BHEL target price: Stock falls 6% even as brokerage ups estimates; should you buy, sell or hold?
BHEL shares fall over 6% as brokerages remain divided after Q2FY27 results. Check BHEL target prices, ratings, earnings performance and key risks.
- Oct 15, 2026,
- Updated Oct 15, 2026 3:18 PM IST
BHEL target price: Shares of Bharat Heavy Electricals Ltd (BHEL) tumbled more than 6 per cent during Thursday's trading session, giving up gains made in previous sessions. Brokerages remain divided on the stock's outlook despite improved execution and a recovery in margins in Q2FY27.
While operational performance, a strong order book, better working capital management and diversification beyond thermal power support earnings growth, intensifying competition and concerns over peak thermal order inflows pose risks, analysts said following the Q2 results.
Some analysts believe the stock's valuation already factors in the recovery, citing moderation in order intake and potential pressure on future growth. Others remain positive, expecting sustained execution, margin expansion and fresh order wins to drive profitability. Timely order conversion and sustained execution momentum remain key monitorables.
BHEL Q2 results BHEL reported a 120 per cent year-on-year (YoY) jump in net profit to Rs 810 crore, while revenue increased 23.8 per cent YoY to Rs 9,300 crore in the September 2026 quarter. The company reported EBITDA of Rs 1,026 crore, up 76.6 per cent YoY, while its EBITDA margin expanded to 11 per cent from the year-ago period.
The company's order book stood at Rs 2.57 lakh crore as of September 30, 2026, marking a 17.27 per cent YoY increase. BHEL announced a Rs 500 crore capital investment proposal for additional thermal and nuclear manufacturing facilities at its HEEP unit in Haridwar. Revenue from both its power and industry segments also increased during the quarter.
BHEL share price BHEL shares fell as much as 6.2 per cent to Rs 434.70 on Thursday, taking the company's market capitalisation to around Rs 1.5 lakh crore. The stock had hit its 52-week high of Rs 463.60 on Wednesday, October 14, following its Q2 results. Until Wednesday's session, the stock had gained 102 per cent from its 52-week low of Rs 229.70, recorded on October 24, 2025.
BHEL target prices "We reiterate our 'underperform' rating on BHEL as the entry of Chinese suppliers, JSW Toshiba, L&T and Thermax into its core thermal equipment segment questions its market dominance. Its backlog appears to have peaked, while the stock is pricing in much more. Competition drove the first quarter-on-quarter decline in its backlog in three years, at 1 per cent," said CLSA.
CLSA acknowledged BHEL's strong operational performance in Q2FY27 and raised its target price to Rs 351 from Rs 306, citing higher earnings-per-share estimates and a valuation roll-forward. However, it believes the strong quarterly performance is already priced in and that the stock is expensive at 39 times its FY28 calendar-year price-to-earnings estimate, amid expectations of structurally peaking power orders.
BHEL reported a 12 per cent YoY beat on EBITDA, with margins improving 330 basis points YoY to 11 per cent. Industry-segment margins rose 420 basis points YoY to 19.5 per cent, while power-segment margins increased 250 basis points to 12.9 per cent, according to Jefferies. The brokerage raised its estimates to factor in the 595-basis-point improvement in gross margin in Q2FY27, while maintaining an 'underperform' rating and a target price of Rs 442.
Following improvements seen in FY26 and sustained in the first half of FY27, Axis Capital lowered its working-capital intensity assumptions, resulting in higher net interest income. It raised its FY28 and FY29 earnings-per-share estimates by 25 per cent and 23 per cent, respectively, and revised its discounted cash flow-based September 2027 target price to Rs 305. Its assumptions include 10 per cent compound annual growth in revenue over FY26–FY35 and 2 per cent terminal growth. Axis Capital maintained its 'sell' rating.
Improving execution, margin recovery and diversification beyond thermal power strengthen BHEL's medium-term growth outlook, although timely order conversion and sustained execution momentum remain key monitorables, said PL Capital. It maintained its 'reduce' rating and revised its target price to Rs 426, factoring in stronger execution.
Macquarie raised its estimates and upgraded the stock to 'neutral', with a target price of Rs 420, citing continued execution momentum and margin expansion. "The order backlog remained strong, rising 17 per cent YoY to Rs 2.58 lakh crore. Order intake was muted in Q2, down 82 per cent YoY, but was down only 13 per cent YoY in H1," it said.
ICICI Securities expects BHEL to record order inflows of Rs 60,000 crore in each of FY27 and FY28. The brokerage revised its FY27 and FY28 earnings-per-share estimates to Rs 8.8 and Rs 13.5, respectively, from Rs 7.3 and Rs 13, and introduced a FY29 estimate of Rs 15.7. It maintained its 'buy' rating and raised its target price to Rs 550 from Rs 520 as it rolled over its valuation to FY29.
BHEL has announced capital expenditure of Rs 500 crore and resumed hiring after nearly 15 years. Factoring in the improvement in execution and gross margins, JM Financial raised its EBITDA margin estimates for FY28 and FY29 to 13.2 per cent and 15 per cent, respectively. The brokerage maintained its 'buy' rating and raised its target price to Rs 535, citing a promising thermal order pipeline and the company's net cash position. It values the stock at 30 times its September 2028 estimated earnings per share.
BHEL target price: Shares of Bharat Heavy Electricals Ltd (BHEL) tumbled more than 6 per cent during Thursday's trading session, giving up gains made in previous sessions. Brokerages remain divided on the stock's outlook despite improved execution and a recovery in margins in Q2FY27.
While operational performance, a strong order book, better working capital management and diversification beyond thermal power support earnings growth, intensifying competition and concerns over peak thermal order inflows pose risks, analysts said following the Q2 results.
Some analysts believe the stock's valuation already factors in the recovery, citing moderation in order intake and potential pressure on future growth. Others remain positive, expecting sustained execution, margin expansion and fresh order wins to drive profitability. Timely order conversion and sustained execution momentum remain key monitorables.
BHEL Q2 results BHEL reported a 120 per cent year-on-year (YoY) jump in net profit to Rs 810 crore, while revenue increased 23.8 per cent YoY to Rs 9,300 crore in the September 2026 quarter. The company reported EBITDA of Rs 1,026 crore, up 76.6 per cent YoY, while its EBITDA margin expanded to 11 per cent from the year-ago period.
The company's order book stood at Rs 2.57 lakh crore as of September 30, 2026, marking a 17.27 per cent YoY increase. BHEL announced a Rs 500 crore capital investment proposal for additional thermal and nuclear manufacturing facilities at its HEEP unit in Haridwar. Revenue from both its power and industry segments also increased during the quarter.
BHEL share price BHEL shares fell as much as 6.2 per cent to Rs 434.70 on Thursday, taking the company's market capitalisation to around Rs 1.5 lakh crore. The stock had hit its 52-week high of Rs 463.60 on Wednesday, October 14, following its Q2 results. Until Wednesday's session, the stock had gained 102 per cent from its 52-week low of Rs 229.70, recorded on October 24, 2025.
BHEL target prices "We reiterate our 'underperform' rating on BHEL as the entry of Chinese suppliers, JSW Toshiba, L&T and Thermax into its core thermal equipment segment questions its market dominance. Its backlog appears to have peaked, while the stock is pricing in much more. Competition drove the first quarter-on-quarter decline in its backlog in three years, at 1 per cent," said CLSA.
CLSA acknowledged BHEL's strong operational performance in Q2FY27 and raised its target price to Rs 351 from Rs 306, citing higher earnings-per-share estimates and a valuation roll-forward. However, it believes the strong quarterly performance is already priced in and that the stock is expensive at 39 times its FY28 calendar-year price-to-earnings estimate, amid expectations of structurally peaking power orders.
BHEL reported a 12 per cent YoY beat on EBITDA, with margins improving 330 basis points YoY to 11 per cent. Industry-segment margins rose 420 basis points YoY to 19.5 per cent, while power-segment margins increased 250 basis points to 12.9 per cent, according to Jefferies. The brokerage raised its estimates to factor in the 595-basis-point improvement in gross margin in Q2FY27, while maintaining an 'underperform' rating and a target price of Rs 442.
Following improvements seen in FY26 and sustained in the first half of FY27, Axis Capital lowered its working-capital intensity assumptions, resulting in higher net interest income. It raised its FY28 and FY29 earnings-per-share estimates by 25 per cent and 23 per cent, respectively, and revised its discounted cash flow-based September 2027 target price to Rs 305. Its assumptions include 10 per cent compound annual growth in revenue over FY26–FY35 and 2 per cent terminal growth. Axis Capital maintained its 'sell' rating.
Improving execution, margin recovery and diversification beyond thermal power strengthen BHEL's medium-term growth outlook, although timely order conversion and sustained execution momentum remain key monitorables, said PL Capital. It maintained its 'reduce' rating and revised its target price to Rs 426, factoring in stronger execution.
Macquarie raised its estimates and upgraded the stock to 'neutral', with a target price of Rs 420, citing continued execution momentum and margin expansion. "The order backlog remained strong, rising 17 per cent YoY to Rs 2.58 lakh crore. Order intake was muted in Q2, down 82 per cent YoY, but was down only 13 per cent YoY in H1," it said.
ICICI Securities expects BHEL to record order inflows of Rs 60,000 crore in each of FY27 and FY28. The brokerage revised its FY27 and FY28 earnings-per-share estimates to Rs 8.8 and Rs 13.5, respectively, from Rs 7.3 and Rs 13, and introduced a FY29 estimate of Rs 15.7. It maintained its 'buy' rating and raised its target price to Rs 550 from Rs 520 as it rolled over its valuation to FY29.
BHEL has announced capital expenditure of Rs 500 crore and resumed hiring after nearly 15 years. Factoring in the improvement in execution and gross margins, JM Financial raised its EBITDA margin estimates for FY28 and FY29 to 13.2 per cent and 15 per cent, respectively. The brokerage maintained its 'buy' rating and raised its target price to Rs 535, citing a promising thermal order pipeline and the company's net cash position. It values the stock at 30 times its September 2028 estimated earnings per share.