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BHEL vs. L&T: Business Models, FY 2025–26 Financials and Risks Compared

BHEL focuses more on power and industrial engineering; L&T spans a broader project and infrastructure portfolio. Their FY 2025–26 disclosures show different revenue bases and order books, but not a definitive ranking of profitability, risk or investment value.
From TheFinanceBase Team6 min to read
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BHEL is more focused on power and industrial engineering; L&T is a much broader engineering and infrastructure group. For FY 2025–26, BHEL reported provisional, unaudited turnover of about ₹32,350 crore, while L&T reported consolidated revenue of ₹2,85,874 crore. Their order books also differ in scale and scope. Those figures show different business profiles and visibility into future work—not which company is more profitable, less risky or the better investment.

How BHEL and L&T differ as businesses

BHEL: power and industrial engineering

Bharat Heavy Electricals Limited (BHEL) is an engineering and manufacturing company centered on power and industrial sectors. In its FY 2025–26 release, the company reported around ₹59,000 crore of power-sector orders and around ₹16,000 crore of industrial-segment orders. The industrial work spanned areas including transportation, transmission, defence, process industries and industrial equipment. BHEL also reported commissioning or synchronization of around 8.9 GW of power capacity during the year. These are company-reported figures in its April 17, 2026 release; the release does not make them a measure of profit or cash generation.

L&T: a broader engineering and infrastructure group

Larsen & Toubro (L&T) operates across a wider portfolio. Its FY 2025–26 financial review describes infrastructure as its largest order-book segment, alongside power transmission and distribution, renewables, hydrocarbons and CarbonLite Solutions. Infrastructure made up 57% of the group order book at year-end and accounted for 46% of the year’s overall order inflow. These percentages refer to different denominators: the first is a share of the order book, the second a share of order inflow.

The companies overlap in power-related work, but they are not like-for-like businesses. BHEL’s cited profile is more concentrated in power and industrial engineering; L&T’s includes a broader range of projects and activities. That difference matters when interpreting growth, order books and exposure to individual sectors.

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What the FY 2025–26 figures show

The figures below come from BHEL’s April 17, 2026 release and L&T’s FY 2025–26 financial review. BHEL labels its turnover figure provisional and unaudited. L&T’s revenue figure is consolidated group revenue, so the two revenue figures should not be treated as identical accounting measures.

Measure BHEL L&T How to read it
FY 2025–26 revenue or turnover About ₹32,350 crore provisional, unaudited turnover, up 18% year over year (BHEL, April 17, 2026 release). ₹2,85,874 crore consolidated revenue, up 11.8% year over year (L&T, FY 2025–26 financial review). Different reporting descriptions and scopes; these growth rates do not establish relative margins or profitability.
FY 2025–26 order inflow About ₹75,000 crore (BHEL, April 17, 2026 release). Not stated as a comparable total in the cited FY 2025–26 financial review; infrastructure represented 46% of L&T’s overall inflow. Inflow is new work booked during the period, not work already converted into revenue.
Outstanding order book at year-end About ₹2.4 lakh crore (BHEL, April 17, 2026 release). ₹7,40,327 crore at March 31, 2026, up 27.8% year over year (L&T, FY 2025–26 financial review). The order books differ in business scope. Neither figure by itself establishes execution timing, margins, collections or shareholder returns.
Business mix detail reported About ₹59,000 crore in power-sector orders and about ₹16,000 crore in industrial-segment orders (BHEL, April 17, 2026 release). Infrastructure was 57% of the order book and 46% of order inflow (L&T, FY 2025–26 financial review). BHEL’s figures are order amounts by sector; L&T’s are shares of the order book and inflow, respectively.
International exposure A comparable international revenue or order-book percentage is not stated in the cited BHEL FY 2025–26 release. International orders were 52% of the order book; international revenue was 54% of group revenue (L&T, FY 2025–26 financial review). The available figures quantify L&T’s exposure but do not establish an equivalent BHEL comparison.

What an order book can—and cannot—tell you

It indicates contracted work, not completed sales

An order book is a measure of work awaiting execution under the company’s reporting definitions. It can indicate potential future activity, but an order becomes recognized revenue as work is performed under applicable accounting rules. The size of the backlog alone does not show when that will happen or how much revenue any particular project will generate in a given year.

It does not reveal project economics or cash collection

Headline order-book figures do not disclose the margin on each contract, the effect of input-cost changes, the extent of price-escalation protection, likely cost overruns, cancellation terms or the customer’s payment record. A large backlog can therefore coexist with weak project returns or delayed cash receipts. Those questions require the underlying financial statements, notes and company disclosures, not just an order total.

Execution figures need context too

BHEL’s reported commissioning or synchronization of around 8.9 GW is a measure of reported project activity, not a direct substitute for revenue, operating profit or cash flow. L&T’s review describes execution progress as a driver of revenue. Neither headline summary provides enough detail to rank the two companies on project-level execution quality.

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What is—and is not—established about financial strength

The available headline figures establish revenue or turnover growth and order visibility, but they do not support a complete financial-strength scorecard. BHEL’s cited revenue number is explicitly provisional and unaudited; L&T’s number is consolidated group revenue. A rigorous comparison would first align the reporting period and consolidation basis, then compare audited revenue, operating profit, net profit, cash flow, debt and working capital.

BHEL’s official results index lists audited FY 2025–26 results published May 4, 2026, and its annual-reports index lists the FY 2025–26 annual report published July 10, 2026. The company’s investor-relations page lists financial information and reporting resources. L&T’s annual-report page and archive identify its FY 2025–26 integrated annual report, including risk-management sections. Those filings are the appropriate place to check audited statement figures and accounting notes before drawing conclusions about profitability, leverage or liquidity. A current valuation comparison would additionally require dated share prices, shares outstanding, net debt and cash-flow measures; the cited company disclosures do not establish whether either share is attractively priced.

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Key risks to investigate for both companies

Project execution and timing

Large engineering projects can take time to execute, and delays can shift revenue recognition, commissioning milestones and customer payments. Examine delivery schedules, project progress and the reasons for delays rather than assuming that all booked work will convert on a predictable timetable.

Margins and contract terms

Look for project-margin disclosures, cost-escalation clauses, exposure to changes in material or labor costs, and provisions for cancellations or disputes. The cited headline reports do not establish comparative contract profitability or the extent of protection against cost increases.

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Working capital and collections

Assess receivables, contract assets, inventory and operating cash flow in the audited statements and notes. These show how much funding is tied up in delivering work and whether reported activity is translating into cash. The headline figures in the FY 2025–26 materials do not provide a basis to rank BHEL and L&T on collection quality or working-capital efficiency.

Sector, customer and geographic concentration

L&T’s FY 2025–26 review reports that international orders represented 52% of its order book and international revenue represented 54% of group revenue. It also reports a 57% infrastructure share of the group order book. The cited BHEL release does not give a comparable international revenue or order-book percentage, so those disclosures alone cannot establish which company has the more concentrated customer or geographic exposure. Full annual reports are needed for a like-for-like assessment.

Valuation and investment risk

Business growth and a large backlog do not make a share cheap, and they do not establish likely shareholder returns. Valuation depends on factors including the current share price, expected cash generation, balance-sheet obligations and the risks already reflected in market expectations. The cited disclosures do not provide the current market data needed to decide whether either company is attractively valued.

How to make a fair comparison

  1. Align the period and accounting scope. Compare the same financial year and distinguish standalone from consolidated statements. Do not treat BHEL’s provisional, unaudited release turnover as interchangeable with L&T’s consolidated revenue.
  2. Use audited statements for financial health. Compare revenue, operating profit, net profit, cash flow, debt and working capital from the relevant audited statements, with notes that clarify definitions and one-off items.
  3. Read the order book alongside its composition. Check sector, geography, customer, contract terms and expected execution timing. Where a comparable figure is not disclosed, leave the comparison open rather than inferring it from a different metric.
  4. Separate company analysis from share valuation. Only after assessing business quality and financial risk should you add dated market data and valuation measures. A larger company or order book is not, by itself, an investment verdict.

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