Bharat Heavy Electricals Limited shares rallied 6.03 per cent to ₹260.18 on Thursday afternoon, with heavy volumes of 64.8 million shares traded worth ₹1,646 crore, as investors reacted to the company’s improved quarterly performance. The stock opened at ₹254 and touched an intra-day high of ₹260.75, building on gains from Wednesday’s result announcement.
However, brokerage houses offered contrasting views on the PSU’s performance. Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹258, noting revenue growth of 14 per cent against its estimate of 9 per cent, while EBITDA came in at ₹5.8 billion versus its estimate of ₹1 billion. CLSA took a more cautious stance with an ‘Under-Perform’ rating and target of ₹198, flagging that the operational improvement was driven by non-cash forex mark-to-market gains rather than genuine business strength. The firm noted BHEL trades at an expensive 43x FY26 consensus earnings despite remaining in net loss for the first half.
BHEL posted a standalone net profit of ₹368 crore for Q2 FY2025-26 compared to ₹97 crore in the year-ago quarter, on revenues of ₹7,512 crore, up from ₹6,584 crore. The power segment saw revenue growth of 13 per cent with 10.5 per cent EBIT margin, while the industry segment grew 18 per cent with 15.3 per cent margin. The company’s order book stood at ₹2.19 lakh crore.