₹70,000 crore comes from non-thermal businesses, including nuclear, transmission, defence, transport, coal gasification, hydro and spares & services. This provides BHEL with opportunities beyond the traditional thermal power cycle.