Bharat Heavy Electricals Limited has been fined ₹5,49,880 each by BSE Limited and National Stock Exchange of India Ltd. for non-compliance with board composition requirements for the quarter ending March 31, 2026. The penalties, inclusive of GST, were imposed following notices dated May 27, 2026, under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The fines stem from lapses in adhering to specific clauses of Regulation 17, 18, and 19 regarding the structure of the Board and its key committees.

Non-compliance details

As on March 31, 2026, the company failed to meet the requirements of Regulation 17(1) as the number of Independent Directors (IDs) was less than 50% of the actual strength of the Board. This included the requirement of having at least one independent woman director. While the Audit Committee and Nomination and Remuneration Committee (NRC) were compliant until March 27, 2026, the completion of the tenure of two Independent Directors on that date left only one ID on the Board. This resulted in a breach of composition norms for the Audit Committee under Regulation 18(1) and the NRC under Regulation 19(1) effective March 28, 2026.

Regulatory response and waiver proposal

In response to the penalties, Bharat Heavy Electricals indicated that it proposes to seek a waiver of the fines levied by the stock exchanges. The company referenced the provisions of the SOP Circular issued by the exchanges in this regard. Management highlighted that as a Government Company, the appointment of Directors, including Independent Directors, is conducted by the Government of India. The firm stated it is regularly pursuing the matter with the government to secure the appointment of the requisite number of Independent Directors to ensure future compliance with the regulations.

Bharat Heavy Electricals Limited has released its audited standalone and consolidated financial results for the quarter and year ended 31st March 2026, as published in Mint (English) and Haribhoomi (Hindi) newspapers on 5th May 2026. The results were reviewed and approved by the Board of Directors at its meeting held on 4th May 2026. The company reported a strong performance across key financial metrics on both a quarterly and annual basis.

Quarterly Performance: Q4 FY26 vs Q4 FY25

BHEL's standalone total income from operations for the quarter ended 31st March 2026 rose sharply to ₹12,310.37 crore from ₹8,993.37 crore in the corresponding quarter of the previous year. Net profit after tax for the quarter surged to ₹1,282.68 crore compared to ₹504.05 crore in Q4 FY25. The following table presents a detailed comparison of key standalone and consolidated metrics for Q4 FY26 versus Q4 FY25:

Full-Year Performance: FY26 vs FY25

For the full year ended 31st March 2026, BHEL's standalone total income from operations grew to ₹33,782.18 crore from ₹28,339.48 crore in FY25. Annual standalone net profit after tax reached ₹1,577.95 crore, compared to ₹512.97 crore in the previous year. The table below summarises the full-year financial performance on both standalone and consolidated bases:

Balance Sheet Highlights

As of 31st March 2026, BHEL's standalone net worth stood at ₹26,516.49 crore, up from ₹25,113.01 crore as of 31st March 2025. On a consolidated basis, net worth was ₹26,146.60 crore compared to ₹24,722.16 crore in the prior year. Other equity on a standalone basis increased to ₹25,820.08 crore from ₹24,416.60 crore, while paid-up equity share capital remained unchanged at ₹696.41 crore (face value ₹2 per share). The Capital Redemption Reserve stood at ₹37.87 crore, unchanged from the previous year.

Dividend and Key Disclosures

The Board of Directors has recommended a final dividend of ₹1.40 per share on a face value of ₹2 per share for FY26. The results were directly placed before the Board Meeting held on 4th May 2026, as the Board Level Audit Committee could not be convened due to the presence of only one Independent Director on the Board, resulting in a lack of quorum.

Notably, trade receivables include an overdue amount of ₹196 crore (USD 23 million), post receipt of USD 2.5 million in the current year, from customer STPG (formerly NEC Sudan), which remains stuck due to the ongoing crisis in Sudan. This amount has been considered good and not provided for. If provided, the impact on profit before tax would be ₹179 crore (net of ECL provision). The previous year's corresponding figure was ₹211 crore (USD 25.5 million).

Joint Ventures and Corporate Structure

BHEL's joint ventures during the year include:

• BHEL-GE Gas Turbine Services Pvt. Ltd. (BGGTS)
• Raichur Power Corporation Ltd. (RPCL)
• NTPC-BHEL Power Projects Pvt. Ltd. (NBPPL)
• Bharat Coal Gasification and Chemicals Limited (BCGCL)

The company does not have any subsidiary or associate during the year. The full financial results, including disclosures as per Regulation 52(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are available on the stock exchange websites and on the company's website at www.bhel.com .