Infosys partners with Anthropic to deploy enterprise AI solutions across sectors

Infosys Partners with Anthropic to Accelerate Enterprise AI Adoption Across Key Industries

Strategic Collaboration to Deliver Advanced AI Solutions

Infosys has announced a strategic collaboration with AI research and safety firm Anthropic to develop and deploy advanced enterprise artificial intelligence (AI) solutions across multiple industries. The partnership will initially focus on the telecommunications sector before expanding into financial services, manufacturing, and software development.

The collaboration underscores a shared objective: to move beyond experimental AI deployments and deliver scalable, secure, and industry-ready AI systems capable of driving meaningful business transformation.

Telecom Sector to Lead the Rollout

The partnership will begin with the establishment of a dedicated Anthropic Center of Excellence within the telecommunications sector. This center will focus on designing and deploying AI agents tailored to telecom-specific operations.

In telecom, AI agents are expected to:

• Modernize network operations
• Streamline customer lifecycle management
• Enhance service delivery efficiency

By embedding AI into core operational workflows, telecom providers can improve responsiveness, reduce operational bottlenecks, and enhance customer experience.

Integration of Claude Models with Infosys Topaz

At the core of the collaboration is the integration of Anthropic’s Claude AI models, including Claude Code, with Infosys’ Topaz AI platform. This combination is designed to help enterprises automate complex workflows while maintaining governance, transparency, and compliance — especially critical in regulated industries.

The integration aims to:

• Automate multi-step enterprise processes
• Accelerate software development cycles
• Ensure AI adoption with built-in governance controls
• Enhance operational efficiency without compromising compliance standards

Focus on Agentic AI Systems

A key highlight of the partnership is the development of agentic AI systems. Unlike traditional AI models that respond to prompts, agentic AI can independently execute multi-step tasks across workflows.

These systems can handle processes such as:

• Processing insurance claims
• Generating, testing, and debugging code
• Conducting compliance reviews
• Managing risk assessments

Using tools like the Claude Agent SDK, enterprises will be able to deploy AI agents capable of managing long-running and complex tasks efficiently.

Expanding Across Financial Services and Manufacturing

Following the telecom rollout, the collaboration will expand into financial services, manufacturing, and engineering sectors.

Financial Services

In the financial domain, AI agents will support:

• Faster risk detection and assessment
• Automated compliance reporting
• Personalized customer engagement based on historical and market data

Manufacturing and Engineering

For manufacturing and engineering companies, AI integration will accelerate product design and simulation processes. Engineers will be able to test multiple iterations quickly, significantly reducing research and development timelines.

Software Development

In software development, teams will leverage Claude Code to write, test, and debug programs more efficiently, enabling faster transitions from design to production.

Modernizing Legacy Systems and Reducing Costs

The collaboration also targets modernization of legacy IT systems. By combining Infosys Topaz with Claude models, enterprises can accelerate digital transformation initiatives while reducing infrastructure upgrade costs.

Infosys is already deploying Claude Code internally within its Exponential Engineering organization to build expertise and refine best practices before scaling solutions to clients globally.

Strategic Implications for Enterprises

This partnership reflects a broader industry trend toward enterprise-grade AI adoption that prioritizes scalability, governance, and domain expertise. By combining engineering scale with advanced AI capabilities, Infosys and Anthropic aim to help enterprises redesign operating models and unlock long-term value.

For investors and market participants, this collaboration signals Infosys’ continued push into high-value AI services — a segment expected to drive future revenue growth and margin expansion in the global IT services industry.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Mutual Funds Sell Rs 4,100 Crore in February, First Net Selling Since April 2023

Mutual Funds Turn Net Sellers in February, Offload Rs 4,100 Crore in Equities After 3-Year Buying Streak

In a notable shift in market activity, mutual funds (MFs) have emerged as net sellers in Indian equities for the first time in nearly three years. So far in February, domestic funds have sold shares worth approximately Rs 4,100 crore, marking a break from their prolonged buying trend.

This is the first instance of net selling since April 2023, when mutual funds had offloaded equities worth over Rs 4,532 crore. Prior to that, they had remained net buyers for 34 consecutive months, consistently supporting the domestic equity market.

How Significant Is the Rs 4,100 Crore Selling?

While the headline number appears substantial, industry experts suggest the scale of selling needs to be viewed in context. The mutual fund industry currently manages assets worth nearly Rs 40 lakh crore. Against this backdrop, a net sale of Rs 4,100 crore represents a relatively small fraction of overall assets.

For perspective:

• In January 2026, MFs had purchased equities worth Rs 42,355 crore.
• During 2025, they invested around Rs 4.93 lakh crore in Indian equities.
• February’s selling has occurred in six out of seven trading sessions so far.

This indicates that the current selling phase is modest compared to the scale of previous inflows.

Portfolio Churn, Not Redemption Pressure

Market participants believe that the selling does not signal panic or heavy redemption pressure. Instead, it appears to be driven largely by portfolio rebalancing and profit booking.

Fund managers are reportedly trimming exposure in certain underperforming stocks and reallocating capital toward stronger, high-quality names—particularly in the large-cap segment. Some funds are also adjusting their portfolios after accumulating stocks during earlier phases when foreign institutional investors (FIIs) were selling aggressively.

Importantly, systematic investment plan (SIP) inflows remain steady, suggesting that retail participation continues to provide underlying support to domestic funds.

Impact of Index Rebalancing and Global Factors

Another contributing factor could be index rebalancing. January 31 is a key review date for major NSE indices, and global index providers also announced changes in early February. Such rejigs often trigger buying and selling activity among funds tracking or benchmarking against these indices.

Additionally, evolving macroeconomic and geopolitical developments are influencing capital flows. Key factors include:

• Progress and revisions in the India–US trade agreement, particularly related to agricultural goods.
• Ongoing geopolitical uncertainties.
• Expectations of further monetary policy easing.

Amid these dynamics, investors have shown increased interest in alternative asset classes such as gold and silver ETFs, bond funds, and hybrid funds.

Broader Market Weakness Adds Context

The shift in fund flows is occurring alongside broader market consolidation. The Nifty 500 index is currently down around 3.4% from its 52-week high. More strikingly, nearly 50% of stocks in the index are trading over 20% below their respective 52-week peaks.

This divergence indicates selective weakness beneath the surface, even as headline indices appear relatively resilient.

Foreign investor flows have been intermittent, and sustained inflows may depend on:

• Relative valuation comfort.
• Currency stability.
• Global risk appetite.

The Indian rupee continues to hover near its recent lows despite policy measures, which could also influence foreign capital allocation decisions.

What Should Retail Investors Watch?

For retail investors tracking stock market news, the key indicator to monitor is whether equity fund inflows remain stable. If domestic inflows continue and SIP contributions stay robust, occasional portfolio churn is unlikely to materially impact market stability.

However, sustained equity outflows combined with continued net selling would signal a more structural shift in sentiment.

At present, the data suggests strategic reallocation rather than structural weakness.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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RBI Tightens Broker Funding Norms from April 2026: Impact on Stock Brokers

RBI Tightens Broker Funding Norms from April 2026: Impact on Stock Brokers and Capital Markets

New Regulatory Framework to Reshape Broker Funding

The Reserve Bank of India (RBI) has introduced sweeping amendments to funding and collateral norms that will come into effect from April 1, 2026. The revised framework significantly tightens rules governing broker financing, bank guarantees, and capital market exposure limits.

The move is aimed at strengthening systemic stability and curbing excessive leverage within the capital markets ecosystem. However, it may also increase operational costs and capital requirements for stock brokers.

Shift to 100% Secured Funding

One of the most notable changes is the requirement for fully secured funding. Going forward, brokers can only avail funding that is backed entirely by tangible collateral.

Previously, banks could structure a ₹100 bank guarantee with:

• ₹50 backed by fixed deposits, and
• ₹50 supported by unsecured instruments such as promoter or corporate guarantees.

Under the new norms, this flexibility has been eliminated. Promoter guarantees alone will no longer qualify as sufficient backing. This shift is expected to increase capital blockage and reduce leverage within brokerage operations.

Stricter Bank Guarantee and Collateral Rules

The amendment also tightens conditions for bank guarantees issued in favour of stock exchanges or clearing corporations.

Key Changes Include:

• A minimum 50% collateral requirement for bank guarantees.
• At least 25% of the collateral must be in cash.
• Equity shares used as collateral will attract a minimum 40% haircut.

This means that the valuation of pledged shares will be significantly discounted, reducing the effective borrowing power of brokers. As a result, bank guarantee costs are likely to rise.

Restrictions on Proprietary Trading Funding

The RBI has also imposed tighter restrictions on proprietary trading activities.

Banks will no longer be allowed to fund proprietary trading, except in limited cases such as:

• Market-making activities
• Certain debt warehousing functions

In addition, all such exposures will now be classified as capital market exposure. This classification means that banks’ overall capital market exposure limits will apply, potentially curbing their appetite for lending to brokers.

Continuous Collateral Monitoring and Margin Calls

The new framework introduces stricter monitoring requirements. Brokers must maintain collateral cover on a continuous basis.

Facility agreements must now explicitly include:

• Provisions for margin calls in case of collateral shortfall
• Ongoing monitoring of asset cover

This reduces flexibility for brokers during periods of market volatility and may increase short-term liquidity pressure.

What This Means for Stock Brokers

Overall, the amendment is expected to:

• Reduce system-wide leverage
• Increase capital requirements for brokers
• Raise bank guarantee costs
• Limit reliance on unsecured promoter guarantees

For well-capitalized brokerage firms, the transition may be manageable. However, smaller brokers with thinner capital buffers could face margin pressures.

For retail investors, the changes could result in a more resilient and transparent market structure. While short-term liquidity in certain segments may tighten, the long-term objective is to strengthen risk management and reduce systemic vulnerabilities.

With implementation scheduled for April 2026, brokers and financial institutions have a limited window to realign their funding structures and comply with the revised norms.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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KLA to Invest ₹3,600 Crore in Tamil Nadu for Global R&D Campus, 4,000 Jobs Planned

KLA to Invest ₹3,600 Crore in Tamil Nadu for Global R&D Campus, 4,000 Jobs Expected

In a significant boost to India’s semiconductor ambitions, US-based chip equipment major KLA has signed a memorandum of understanding (MoU) with the Tamil Nadu government to invest $400 million (approximately ₹3,600 crore) in Chennai. The investment will be directed toward setting up a state-of-the-art global research and development (R&D) and innovation campus.

The proposed facility marks a major milestone for Tamil Nadu’s growing semiconductor and electronics ecosystem and underscores India’s increasing importance in the global chip value chain.

12-Acre Global Innovation Hub in Chennai

The upcoming campus will be spread across 12 acres in Chennai and is expected to emerge as KLA’s flagship R&D center outside its global headquarters. Over time, the campus is planned to have a built-up capacity of up to 1.5 million square feet, making it one of the largest integrated semiconductor R&D facilities in the region.

According to state officials, once fully operational, the facility is expected to generate up to 4,000 high-skilled jobs. These roles will primarily cater to engineers, researchers, and technology professionals working in advanced semiconductor technologies.

Key Focus Areas of the Campus

The Chennai R&D center will focus on cutting-edge areas critical to the semiconductor ecosystem, including:

• High-performance computing (HPC)
• Process control engineering software
• AI-driven semiconductor innovation
• Advanced solutions for integrated circuits and chip packaging

This strategic focus aligns with the global semiconductor industry's shift toward automation, artificial intelligence integration, and precision process control.

Strengthening India’s Semiconductor Ecosystem

KLA is considered one of the leading players in semiconductor manufacturing design and R&D. The company develops advanced process control equipment and services that enable innovation in integrated circuits, packaging technologies, and printed circuit boards.

The decision to establish a major R&D campus in Chennai reflects growing investor confidence in India’s semiconductor policy framework and skilled talent pool. Tamil Nadu has been actively positioning itself as a semiconductor and electronics manufacturing hub through targeted industrial policies and infrastructure support.

For retail investors tracking India’s semiconductor push, this development is strategically important. While India is still in the early stages of chip fabrication capabilities, investments in design, research, and process engineering are critical building blocks for long-term industry competitiveness.

Employment and Economic Impact

The creation of up to 4,000 high-value technology jobs is expected to have a multiplier effect on the regional economy. Apart from direct employment, the campus could stimulate:

• Growth in ancillary technology services
• Increased demand for real estate and infrastructure
• Collaboration with local universities and research institutions
• Expansion of semiconductor-focused startups

With a potential built-up capacity of 1.5 million sq ft, the campus signals a long-term commitment rather than a short-term expansion strategy.

What This Means for Investors

India’s semiconductor narrative has been gaining traction over the past few years, supported by policy incentives and rising global demand for diversified supply chains. Large-scale investments such as this reinforce the country’s positioning as a strategic R&D destination.

For investors monitoring global semiconductor trends, KLA’s ₹3,600 crore commitment indicates:

• Confidence in India’s engineering talent pool
• Long-term R&D expansion plans in Asia
• Strengthening of India’s role in global semiconductor innovation

While the investment does not directly relate to chip fabrication, it strengthens the upstream ecosystem - particularly in process control and AI-driven semiconductor design — which are critical for advanced manufacturing capabilities worldwide.

As India aims to become a major player in electronics and semiconductor manufacturing, strategic R&D investments like this could play a pivotal role in accelerating technological self-reliance and export competitiveness.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Ola Electric narrows Q3 loss to Rs 487 crore

Ola Electric Q3 Results: Loss Narrows to Rs 487 Crore Despite 55% Revenue Decline

Ola Electric reported a narrower net loss for the December quarter (Q3FY26), even as revenue and vehicle deliveries witnessed a sharp year-on-year decline. The electric vehicle (EV) manufacturer is currently undergoing what it describes as a “structural reset,” focusing on long-term sustainability rather than short-term volume growth.

Key Financial Highlights

For the quarter ended December, the company posted a consolidated net loss of Rs 487 crore, improving from Rs 564 crore in the same period last fiscal year.

However, revenue from operations fell significantly by 55% YoY to Rs 470 crore, compared to the previous year’s corresponding quarter.

• Net Loss: Rs 487 crore (vs Rs 564 crore YoY)
• Revenue: Rs 470 crore (down 55% YoY)
• Adjusted EBITDA Loss: Rs 323 crore (vs Rs 494 crore YoY)
• Total Deliveries: 32,680 units (vs 84,029 units YoY)

The reduction in adjusted operating EBITDA loss to Rs 323 crore from Rs 494 crore last year reflects improved cost control and better operating leverage.

Automotive Segment Under Pressure

The automotive segment bore the brunt of the slowdown, with revenues plunging to Rs 467 crore from Rs 1,045 crore in the year-ago quarter. Meanwhile, the cell manufacturing business generated around Rs 9 crore in revenue during the quarter.

Deliveries dropped sharply to 32,680 units, compared to 84,029 units in the corresponding period last year. The company attributed the volume decline to strategic realignment and slower EV penetration growth in the market.

Strategic Reset and Operational Realignment

Management indicated that Q3FY26 marked a turning point, with the company prioritizing structural corrections over aggressive expansion. The retail footprint, cost base, and operating model were recalibrated to establish a sustainable business framework.

According to the company, this restructuring has resulted in:

• A structurally lower volume breakeven level
• Enhanced operating leverage
• Greater focus on long-term profitability

The management emphasized that the objective was to strengthen fundamentals rather than maximize short-term sales numbers.

Capex Phase Nears Completion

Ola Electric has invested approximately Rs 5,300 crore across manufacturing facilities, battery innovation, and research and development platforms. The company believes this scale of investment provides a structural competitive advantage in India’s EV ecosystem.

The heavy capital expenditure cycle is largely complete, with the final phase of its Gigafactory expected to be operational by March 2026. At present, the company’s manufacturing infrastructure supports:

• 1 million vehicles annually
• 6 GWh of cell capacity

Going forward, the focus will shift from capacity creation to revenue expansion. The company has outlined an ambitious medium-term revenue potential of Rs 15,000–20,000 crore over the next few years.

Addressing Service Challenges

The company acknowledged that gaps in service execution affected brand perception during the quarter. It clarified that these concerns were related to service infrastructure and operational execution rather than product quality.

An independent third-party survey reportedly showed 90% overall product satisfaction and strong repurchase intent, indicating sustained customer confidence in its offerings.

Outlook for Retail Investors

While the sharp revenue decline and delivery slowdown may weigh on short-term sentiment, the narrowing losses and improved operating metrics suggest progress in cost optimization. With capex largely behind it and capacity in place, the company’s next phase hinges on scaling revenues efficiently.

Investors will closely monitor demand recovery in the EV segment, execution on service improvements, and the company’s ability to convert installed capacity into sustained revenue growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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HUL Q3 Results FY26: PAT Falls 30% to Rs 2,118 Crore; Revenue Up 6%

HUL Q3 Results FY26: PAT Falls 30% to Rs 2,118 Crore; Revenue Grows 6%

FMCG major Hindustan Unilever Ltd (HUL) reported a mixed set of numbers for the third quarter of FY26, with profitability from continuing operations under pressure even as revenue growth remained steady.

The company posted a 30% year-on-year (YoY) decline in consolidated net profit from continuing operations at Rs 2,118 crore, compared to Rs 3,027 crore in the corresponding quarter last year.

However, overall profit for the quarter surged 121% YoY to Rs 6,603 crore, largely supported by one-time gains arising from portfolio transformation initiatives.

Revenue and Operating Performance

HUL’s revenue from continuing operations stood at Rs 16,441 crore, marking a 5.6% increase from Rs 15,556 crore in the same period last year. The growth was primarily volume-led, reflecting improving consumer demand across categories.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations rose 3% YoY to Rs 3,788 crore. However, the EBITDA margin declined by 70 basis points to 23.3%, indicating some cost pressures. (One basis point equals 0.01%).

For the quarter, the company reported:

• Underlying Sales Growth (USG): 5%
• Underlying Volume Growth (UVG): 4%

The performance suggests gradual improvement in consumption trends, driven mainly by higher volumes rather than pricing.

Segment-Wise Performance

Home Care

The Home Care segment strengthened its market leadership and delivered 3% USG, supported by mid-single-digit volume growth. Pricing actions taken earlier continued to weigh on overall pricing, creating a negative price impact.

Beauty & Wellbeing

This segment posted 6% USG with low-single-digit volume growth. Hair Care remained a key growth driver, clocking double-digit volume expansion. Premium brands such as Dove and TRESemmé contributed significantly to performance.

Personal Care

Personal Care recorded 6% growth, led by double-digit expansion in premium Skin Cleansing and Oral Care. Brands like Pears and Dove supported mid-single-digit growth in Skin Cleansing, while the Bodywash portfolio continued to gain market share.

Foods

The Foods portfolio delivered 6% USG, backed by high-single-digit volume growth. Tea volumes grew in mid-single digits, but revenue growth remained muted due to price reductions amid a deflationary commodity environment. Coffee maintained strong double-digit growth, supported by both pricing and volume expansion.

Management Commentary and Outlook

The company highlighted early signs of demand recovery, supported by stable macroeconomic conditions and favourable policy measures. Management expects FY27 to outperform FY26, driven by ongoing portfolio optimisation and channel transformation initiatives.

HUL is also focusing on strengthening emerging distribution channels, including quick commerce, while investing in premium and high-growth categories to enhance brand desirability.

Brokerage View and Stock Reaction

Following the Q3 results, a leading global brokerage maintained a Buy rating on the stock with a 12-month target price of Rs 2,800. The valuation is pegged at 55x Q5–Q8 EPS, broadly in line with the company’s five-year average price-to-earnings multiple.

Despite steady revenue growth, the stock reacted negatively to margin pressures and profit decline. Shares of HUL traded 3% lower at Rs 2,396 after the earnings announcement.

Key Takeaways for Investors

• Revenue growth remains stable at 5.6% YoY
• Volume-led growth indicates improving consumption trends
• Margins under pressure with 70 bps contraction
• One-off gains boosted overall reported profit
• Management optimistic about stronger FY27 performance

Retail investors should closely monitor margin trajectory, commodity price trends, and demand recovery momentum in the coming quarters to assess sustainable earnings growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Govt to sell 3% stake in BHEL at Rs 254 via OFS

Govt to Sell 3% Stake in BHEL via OFS at Rs 254 Floor Price; May Raise Up to Rs 4,422 Crore

Government Announces Stake Sale in BHEL

The Government of India has announced plans to divest up to 3% stake in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS). The floor price for the issue has been fixed at Rs 254 per share, offering investors an opportunity to participate in the stake sale of the state-owned engineering major.

The base offer comprises more than 10.44 crore shares, representing 3% of the company’s total equity capital. Additionally, the government has retained an oversubscription option to sell another 6.96 crore shares, equivalent to 2% equity. If this option is fully exercised, the total divestment could rise to 17.41 crore shares, amounting to a 5% stake in BHEL.

Fundraising Potential and OFS Details

At the specified floor price of Rs 254 per share, the government is expected to raise approximately Rs 2,653 crore from the 3% stake sale. If the additional 2% oversubscription option is exercised, the total proceeds could increase to around Rs 4,422 crore.

The OFS will be conducted through a dedicated window on both the BSE and NSE platforms. The sale is scheduled to take place during regular trading hours, beginning at 9:15 am and closing at 3:30 pm on Wednesday.

This move aligns with the government’s broader divestment strategy aimed at improving public sector efficiency and raising capital for fiscal management.

BHEL Share Price Performance

On the day of the announcement, BHEL shares closed at Rs 275.90, marking a gain of Rs 1.25 or 0.46% over the previous closing price. The stock traded comfortably above the OFS floor price, which may attract investor interest given the discount implied by the offer price.

Market participants will closely monitor subscription levels, especially from institutional investors, as the pricing and demand dynamics could influence short-term stock movement.

Strong Q3 FY26 Financial Performance

The stake sale announcement follows a robust December quarter performance by BHEL, reflecting a significant operational turnaround.

Net Profit Surges Over 200%

BHEL reported a net profit of Rs 382 crore for the quarter ended December 2025, compared to Rs 125 crore in the same period last year. This represents a sharp 206% year-on-year increase, driven by improved execution and operating leverage.

Revenue Growth and Operational Highlights

Revenue from operations rose 16% year-on-year to Rs 8,473 crore, up from Rs 7,277 crore in the corresponding quarter of the previous year. Total income, including other income, stood at Rs 8,700 crore, compared with Rs 7,393 crore a year ago.

The company benefited from:

• Improved project execution timelines
• A stronger and expanding order pipeline
• Better cost management and operating efficiency

Cost Structure and Margins

Total expenses for the quarter increased to Rs 8,188 crore, compared to Rs 7,224 crore in the year-ago period. Key cost components included:

• Cost of materials and services: Rs 6,059 crore
• Employee benefit expenses: Rs 1,531 crore

Notably, finance costs declined sequentially to Rs 182 crore from Rs 195 crore in the September quarter, providing additional support to profitability.

What This Means for Investors

The government’s decision to divest stake comes at a time when BHEL is demonstrating improved financial performance. For retail investors, the OFS presents an opportunity to buy shares at a predefined floor price, potentially at a discount to prevailing market levels.

However, investors should evaluate:

• Short-term price volatility post-OFS
• Long-term growth visibility in the capital goods sector
• Execution strength and order inflows in upcoming quarters

With a stronger earnings trajectory and continued policy support for infrastructure and energy projects, BHEL remains a key PSU stock to watch in the current market environment.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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