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Stellar Q4 Earnings Drive Record High
BHEL's strong financial performance in the January-March 2026 quarter fueled the stock's rally. Net profit more than doubled to ₹1,282.68 crore, up from ₹504.05 crore a year ago. Revenue from operations also grew significantly, rising 36.9% year-on-year to ₹12,310 crore.
Robust Order Inflows Bolster Outlook
During the fiscal year ending March 2026 (FY25-26), BHEL secured total order inflows of approximately ₹75,000 crore. This boosted its outstanding order book to ₹2.4 trillion by year-end. Major orders came from the power sector (around ₹59,000 crore), with the industrial segment adding roughly ₹16,000 crore across transportation, defence, and process industries.
Investor Confidence Surges
Investor confidence is growing, with both foreign and domestic institutional investors increasing their stakes. Foreign institutional investors (FIIs) raised their holding to 7.2% in the quarter ending December 2025, up from 6.3%. Domestic institutional investors (DIIs) boosted their stake to 23.98% from 19.7%. This reflects a positive sentiment toward BHEL's growth prospects.
Analyst Expectations Point to Further Upside
Analysts at JM Financial Institutional Securities expect further upside for BHEL. They point to a strong pipeline of 18/14 GW (Gigawatts) and better visibility in non-thermal orders. The firm predicts improved execution and margin expansion, potentially reaching mid-teen percentages over the next two to three years, driven by product mix shifts and indigenization efforts. JM Financial views BHEL as attractively valued at 27 times its estimated FY28 earnings per share (EPS). They forecast significant EBITDA margin expansion, driving return on equity to at least 15% by FY28.