Bharat Bijlee’s Net Profit in June Quarter Up by 17%

Mumbai, July 23, 2025: Bharat Bijlee Ltd’s (BSE: 503960, NSE: BBL) net profit in June quarter increased year-on-year (YoY) by 17% to ₹27.88 crore. Revenue from operations stood at ₹464.90 crore, up 24% YoY from ₹374.76 crore.

Financial Snapshot (₹ in crore)

 For Q1FY26, Bharat Bijlee reported a Revenue from Operations of ₹464.90 crore, marking a 24.04% increase year-on-year, though a sequential decline of 24.91% from Q4FY25’s ₹619.10 crore. Total Income for the quarter was ₹475.18 crore, up 23.63% YoY but down 24.89% quarter-on-quarter. The company’s EBITDA (Profit before Tax) stood at ₹37.03 crore, representing a 16.45% YoY increase but a 45.61% QoQ decrease from ₹68.10 crore in Q4FY25. Net Profit for Q1FY26 was ₹27.88 crore, growing 16.49% YoY from ₹23.93 crore in Q1FY25, but showing a 44.60% drop from Q4FY25’s ₹50.31 crore. Consequently, Earnings Per Share (EPS) was ₹24.66, up 16.48% YoY but down 44.61% QoQ. Despite sequential moderation, the company delivered a robust YoY performance supported by strong segmental growth and cost control.

Highlight: Despite sequential moderation, the company delivered a robust YoY performance supported by strong segmental growth and cost control.

Segment Performance

In terms of segmental revenue for Q1FY26, the Power Systems division contributed ₹266.13 crore, registering a significant 45.01% year-on-year increase. The Industrial Systems segment recorded ₹198.77 crore, showing a more modest growth of 3.94% year-on-year. Power Systems notably contributed the majority to the top-line growth, while Industrial Systems maintained a stable performance.

Segmental Profit Before Tax (PBT)

Looking at Segmental Profit Before Tax (PBT) for Q1FY26, Power Systems reported a PBT of ₹35.57 crore, marking a strong 30.96% year-on-year growth compared to ₹27.15 crore in Q1FY25. Conversely, the Industrial Systems segment’s PBT for Q1FY26 was ₹14.84 crore, indicating a 17.76% year-on-year decline from ₹18.04 crore in Q1FY25. The Power Systems division clearly demonstrated a notable rise in profitability, whereas the Industrial Systems segment experienced some softness in margins.

Assets & Liabilities

As of Q1FY26, Bharat Bijlee’s Total Assets were ₹2,941.63 crore, a slight decrease from ₹3,033.03 crore in Q1FY25. Total Liabilities stood at ₹771.11 crore in Q1FY26, an increase from ₹684.73 crore in Q1FY25. The company continues to maintain a healthy balance sheet with significant unallocable assets amounting to ₹2,021.40 crore.

Financial Health and Valuation

Bharat Bijlee’s current share price as of 23 July 2025, 2:05 PM IST, is around ₹3,157.80, reflecting a decline of approximately 3.53% today. The company’s P/E Ratio (TTM) stands at 26.81x, which is significantly lower than the sector P/E of 90.51x, suggesting that Bharat Bijlee might be undervalued compared to its peers in the electrical equipment industry. Its Earnings Per Share (TTM) is ₹118.24.

Other key financial metrics include:

• Market Capitalisation: ₹3,568.56 crore (as of 23 July 2025)
• 52-Week High: ₹5,470.00
• 52-Week Low: ₹2,350.00
• Dividend Yield: 1.07%
• Return on Equity (FY25): 6.88%
• Return on Capital Employed (FY25): 9.13%
• Debt to Equity (FY24): 0.04x (indicating a very low debt burden)
• Current Ratio (FY24): 2.19x (showing strong liquidity)
• The company’s P/B ratio is 1.95x, and its Net Worth has shown significant growth, increasing by 35.38% over the previous year (as of March 2024).

Corporate Announcements

The Board approved the appointment of M/s N L Bhatia & Associates as Secretarial Auditors for FY26–FY30, subject to shareholder approval at the upcoming 78th AGM. The 78th Annual General Meeting is scheduled for 11 September 2025, via video conferencing. For the purpose of the AGM and dividend distribution, the Register of Members will remain closed from 4 to 11 September 2025.

Management Commentary

Nikhil J. Danani, Vice Chairman & Managing Director, reaffirmed confidence in the company’s long-term strategy, highlighting the continued demand in the Power Systems space and ongoing operational efficiencies across both segments.

What Does This Mean For The Investors?

Bharat Bijlee’s Q1FY26 results indicate strong year-on-year growth, particularly in revenue and profitability, driven by robust performance in its Power Systems segment. Despite sequential moderation in earnings due to Q4 seasonality, the company has maintained operational efficiency and profitability. Its low debt levels (D/E of 0.04x), strong liquidity (current ratio of 2.19x), and healthy balance sheet enhance its financial resilience. With a P/E of 26.81x, well below the industry average of 90.51x, the stock may be undervalued, presenting a potential opportunity for long-term investors. However, investors should monitor margin pressures in the Industrial Systems segment.

About the Company

Bharat Bijlee Limited is a listed electrical engineering company engaged in the business of transformers, turnkey substation projects, electric motors, drives, automation systems, and magnet technology machines. The company is listed on both BSE and NSE. Its operations span both Power Systems and Industrial Systems, catering to a broad range of sectors including infrastructure, manufacturing, and utilities.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/f8c9d3eb-4e35-4dd3-acf3-013accafd22a.pdf

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