BHEL surges 35% in 8 days, hits 21-month high; brokerages remain upbeat

The order book expansion to ₹2.4 trillion provides strong revenue visibility, with a book-to-bill of ~7.4x, ensuring multi-year execution pipeline and reducing earnings volatility, said analysts.

Bharat Heavy Electricals (BHEL) share price 

 

Shares of Bharat Heavy Electricals (BHEL) hit a 21-month high of ₹330.65; surging 4.4 per cent on the BSE in Monday’s intra-day after the company reported strong performance for the financial year 2025-26 (FY26). 

 

The stock price of India’s foremost engineering and manufacturing enterprise in the power and infrastructure sector was quoting higher for the 9th straight trading day, soaring 35 per cent during the period. On Thursday, April 16, the stock surpassed its previous high of ₹305.85 touched on January 7, 2026.

 

Currently, BHEL quotes at its highest level since July 2024, when it hit high of ₹335.40 during the month. The stock had hit an all-time high of ₹390 touched on November 7, 2007.

 

 

BHEL reports strong revenue growth in FY26

 

BHEL reported strong FY26 performance, with turnover rising 18 per cent year-on-year (YoY) to ₹32,350 crore. The company said it secured ₹75,000 crore orders, driven largely by the power segment (₹59,000 crore), while the industrial segment contributed ₹16,000 crore across diversified sectors. BHEL’s order book stands at ₹2.4 trillion, and it commissioned ~8.9 GW of power capacity during the year, reflecting healthy execution momentum.

 

With healthy revenue growth, a strong order book, and a sustained execution pipeline, BHEL enters FY2026–27 with solid momentum. The company remains committed to delivering high-impact infrastructure, driving indigenisation, and enhancing stakeholder value, the company said.   CHECK Stock Market LIVE Updates

Brokerages view on BHEL

 

The FY26 performance clearly marks a shift from an order-led cycle to an execution-led growth phase. Notably, implied Q4 revenue stands at ~₹10,878 crore (+21 per cent YoY), highlighting strong execution acceleration in the peak quarter. The order book expansion to ₹2.4 trillion (+22 per cent YoY) provides strong revenue visibility, with a book-to-bill of ~7.4x, ensuring multi-year execution pipeline (4–5 years) and reducing earnings volatility, according to ICICI Securities said in a note. 

 

Additionally, the 43 per cent growth in industrial segment orders (~₹16,000 crore) reflects gradual diversification beyond thermal power into segments like defence, transmission, and industrial equipment—supportive of margin stability and long-term growth, the brokerage firm said. BHEL is among top fundamental picks on the ICICI Securities’ list, with target price of ₹343 per share.

 

The order inflow momentum is expected to sustain as the Central Electricity Authority (CEA) has outlined a thermal capacity addition target of ~97 GW by FY35, with incremental demand from replacement of ~37 GW of ageing thermal plants that will cross 35 years of life by FY32. Good accretion of orders and strong ordering pipeline will keep order inflows strong coupled with strong pick in execution from FY27E onwards. This will also help margins and return ratios to improve meaningfully over the next 2-3 years, analysts said.

 

Analysts at JM Financial Institutional Securities maintain BUY with a target price of ₹345, 30x March 2028E EPS.

 

The government has planned a minimum 97GW of thermal capacity addition by FY32 (18GW commissioned, 39GW under construction, 23GW recently awarded, 24GW under planning)—and there is high probability of that number being revised upwards—indicating continued momentum of new projects ordering.

 

BHEL is set to begin FY27 with an order book of at least ₹2.5 trillion, and growing, as 24GW of new projects are under planning and may be awarded during FY27–29. To expedite execution, the government has allowed it to import 21 critical input materials (now being imported from western nations) including CRGO coils, bushings, forgings, seamless pipes and others from China, which is also margin accretive, the brokerage firm said in the company update.  Meanwhile, transformer manufacturers in India are experiencing incremental opportunities due to the increasing share of high-voltage direct current (HVDC) transmission projects. These projects require high value converter transformers and reactors, with only a limited number of qualified suppliers. Companies including BHEL are the key beneficiaries. According to the National Electricity Plan (NEP), out of a prospective pipeline of 32.3 GW, about 14.5 GW worth of HVDC contracts have already been tendered and awarded, Motilal Oswal Financial Services said in capital goods sector report.  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.