BHEL shares: Q3 results previews, targets, order wins as analysts see strong upside

BHEL target price, Q3 results: Brokerage firms continue to remain positive on state-run capital goods major Bharat Heavy Electrical Ltd (BHEL) ahead of its results for the quarter ending December 31, 2025. The company will announce its earnings on Monday, January 19 as per its exchange filing.

BHEL has achieved yet another significant milestone in its 'Make in India' initiatives for the rail transportation sector by commencing supply of underslung traction transformers for the prestigious Vande Bharat sleeper train project being executed by BHEL-led consortium with TRSL, said the company in an exchange filing on Thursday.

Shares of BHEL settled at Rs 267.65 on Wednesday, up 0.83 per cent for the day. However, the stock has cracked nearly 13 per cent from its 52-week high at Rs 305.85, hit just a week ago on January 07. Despite this correction, the stock is up nearly 15 per cent in the last three months and 32 per cent in last one year.

BHEL is India’s largest engineering PSU engaged in the manufacture and supply of power plant and heavy electrical equipment including turbines, generators, boilers, transformers, switchgears, and hydro sets. It operates across industrial equipment, defence, transportation and oil & gas and has demonstrated advanced engineering capabilities.

In Q2 FY26, BHEL reported revenue growth of 14.1 per cent YoY to Rs 7,512 crore, driven by an 18 per cent YoY increase in the industry segment and a 12.9 per cent YoY rise in the power segment, said Master Capital Services. Order inflows stood at Rs 35,000 crore, with strong traction in the industry segment, while PAT increased by 302 per cent YoY to Rs 360 crore, it said.

Commenting on the technical charts of BHEL, Master Capital said that has witnessed a decisive improvement in price structure after breaking out of a long-standing symmetrical triangle pattern on the weekly timeframe. The breakout was accompanied by strong bullish candles, confirming a shift in trend and renewed buying interest.

"The recent consolidation suggests a healthy pause following the sharp rally, rather than any loss of momentum. As long as the stock holds above its key moving average support zone, the broader outlook remains constructive. Traders may consider a buy-on dips approach or look for continuation above recent highs to add fresh long positions with defined risk," Master Capital adds.
 

BHEL Q3 results preview

Antique Stock Broking is expecting BHEL's revenue to come in at Rs 9,906.1 crore, up 36 per cent YoY and 32 per cent QoQ in December 2025 quarter. Ebitda is seen at Rs 851.9 crore, up 180 per cent YoY and 47 per cent QoQ. Net profit may jump 315 per cent YoY and 41 per cent Qoq at Rs 517.7 crore for the reported quarter, as per the brokerage's estimates.

According to JM Financial, BHEL’s net revenue could rise 22 per cent YoY with 7.3 per cent EBITDA margin led by a pickup in execution and increasing share of new orders in execution mix in December 2025 quarter. It expects improvement in sales due to healthy order book and execution along with improvement in Ebitda due to operating leverage & better orders’ mix

"We exepct Q3 to see the lingering impact of legacy low margin projects (Patratu and Ennore) which may keep results/margins depressed. However Q4FY26 onwards, we expect the newer projects to enter sale recognition phase which will a turnaround by FY27," said Nuvama Institutional Equities.
 

Why BHEL shares took a hit

In a recent blow to BHEL, which results in a sharp correction in the stock prices, Indian finance ministry plans to scrap five-year old restrictions on Chinese firms bidding for government contract, as New Delhi seeks to revive commercial ties in an environment of eased diplomatic and border tensions.

The curbs, imposed in 2020 after a deadly clash between the countries' troops, required Chinese bidders to register with an Indian government committee and obtain political and security clearances. Officials are now working to remove the registration requirement for bidders from bordering nations, and the final decision will be made by PMO.

The decision to ease curbs follows requests from other government departments that are facing shortages and project delays due to the 2020 restrictions. Several ministries have requested exemptions to overcome the constraints that could derail projects in their sectors, said B&K Securities in its recent note.

Specifically, curbs on imports from China of equipment for the power sector have hindered India's plans to raise its thermal power capacity to about 307 GW over the next decade, it said. "Hence, we believe Power equipment players like BHEL, Siemens Energy, Hitachi Energy, could witness higher brunt of the decision," B&K adds.
 

BHEL target prices

Master Capital Services has a 'buy' rating on BHEL with a target price of Rs 340-360 on the stock. It has suggest to 'buy' the stock at Rs 278 and on correction till Rs 255, with a strict stop loss at Rs 223. Master Capital sees up to 35 per cent upside in BHEL from current levels.

On the other hand, Antique Stock Broking has a 'buy' rating on BHEL with a target price of Rs 349 as the stock remains among its top picks from the sector. Nuvama Institutional Equities and JM Financial also have same rating on the stock with a target price of Rs 353 and Rs 363, respectively.