Bharat Heavy Electricals Limited (BHEL) shares surged 6.03 per cent to ₹260.18 in Thursday afternoon trading, with substantial volume of 64.8 million shares exchanged, equating to ₹1,646 crore, following the company’s improved quarterly performance. The stock opened at ₹254 and peaked at ₹260.75 during the day, building on gains from Wednesday’s earnings report.
Analysts, however, presented differing perspectives on the public sector unit’s performance. Morgan Stanley retained an ‘Overweight’ rating with a target price of ₹258, citing a revenue increase of 14 per cent, surpassing its estimate of 9 per cent. Additionally, BHEL’s EBITDA reached ₹5.8 billion, exceeding the firm’s estimate of ₹1 billion. In contrast, CLSA adopted a more conservative view, assigning an ‘Under-Perform’ rating with a lower target of ₹198. They noted that the operational improvements were largely attributed to non-cash foreign exchange mark-to-market gains, rather than a reflection of robust business fundamentals. CLSA highlighted BHEL’s high valuation at 43 times FY26 consensus earnings, all while the company reported a net loss in the first half of the fiscal year.
For the second quarter of FY2025-26, BHEL reported a standalone net profit of ₹368 crore, a significant leap from ₹97 crore in the same quarter last year, on revenues of ₹7,512 crore compared to ₹6,584 crore previously. The power segment saw revenue growth of 13 per cent with an EBIT margin of 10.5 per cent, while the industry segment experienced an 18 per cent increase with a 15.3 per cent margin. BHEL’s order book currently stands at ₹2.19 lakh crore.
Published on October 30, 2025.
