BHEL zooms 13%, stock hits all-time high after 18 years; here's why

In the past one month, the market price of BHEL has appreciated by 62 per cent, as compared to 5 per cent rise in the BSE Sensex.

Bharat Heavy Electricals Limited (BHEL) share price

 

Shares of Bharat Heavy Electricals Limited (BHEL) hit a new high of ₹398.95 after a gap of over 18 years, as they rallied 13 per cent on the BSE in Monday’s intra-day trade on strong March quarter earnings. 

The stock price of the public sector undertaking (PSU) company surpassed its previous high of ₹390 touched on November 7, 2007. In the past one month, BHEL's market price has appreciated by 62 per cent, as compared to 5 per cent rise in the BSE Sensex. 

At 12:18 PM; BHEL share price was quoting 11 per cent at ₹390.45, as against 0.54 per cent gain in the benchmark index. The average trading volumes at the counter doubled with a combined 61.44 million equity shares changing hands on the NSE and BSE.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Why has BHEL Stock outperformed the market?

 

In the January to March 2026 quarter (Q4FY26) BHEL reported strong earnings; profit after tax (PAT) more than doubled to  ₹1,282.68 crore, on healthy operational performance. The company had posted a PAT of ₹504.05 crore in Q4FY25.  

The company’s revenue from operations grew by 36.9 per cent year-on-year to ₹12,310 crore from ₹8,993 crore in the previous year's quarter. 

BHEL is India’s foremost engineering and manufacturing enterprise in the power and infrastructure sector. The company secured total order inflows of around ₹75,000 crore during the financial year 2025-26 (FY26). With this, BHEL’s total outstanding order book at the end of FY26 stands at around ₹2.4 trillion, the company said. 

In the power sector, BHEL continued to maintain a strong market position with significant order wins of around ₹59,000 crore during the year. The industrial segment recorded fresh orders of around ₹16,000 crore across diverse sectors such as transportation, transmission, defence, process industries, and industrial equipment, reflecting the company’s broad-based presence. 

On the execution front, BHEL commissioned/synchronised around 8.9 GW of power capacity, demonstrating its continued focus on project delivery and operational efficiency. 

With healthy revenue growth, a strong order book, and a sustained execution pipeline, BHEL said the company entered FY2026–27 with solid momentum. Further, the company said it remains committed to delivering high-impact infrastructure, driving indigenisation, and enhancing stakeholder value.  READ | Dr Lal PathLabs hits 20% upper band on strong Q4; brokerages stay positive

FIIs raised holding in BHEL

 

According to March 2026 quarter shareholding pattern filed by BHEL, foreign institutional investors (FIIs) holding in the company increased to 7.2 per cent from 6.3 per cent at the end of December 2025 quarter. Domestic institutional investors (DIIs) stake in the company rose to 23.98 per cent from 19.7 per cent in previous quarter. However, retail individual investors holding in BHEL declined to 9.3 per cent from 9.54 per cent.

Brokerage sees more upside on BHEL

Analysts at JM Financial Institutional Securities believe BHEL’s order book has not yet peaked given 18/14GW of pipeline along with improving non-thermal visibility. With the commissioning of 8.9/10GW of legacy projects, pickup in both execution and margin is certain. Moreover, analysts reckon the permission to import from China, change in product mix in non-thermal orders (HVDC, naval guns, nuclear), indigenization of supercritical and op-lev would propel margins to mid-teens over next two–three years. However, the stock today achieved the brokerage target price of ₹393 per share. 

Easing of working capital stress is also likely considering large customer advances and commissioning of legacy projects. The stock is trading at 27x FY28E EPS (consensus) at Q4FY26E EBITDA margin of 11 per cent (consensus). The brokerage firm anticipates a beat on margins, making it worthy of an earnings upgrade and re-rating as revenues compound 20 per cent over FY25–28E while EBITDA margin expands from 4.4 per cent to 11.2 per cent in base case and RoE improves to at least 15 per cent by FY28E (versus 25–30 per cent over 2008–12 cycle).  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.