1. At a Glance
Old-school transformer king Bharat Bijlee delivered a silent but sturdy Q1. PAT ₹28 Cr, Revenue ₹465 Cr, OPM 7%. Nothing flashy, nothing scandalous — just solid electricals in a PSU-dominated space. But stock tanked 7% — investors wanted fireworks, not fuses.
2. Introduction with Hook
If Siemens is a German luxury sedan, Bharat Bijlee is the Indian Premier Padmini — reliable, boxy, and somehow still running after 75+ years.
Founded in 1946, this Mumbai-based electromechanical veteran makes transformers, motors, and automation systems. Think of them as India’s lesser-known backbone in power infra, elevators, and EV drives.
But here’s the zinger — while newer peers ride solar buzz and EV euphoria, Bharat Bijlee grinds out decent numbers… just not with Twitter-friendly headlines.
3. Business Model (WTF Do They Even Do?)
Two Core Segments:
- Power Systems: Transformers & switchgears – used in transmission, substations, and EHV projects.
- Industrial Systems: Motors, drives, elevator systems, automation.
Also dabbles in:
- Electrical EPC for substations
- Drives for elevators
- Industrial automation (because motors alone weren’t cool enough)
Basically, they do the unsexy but essential plumbing of India’s industrial and electrical grid.
4. Financials Overview
Q1 FY26 Highlights:
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹465 Cr | +5% |
| EBITDA | ₹34 Cr | +3% |
| PAT | ₹28 Cr | +16% |
| OPM | 7% | Flat |
Last 12M (TTM):
- Revenue: ₹1,992 Cr
- PAT: ₹138 Cr
- OPM: 9%
Steady margin play — not an earnings supernova, but no explosions either.
5. Valuation
CMP: ₹3,041
Book Value: ₹1,717
P/E: 25x
P/BV: 1.77x
Method 1: P/E
- TTM PAT: ₹138 Cr
- Shares: 1.10 Cr
- EPS: ₹121.7
- Fair P/E Range: 16x–20x
- Fair Value Range: ₹1,950 – ₹2,440
Method 2: P/BV
- Book Value: ₹1,717
- Fair P/BV: 1.5x–2.0x
- Fair Value Range: ₹2,575 – ₹3,435
Conclusion: At ₹3,041, it’s trading near the top-end of the rational band. After the 45% fall from 52-week highs, it’s more “fairly valued” than fire sale.
6. What’s Cooking – News, Triggers, Drama
- Q1 Results solid — not spectacular. PAT +16% but sales only +5%.
- Earnings call scheduled for AGM in Sept.
- Dividend announced: 30% payout maintained.
- Working capital reduced — from 97 to 59 days. CFO deserves a raise.
No frauds, no FPOs, no management walkouts — just slow-burn improvements.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹6 Cr |
| Reserves | ₹1,936 Cr |
| Borrowings | ₹87 Cr |
| Investments | ₹1,341 Cr |
| Total Assets | ₹2,622 Cr |
Company is basically debt-free. In fact, they’re richer in investments than in capex. Think of it like an uncle with more FDs than expenses.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹52 Cr | ₹-10 Cr | ₹-31 Cr | ₹11 Cr |
| FY24 | ₹241 Cr | ₹-52 Cr | ₹-182 Cr | ₹7 Cr |
| FY25 | ₹175 Cr | ₹-54 Cr | ₹-123 Cr | ₹-2 Cr |
Healthy ops cash, consistent dividend payments. Investing in themselves at a boring pace — just like any financially responsible Indian middle-class dad.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 9.5% |
| ROE | 7.0% |
| D/E | 0.05x |
| OPM | 9% |
| EPS | ₹121.74 |
Returns are lower than the recent Nifty 50 SIP — but hey, it’s not burning cash either.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,418 Cr | ₹120 Cr | ₹83 Cr |
| FY24 | ₹1,872 Cr | ₹175 Cr | ₹131 Cr |
| FY25 | ₹1,902 Cr | ₹167 Cr | ₹134 Cr |
Topline growth is steady, profit margin is inching up. Don’t expect multibagger stories, but don’t expect sudden death either.
11. Peer Comparison
| Company | Rev (TTM) | PAT (TTM) | ROE | P/E |
|---|---|---|---|---|
| Waaree Energies | ₹14,445 Cr | ₹1,870 Cr | 27.6% | 49x |
| Apar Industries | ₹18,581 Cr | ₹821 Cr | 19.6% | 44x |
| Genus Power | ₹2,442 Cr | ₹293 Cr | 17.2% | 39x |
| Bharat Bijlee | ₹1,992 Cr | ₹138 Cr | 7.0% | 25x |
BBL is the slow train when the sector’s running bullet-speed — but it’s also more affordable, and rarely derails.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun ’23 | Jun ’25 |
|---|---|---|
| Promoters | 33.86% | 33.65% |
| FIIs | 1.68% | 3.63% |
| DIIs | 5.04% | 17.96% |
| Public | 59.43% | 44.75% |
Promoters stable. DIIs have clearly spotted the cash flow party. FIIs sniffing around. Public slightly trimming — likely chasing hotter names.
13. EduInvesting Verdict™
Bharat Bijlee is the classic engineering blue-chip that doesn’t scream for attention but quietly delivers.
Pros:
- Debt-free, cash-rich
- Strong dividend payout
- Improving efficiency & working capital
Cons:
- Low ROE/ROCE
- Promoter holding still below 35%
- Sector lacks the buzz of solar or EV hype
Final Word:
Not the next multibagger, but a grounded compounder. For those who like their volts steady and their valuations rational.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Bharat Bijlee, Q1FY26, Transformers, Motors, Electrical Infra, EduInvesting Premium
