BHEL Q4 Results: Maharatna PSU’s profit rises 3%, announces 25% dividend to soothe long-suffering investors

BHEL Q4 Results and Dividend Announcement: Bharat Heavy Electricals Ltd (BHEL), a Maharatna public sector giant, reported a modest 3 per cent year-on-year increase in standalone net profit for the March 2025 quarter, while also announcing a 25 per cent final dividend. The profit for the quarter stood at Rs 504 crore, up from Rs 489.6 crore in the same period last year.

After a challenging year on the stock exchanges, the company’s revenue and operating margins both increased, which helped regain some investor confidence. Revenue for the fourth quarter was Rs 8,993 crore, up 8.9 per cent from Rs 8,260 crore in the previous year.

25 paise dividend for FY25; AGM to confirm payment window

In a regulatory filing to the stock exchanges, BHEL’s board proposed a final dividend of 25 paise per equity share of face value Rs 2. The dividend will be paid within 30 days from the conclusion of the upcoming AGM (Annual General Meeting), subject to shareholder approval.

This dividend announcement comes as a balm for long-term shareholders, who saw the stock fall over 15 per cent in the past year despite a recent recovery.

Margins and operating profit improve in Q4

Operating profit for the quarter surged 14.3 per cent to Rs 832 crore, compared to Rs 728 crore in the same quarter last year. The PSU’s EBITDA margin also improved from 8.8 per cent to 9.2 per cent year-on-year, indicating better cost control and operational efficiency.

For the full financial year FY25, BHEL reported a standalone net profit of Rs 533.9 crore, up 89 per cent from Rs 282.2 crore in FY24. Revenue rose 18.6 per cent to Rs 28,339 crore from Rs 23,892 crore a year ago.

Stock reacts mildly post-results

On Friday, BHEL shares edged up post the results announcement. The stock closed 1.16 per cent higher at Rs 248.55 on the BSE and up 1.03 per cent at Rs 248.21 on the NSE. However, it still remains well below its 52-week high of Rs 335.35.

So far in 2025, BHEL’s stock has gained 7.2 per cent. In the last six months, the stock delivered a 12.3 per cent return. However, it is still down over 15 per cent compared to its levels a year ago.

Outlook: Can dividend and earnings revive the stock’s mojo?

Analysts say the dividend declaration may support short-term sentiment, but a sustained rally would depend on execution, fresh order wins, and margin maintenance. The public sector engineering giant continues to play a key role in India’s infrastructure build-out, and FY26 execution will be closely watched.

With a market cap hovering near Rs 87,000 crore, BHEL is still a heavyweight among PSUs. Investors will now eye commentary from management post AGM and order inflow trends for signs of long-term growth revival.