Bharat Heavy Electricals Limited (BHEL) share price movement

Share price of Bharat Heavy Electricals Limited (BHEL) hit a new high of ₹463.10, rallying 5 per cent on the BSE in Wednesday’s intraday deals after the company reported a solid September 2026 quarter (Q2FY27) earnings. The standalone net profit of the public sector undertaking (PSU) company jumped 120 per cent to ₹809.62 crore on year-on-year (YoY) basis.

The stock price of BHEL surpassed its previous high of ₹455.90 touched on October 7, 2026. Thus far in the calendar year 2026, the stock outperformed the market by soaring 61 per cent compared to a 14.6 per cent decline in the BSE Sensex. Further, in the past year, BHEL’s market price doubled as against a 11 per cent fall in the benchmark index.

At 02:32 PM, BHEL traded 4 per cent higher at ₹457.85 compared to a 0.29 per cent decline in the BSE Sensex. The counter saw huge trading volume with a combined 31.15 million shares changing hands on the NSE and BSE.

BHEL – Q2 results

Revenue from operations rose 23.8 per cent YoY to ₹9,300 crore in the second quarter of 2026-27, from ₹7,512 crore. Earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded 330 bps YoY to 11.02 per cent from 7.73 per cent.

Meanwhile, for the first six months (April to September) of the financial year 2026-27, BHEL reported a net profit of ₹1,192 crore, against a net loss of ₹87 crore. The company’s revenue from operations grew 30.76 per cent YoY to ₹16,998 crore from ₹12,999 crore during the period.

BHEL approves capital investment of ₹500 crore

The board of directors of BHEL in its meeting held on October 14, 2026 approved the capital investment proposal for additional facilities for manufacturing of Thermal & Nuclear Sets at HEEP-Haridwar Unit at an estimated cost of approximately ₹500 crore.

BHEL is one of the largest engineering and manufacturing companies of its kind in India engaged in the design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of the economy. It operates largely in India in the Power (75% revenue mix) and Industrial (25%) sectors.

ICICI Securities view on BHEL

BHEL's turnaround is gaining momentum due to higher execution and improved project profitability. Analysts at ICICI Securities believe margins are at the beginning of a structural upcycle, driven by operating leverage as execution accelerates on the ₹2.6 trillion crore order book, a richer mix of higher-margin businesses such as spares & services, nuclear, defence, transmission and exports, improved project execution and milestone billing leading to lower cost overruns, better fixed-cost absorption with higher manufacturing utilisation, and stronger cash generation reducing working capital costs. 

The brokerage firm in its Q1 result update, expects BHEL to achieve order inflows of over ₹70,000 crore in FY27, supported by a robust pipeline across thermal power, nuclear, transmission, defence and industrial businesses, and expects the EBITDA margin to expand from 6.9 per cent in FY26 to 11.5 per cent by FY28E.

Analysts expect the revenues and profit after tax to grow at a compound annual growth rate (CAGR) of 30.5 per cent and 90 per cent over FY26-FY28E. This will also improve ROCE from mid-single digit to 16.7 per cent ROCE in FY28E. Hence, the brokerage firm rates the stock a buy with a fair value of ₹575 (35x FY28E EPS). Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.