BHEL share price: Brokerages see up to 23% upside after Maharatna PSU posts first Q1 profit in 8 years
The company on Thursday reported a consolidated net profit of nearly Rs 377 crore for the April-June quarter, compared with a net loss of Rs 455.5 crore in the year-ago period. Revenue from operations jumped more than 40% year-on-year to Rs 7,697.72 crore from Rs 5,486.91 crore a year earlier.
The PSU’s operating profit margin improved sharply to 6.69% in Q1 FY27, from a negative 9.54% in Q1 FY26, while net profit margin rose to 4.89%. Its net worth rose more than 9% YoY to Rs 26,471 crore during the quarter under review, while earnings per share (EPS) stood at Rs 1.08.
After the release of the results, BHEL shares jumped to a fresh 52-week high of Rs 446.50 apiece on Friday, before seeing some profit booking today. The stock is overall up more than 43% in 2026 so far. In the longer term, the company’s shares have delivered 67% returns over one year, 336% over three years, and 561% over five years.
Also read |BHEL Q1 Results: Maharatna PSU posts net profit of Rs 377 crore in Q1, revenue jumps 40%
ICICI Securities on BHEL share price
ICICI Securities said BHEL has started the ongoing financial year 2027 on a strong note, with revenue growing 40% YoY. The PSU reported a net profit, positive for the first quarter, after Q1 FY19.
“We believe this performance was driven by a pick-up in execution of projects won in the new cycle – these have better realisation. It has won new orders worth Rs 2.7 trillion over the last three years. BHEL reported Q1 FY27 order inflow (OI) of INR 267bn, taking its order book (OB) to Rs 2.6 trillion – 7.2x TTM sales. We expect execution to grow at a 13% CAGR over FY26–28 and profitability to improve further on the back of multiple levers,” it said.
The brokerage maintained its ‘Buy’ call on the shares of ICICI Securities, but increased its target price to Rs 520 apiece from Rs 450 apiece. The latest target price implies an upside potential of more than 23% from the stock’s previous closing price of Rs 422 apiece.
JM Financial on BHEL share price
JM Financial also noted that the company posted profit in the first quarter for the first time in eight years. The domestic brokerage named BHEL among its top 5 picks as the 97GW of the original target for thermal additions now extends to 110GW+.“Notwithstanding the current performance, we maintain FY27E revenue at Rs 419 billion (24% YoY), gross margin of at least 31.5% (29% in FY26) and EBITDA margin of 10.4% (6.9% in FY26),” JM Financial said. It maintained its ‘Buy’ rating on the shares of the company with a target price of Rs 481 apiece, implying a 14% upside potential.
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