BHEL share price: Brokerage sees 36% upside, says ‘well placed to gain’; here’s why

Shares of Bharat Heavy Electricals Ltd (BHEL) climbed on Wednesday, after facing selling pressure on Tuesday, following its results for the December 2025 quarter. 

On Wednesday, shares of BHEL were up 0.48% at Rs 251.20 on BSE.

According to the brokerage firm ICICI Direct, the company is “well placed to gain from the need for building base load thermal coupled with strong revenue visibility in the medium term.”

Q3 performance

The optimism stems from BHEL’s operational numbers for Q3FY26. The company reported a 16.4% year-on-year rise in revenue to Rs 8,473 crore, a growth trajectory driven by both its power and industrial segments, it said

Profitability saw a significant jump, with Profit After Tax (PAT) surging 207% YoY to 382.5 crore. This bottom-line growth was supported by a sharp improvement in operational efficiency. 

The brokerage noted that EBITDA increased 79% YoY to Rs 545 crore, with margins expanding by 225 basis points to 6.4%, aided by favorable industrial mix and operating leverage.

Order book

During the quarter, BHEL bagged orders worth approximately Rs 10,900 crore, taking its total order book to a staggering Rs 2,22,800 crore.

The power segment remains the heavy lifter, constituting 80% of the total order book. ICICI Direct highlighted that this positions the company to benefit significantly from India's infrastructure push, specifically the thermal capacity addition target of ~97 GW by FY35 outlined by the Central Electricity Authority (CEA).

The brokerage estimates that revenues and PAT will grow at a CAGR of roughly 24.5% and 110%, respectively, over the FY25-FY28E period.

BHEL share price target

Citing these factors, ICICI Direct believes the strong ordering pipeline will aid margins and return ratios meaningfully over the next 2-3 years. Consequently, the brokerage has assigned a target price of Rs 343 on the stock, valuing it at 25x FY28E EPS, which implies a potential upside of approximately 36%.