BHEL hits 52-week high, stock soars 18% in 10 days; Should you buy or hold?

BHEL bags ₹6,650 crore EPC contract from NTPC; brokerages maintain 'Buy' rating on BHEL in anticipation of future order flows, expect stock to rally past ₹300-mark.

Share price of Bharat Heavy Electricals (BHEL) today

 

Shares of Bharat Heavy Electricals (BHEL) hit a 52-week high of ₹273.20, gaining 4 per cent on the BSE in Monday’s intra-day trade. The stock price of the public sector undertaking (PSU) continued its upward march, surging 18 per cent in the past 10 trading days. 

 

BHEL’s market price surpassed its previous high of ₹272 touched on June 30, 2025. It had hit a record high of ₹390 on November 7, 2027.

 

BHEL receives ₹6,650 crore EPC contract from NTPC

 

BHEL said it received a ₹6,650 crore engineering, procurement, and construction (EPC) contract from NTPC for setting up the 1x800 MW Darlipali Supercritical Thermal Power Project (Stage-II) in Sundargarh district, Odisha. The project will be executed within 48 months under an international competitive bidding process.

 

 

Strong Q2 results, healthy order book position

 

BHEL reported strong Q2FY26 results, turning profitable. The company’s revenue grew 14 per cent year-on-year (YoY) to ₹7,512 crore. With a drop in Employee benefits and other expenses by 260 and 310 bps YoY, EBITDA more-than-doubled to ₹580 crore vs ₹275 crore last year. With operational performance and rise in other income, profit after tax grew 3.5 times YoY to ₹368 crore vs ₹97 crore in last year. 

 

BHEL received orders worth ₹35,375 crore during the quarter, taking the total order book to ₹2.2 trillion, 80 per cent or ₹1.75 trillion of order book from Power segment and rest is Industry segment including exports.

 

The company received its maiden order for the Kavach system fromIndian Railways for design, development and installation of KAVACH equipment, in locomotives and at trackside locations on a 36 km section of the SW Railways.

 

Brokerages view on BHEL

 

The ₹6,650 crore EPC order from NTPC for the 800 MW Darlipali project translates to a project cost of around ₹8.3 crore per MW. The win enhances BHEL’s visibility in the thermal segment, supporting capacity utilization and order inflows amid a rebound in large-scale conventional power projects, said analysts at ICICI Securities.

 

BHEL has secured a healthy orderbook (book to bill ~8), the company needs to ramp up execution to charter robust growth over the medium term. The drop in other expenses and employee cost rationalisation is a positive, implying legacy orders are a concern of the past, dismaying concerns of continued significant other expenses to drive losses during the year.

 

Good accretion of orders and strong ordering pipeline will keep order inflows strong coupled with strong pick in execution from FY26E onwards. This will also help margins and return ratios to improve meaningfully over the next 2-3 years, according to the brokerage firm. Hence, it rates the stock buy with fair value of ₹310 (30x FY27E EPS).

 

Out of 34GW of projects awarded in the new cycle, 21.6GW have just started and the remaining 12.8GW have not even started. Hence, analysts at JM Financial Institutional Securities believe execution of current orders will further pick up Q3FY26 onwards and revenue/ EPS might reach ₹48,900 crore/ ₹12.7 in FY28, which has upside risk if new ordering accelerates and/or target increases further.

 

The first 2x660MW NTPC Talcher EPC project in the new cycle was awarded to BHEL in September 2022. Subsequently, the government set the target of adding 80GW of thermal power capacity by 2030, which has now been enhanced to 97GW by FY34. Since then, 45GW of the projects have been ordered. Another 32GW of the projects are tendered or awaiting equipment ordering. The brokerage firm expects BHEL to book orders worth ₹60,000-70,000 crore during FY26 and report total order book of at least ₹2.25 trillion on March 2026, the brokerage firm said, adding it continues to maintain BUY on the stock with a revised target price of ₹320 (30x Sep’27 EPS).