BHEL's profit comeback is real. Can its order boom sustain the rally?

BHEL reported a Q1FY27 net profit of Rs 377 crore, its first Q1 profit after seven consecutive years of losses, with consolidated Ebitda swinging to Rs 504 crore from a Rs 537 crore loss a year earlier, beating Street estimates. Revenue rose 40 percent to Rs 7,700 crore, gross margin expanded 200 basis points, and order inflows doubled year-on-year to Rs 26,745 crore, lifting the order backlog 27 percent to Rs 2.6 trillion or about 7.2 times trailing twelve-month sales. Private-sector power projects now make up 28 percent of the order book versus negligible contribution in FY23, though competition from Chinese firms in transmission tenders poses a risk; the stock trades at around 45 times estimated FY27 earnings.