BHEL and SAIL Maharatna Tag: The two big government companies of the country, BHEL (Bharat Heavy Electricals Ltd) and SAIL (Steel Authority of India Ltd) are in danger of losing their ‘Maharatna’ status. The central government has given one year’s notice to both the companies in view of their poor performance.

Where is the mistake happening?

In the review policy meeting chaired by Cabinet Secretary Dr TV Somanathan, it came to light that both the companies were not able to meet the most important financial criteria of Maharatna.

For any company to remain a Maharatna, the average annual net profit (Profit After Tax-PAT) of the last three years should be more than Rs 5000 crore. On the contrary, out of the total 14 Maharatna companies in the country, BHEL and SAIL are the only companies which are failing to achieve this three-year profit target.

What will happen if ‘Maharatna’ status is snatched away?

If these companies do not improve their profits within a year, they will be downgraded to ‘Navratna’ category. This will reduce the financial autonomy of their boards.

Currently, as Maharatna, both the companies can directly take investment or business decisions up to Rs 5000 crore without government approval. As soon as they become Navratna, their investment limit will be reduced, which will be only Rs 1000 crore. This will affect their big projects.

What is the stance of the government?

This is the first case when a government PSU has been given such a strict warning to withdraw Maharatna status. The Ministry of Heavy Industries and Ministry of Steel have been asked to present a detailed revival plan to improve the performance of these two companies. In this sequence, the government has also tightened the rules of corporate governance. Now the numbers of these companies will also be deducted on rules like not making timely payment to CSR funds and MSME vendors.

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Sail share jumps after q4 results: After the fourth quarter result of the Steel Authority of India, its stock jumped 2.2 percent on NSE to Rs 131.8 on Thursday. While the stock of the cell has risen 23 percent during the last three months, it is 21 percent below as compared to last year. Currently, the company’s market capitalization is Rs 53,195 crore.

In the fourth quarter of FY 2024-25, there has been a adjusted profit of 11 percent on an annual basis and it increased to Rs 1251 crore. During this time, the company’s profit was Rs 1,125 crore during this period. During the fourth quarter of the company from the operations, the revival increased by 5 percent more than last year and it increased to Rs 27,959 crore. Last year it was Rs 29,316 crore.

Sale’s shares after the result

Similarly, after the tax of the company, the profit has increased by 781 percent against 142 crores in the last quarter. While the revival has increased by 20 percent in the October-December quarter against 24,490 crores.

For the financial year 2024-25, an equity share of Rs 1.60 has also been announced by the company’s Board of Directors. This divideant will be given within 30 days of approval from the shareholders during the annual general meeting of the company.

The company spent a total of Rs 28,021 crore during the fourth quarter this year. These expenses were spent Rs 24,560 crore during the last quarter i.e. during the finance 2025 during October to December. Whereas the company was Rs 26,474 crore during the fourth quarter of the last financial year a year ago.

After the tax during the entire financial year, the company’s profit was Rs 2,372 crore, which was less than 3,067 of FY 25. The reason for this reduction in profits is the increased company’s expenses in the quarter ended on 31 March 2025.

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