BHEL falls 4% as Q3 revenue misses estimates; analysts positive on outlook
JM Financial said BHEL's margin improvement is likely in the coming quarters as the execution mix begins to skew towards newer projects
 "BHEL falls 4% as Q3 revenue misses estimates; analysts positive on outlook")
Shares of Bharat Heavy Electricals Ltd. (BHEL) fell over 4 per cent on Tuesday, even as analysts remained positive on the stock after the company reported its third quarter of the current financial year (Q3-FY26)
The heavy electrical equipment maker's stock fell as much as 4.66 per cent during the day to ₹250.8 per share, the biggest intraday fall since January 8 this year. The stock pared losses to trade 4 per cent lower at ₹251.5 apiece, compared to a 0.49 per cent decline in Nifty 50 as of 09:45 AM.
Shares of the company fell for the third straight session and currently trade at 2.3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 13 per cent this year, compared to a 2.3 per cent decline in the benchmark Nifty 50. BHEL has a total market capitalisation of ₹87,678.36 crore.
BHEL Q3 results
Bharat Heavy Electricals reported a jump in profitability for Q3FY26, with consolidated net profit surging 189.82 per cent year on year (Y-o-Y) to ₹390.40 crore, compared with ₹134.70 crore in the same quarter last year.
Revenue from operations rose 16.43 per cent Y-o-Y to ₹8,473.10 crore for the quarter ended December 31, 2025. Total expenses increased 13.34 per cent Y-o-Y to ₹8,188.26 crore during the quarter. The cost of materials and services climbed 23.77 per cent to ₹6,058.80 crore, while employee benefits expense rose 3.28 per cent year on year to ₹1,530.71 crore.
On a segmental basis, revenue from the power business increased 13.13 per cent Y-o-Y to ₹6,322.36 crore. Revenue from the industry segment grew at a faster pace of 27.36 per cent to ₹2,150.74 crore during the quarter. ALSO READ | Q3 Results Today
Analysts on BHEL earnings
The company's revenue for Q3 missed the estimates set by JM Financial and Antique Stock Broking.
JM Financial said margin improvement is likely in the coming quarters as the execution mix begins to skew towards newer projects. The brokerage said it remains positive on the company’s long-term prospects, citing a limited risk from imports from China and a long growth runway for thermal power. JM Financial said it continues to maintain a Buy rating on the stock, with a revised target price of ₹355.
Antique Stock Broking said it expects BHEL's business performance to improve further in FY27 as recently secured higher-margin orders move into the execution phase, leading to a meaningful improvement in profitability.
The brokerage expects the company to continue witnessing elevated order inflows of more than ₹80,000 crore over the next two years, driven by demand from both the industry (non-power) and power segments. Antique said it has broadly retained its FY27 and FY28 estimates, while cutting its FY26 earnings estimate by 18 per cent to factor in weaker-than-expected execution during the first nine months of FY26.
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