Shares of Maharatna PSU Bharat Heavy Electricals Limited (BHEL) rose as much as 2 per cent to ₹250 apiece on Thursday, October 30, on the NSE after the company reported strong financial results for the September quarter.
BHEL share price opened at ₹249.41 apiece in the early morning session on Thursday, as compared to the previous close of ₹245.39. BHEL shares have been witnessing a strong rally in the near-term as they have surged over 7 per cent in the past five sessions and 5.38 per cent in a month.
The PSU stock has rewarded its long-term investors with multibagger returns of 797 per cent in five years.
BHEL Q2 results 2025
The Maharatna PSU company BHEL reported a consolidated net profit of ₹374.89 crore for Q2 FY26, representing a steep 253 per cent year-on-year (YoY) increase from ₹106.15 crore recorded in the corresponding quarter last year.
Consolidated revenue from operations increased by 14 per cent year-on-year to ₹7,512 crore in the July–September quarter, up from ₹6,584 crore in Q2 FY25. The company delivered robust growth across both of its major business segments.
In the power segment, revenue rose 12.9 per cent year-on-year to ₹5,675.64 crore, compared to ₹5,028.28 crore in the September 2024 quarter. On a sequential basis, this marks a 45 per cent jump from ₹3,898.86 crore recorded in the June 2025 quarter.
Total expenses increased to ₹7,202 crore in the quarter, up from ₹6,571 crore in the corresponding period last year. Meanwhile, total income grew 15 per cent year-on-year to ₹7,686 crore from ₹6,695 crore.
The company’s EBITDA rose sharply to ₹580 crore during the quarter under review, compared with ₹274 crore in Q2 FY25. As a result, the EBITDA margin improved to 7.7 per cent from 4.16 per cent a year earlier.
Should you buy or sell BHEL shares?
Brokerage firm ICICI Securities maintained a ‘buy’ rating on BHEL stock, with a target price of ₹324 apiece. “Given the revived interest in thermal power plants, with India’s target of 80GW by 2032, the order outlook remains strong for BHEL. ~30GW of coal-based plants are in the planning stages. We expect BHEL to report INR 700bn of OI in FY26E (OI in H1 was at INR 353bn). We maintain BUY on BHEL with an unchanged TP of INR 324, valuing the stock at 35x FY27E EPS,” the brokerage firm said.
Brokerage firm Nuvama Institutional Equities also retained a ‘buy’ rating.
“Retain ‘BUY’ as we expect FY26 to be a clean-up year with legacy low-margin projects nearing completion, enabling FY27 margin rebound as new orders gain pace and operating leverage kicks in. We are cutting FY26E/28E EPS by 22%/16%, reflecting lower FY26E OPM of 6.9% (earlier 8.4%) and baking in Eighth Pay Panel impact in FY28E, yielding a TP of INR353 (from INR335), roll over to 25x (unchanged) FY28E EPS,” Nuvama said.
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