1 month ago
BHEL Shares: Analysts Divided on Future Prospects
BHEL, a big Indian company that makes heavy electrical equipment, just announced its results for the first three months of the year.
They made a profit of Rs 376.71 crore, which is great because they had a loss last year.
Their revenue also went up by 40.29%.
Some experts think this is good news and that the company will keep doing well because they have a lot of orders.
But other experts are worried because the demand for coal power plants, which is BHEL's main business, might go down in the future.
They think the company's stock price is too high right now.
So, some people think you should buy BHEL's stock, while others think it's a good time to sell.
BHEL reported a net profit of Rs 376.71 crore in Q1 FY27, up from a net loss of Rs 455.50 crore in the same quarter last year.
Revenue from operations rose 40.29% YoY to Rs 7,697.72 crore.
BHEL's order book stands at a record Rs 2.6 lakh crore, providing strong revenue visibility.
Analysts are divided, with some recommending 'buy' ratings and target prices up to Rs 575, while others suggest 'sell' with target prices as low as Rs 150.
Bearish analysts caution about moderating thermal power orders and long-term threats from renewable energy and battery storage.
- Who
- Bharat Heavy Electricals Ltd (BHEL)
- What
- Analysts are divided on BHEL's future prospects following its Q1 FY27 results.
- Where
- India
- When
- Q1 results announced on July 16, 2026.
- Why
- BHEL's strong Q1 results and record order book have led to differing analyst opinions on its future performance.
Bullish Analysts
Bearish Analysts
Order Book and Revenue Growth
Bullish Analysts
Bullish analysts highlight BHEL's record order book of Rs 2.6 lakh crore and strong revenue growth of 40.29% YoY, indicating robust earnings visibility and sustained growth.
Bearish Analysts
Bearish analysts argue that the best of the thermal power plant ordering cycle is behind us, with FY26 order inflows falling 19% YoY, and see long-term threats from renewable energy and battery storage.
Profitability and Margins
Bullish Analysts
Bullish analysts expect operating leverage, a richer business mix, and improved project execution to drive further margin expansion and profitability.
Bearish Analysts
Bearish analysts believe that the current valuation already reflects near-term optimism and that the stock's sharp outperformance provides a good exit opportunity.
Key facts
- Company
- Bharat Heavy Electricals Ltd (BHEL)
- Quarter
- Q1 FY27 (June 2026)
- Net Profit
- Rs 376.71 crore
- Revenue from Operations
- Rs 7,697.72 crore (40.29% YoY growth)
- EBITDA
- Rs 503.86 crore
- Order Book
- Rs 2,60,300 crore (27% YoY growth)
- Market Capitalization
- Rs 1.4 lakh crore
- Stock Price
- Rs 409.15 (as of July 2026)
Quotes
ICICIDirect analyst
Financial analyst at ICICIDirect
““We believe the pace of order inflows will reduce sharply from hereon, as the initial scramble to order out and start construction of coal-based capacity normalizes. The rise of energy storage systems along with cheap solar poses a long-term existential threat to the quantum of coal-based power generation plants that India will need. As a result, the current stock price more than adequately factors in the long-term profit potential,””
businesstoday.in
““In our view, best of ordering upside is captured and bulk of value creation is likely to be earnings-led, where we remain ahead of consensus. Key upside risk to our thesis would be near-term large orders in coal gasification/nuclear segments, which we continue to monitor closely,””
businesstoday.in
Sources
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