BHEL Reports Strong Profit Growth, Ather Energy Narrows Losses

Bharat Heavy Electricals Limited (BHEL) posted a significant leap in its fourth quarter of fiscal year 2025-26, with net profit soaring 155% year-on-year to ₹1,290 crore. This surge was powered by a 36.9% increase in revenue, reaching ₹12,310 crore. A key factor behind this impressive financial performance was the substantial improvement in EBITDA margins, which expanded to 14.2% from 9.2% a year earlier. The company also saw a rise in other income to ₹243 crore. BHEL's strong order backlog, valued at approximately ₹2.4 lakh crore, provides considerable revenue visibility through fiscal year 2029-30.

In the same period, Ather Energy, a player in the electric vehicle sector, reported its net loss narrowed to ₹100 crore for the March quarter. This improvement came alongside a robust 73.7% growth in revenue, which climbed to ₹1,175 crore. Ather's strategy is increasingly focused on leveraging its operating capacity to drive profitability as sales volumes grow. The company achieved its highest quarterly sales volume of 67,851 units in Q4 FY26, contributing to an estimated nationwide market share of 17.4%.

BHEL brought online 8.9 GW of power capacity during fiscal year 2026 and secured new orders totaling around ₹75,000 crore. As of May 4, 2026, BHEL's shares traded around ₹344.50. Analysts hold varied views on the company's future prospects, with target prices ranging from ₹272.91 to ₹393. JM Financial maintains a 'Buy' rating with a target of ₹393, citing improving execution and order book visibility. However, some market analyses suggest BHEL might be modestly overvalued, with a Price-to-Earnings (P/E) ratio around 147.22x as of April 30, 2026, trading above its estimated fair value.

Ather Energy's reduced net loss reflects considerable progress. EBITDA losses also decreased significantly year-on-year to ₹69.5 crore from ₹172 crore. These results are being achieved amidst evolving government policies, including the extension of subsidies for electric two-wheelers until July 2026, which supports consumer affordability. Ather has secured substantial funding, achieving unicorn status and a valuation reported to exceed $1.3 billion in recent rounds. The company has previously filed draft documents for a potential Initial Public Offering (IPO).

While BHEL's market capitalization is around ₹1.16 to ₹1.21 lakh crore, its high P/E ratio indicates investor optimism about its future growth, driven by its extensive order book and role in India's infrastructure. However, differing analyst price targets suggest mixed market sentiment regarding the stock's current valuation.

Ather Energy faces a competitive EV market, with rivals like Ola Electric, Bajaj Auto, and TVS Motors holding substantial shares. The company's path to sustained profitability beyond scaling revenue and managing costs will depend on continuous innovation and efficient cost management in a price-sensitive market. Potential pressures from rising raw material costs and foreign exchange movements are also factors.

BHEL is expected to benefit from India's long-term infrastructure and energy transition projects. Diversification into defence manufacturing and continued focus on power sector execution are key growth drivers. Ather Energy's future includes expanding market share and charging infrastructure, alongside operational optimization. The potential IPO remains a significant event for its growth and investor transparency in the dynamic Indian EV market.