BHEL shares up 42% in April: Target prices hiked again; Q4 results expectations

BHEL share price: State-run capital goods major Bharat Heavy Electricals Ltd (BHEL) continues to draw attention from brokerage firms which remain largely positive on the stock considering the strong order book and healthy growth in financials. JM Financial has increased the upside target price for BHEL by 14 per cent, considering a nearly 38 per cent rise in the stock in April so far.

Shares of BHEL settled at Rs 347.45 on April 27, Monday, while the stock hit its 52-week high at Rs 341 on April 23, Thursday. The total market capitalization of the company stood above Rs 1.21 lakh crore on Monday. The stock has gained nearly 42 per cent from close at Rs 245.50 on March 30.
 

BHEL shares: Why JM increased its target price

JM Financial believes that order book has not yet peaked given 18/14GW of pipeline along with improving nonthermal visibility. With the commissioning of 8.9/10GW of legacy projects, pickup in both execution and margin is certain. The stock is trading at 27 times FY28E EPS (consensus) at Q4FY26E Ebitda margin of 11 per cent (consensus), it said.

"We reckon the permission to import from China, change in product mix in non-thermal orders, indigenisation of supercritical and op-lev would propel margins to mid-teens over next two–three years. Easing of working capital stress is likely considering large customer advances and commissioning of legacy projects," JM Financial said.

The brokerage sees 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 to 11.2 per cent in base case and RoE improves to at least 15 per cent by FY28E. These factors call for a premium. "We value the stock at a P/E of 32 times, yielding a revised target price of Rs 393," it said with a 'buy' rating.
 

BHEL shares Q4 results date

As of the recent exchange filings, BHEL has not disclosed the date and time of announcing its results for the quarter and financial year ending on March 31, 2026 yet. It is also not clear if the company will announce any dividend for the shareholders for the given period.
 

BHEL Q4 results preview

Kotak Institutional Equities is expecting BHEL's revenue to come in at Rs 10,520.9 crore, up 17 per cent YoY and 24.2 per cent QoQ. Ebitda is seen at Rs 914.7 crore, up 10 per cent YoY and 67.7 per cent QoQ, with margins coming in at 8.7 per cent, up 225 bps sequentially. Net profit is pencilled at Rs 627.9 crore, up 24.6 per cent YoY and 64.2 per cent QoQ.

"We see 17 per cent YoY improvement in revenues driven by Power and Industrial segments. We factor in a low single-digit impact on overall execution. We expect 56 bps YoY contraction in Ebitda margins, despite 160 bps YoY improvement in gross margins over a weak base, driven by our expectation of steady increase in employee costs YoY for the second consecutive quarter," Kotak adds.

On the other hand, PL Capital expects BHEL's revenue to come in at Rs 11,358.5 crore, up 26.3 per cent YoY and 34.1 per cent QoQ. Ebitda is penciled at Rs 1.185.2 crore, up 59.8 per cent YoY and 120 per cent QoQ. Andjust net profit is earmarked at Rs 797.2 crore, up 58.2 per cent YoY and 108.4 per cent QoQ.

"We expect BHEL to report revenue growth driven by strong execution in its Power segment. Ebitda margin is likely to expand by 120 bps YoY led by execution ramp-up. During the quarter, BHEL received Rs 13,500 crore  main plant package of 3×800MW Telangana Stage-II STPP along with some other Industry segment orders," it added.

BHEL FY26 business update misses’ consensus revenues by a mere 4 per cent, implying 21 per cent YoY growth for 4QFY26 of Rs 10,880 crore. We believe this doesn’t account for other operating income and therefore expect a largely inline 4Q vs street’s exp. Although the street has cut its FY26F EPS by 45 per cent versus start of the year, said InCred Capital, without rating the stock.

We continue to argue that order intake growth rate shall slowdown, on a high base plus limited thermal visibility as higher focus towards RE including nuclear. Backlog of Rs 2.4 lakh crore lends visibility for next 5-6 years. Post analysing the last 3-4 decades of India’s capex up-cycles, we believe that any capex cycle is playable for investors in two phases," it added.
 

BHEL target price

Antique Stock Broking has a 'buy' rating on BHEL with a target price of Rs 345, while ICICIDirect has the same rating on it with a target price of Rs 343. However, PL Capital has given it a 'hold' rating with a target price of Rs 245, while Kotak Institutional Equities has a 'sell' rating on BHEL with a target price of Rs 115.