BHEL Stock Surges 5% to ₹463.10 Following Strong Q2 Earnings
Bharat Heavy Electricals Limited reports a remarkable 120% increase in net profit, driving its stock to a new high.
BHEL's Q2FY27 net profit reached ₹809.62 crore, a 120% YoY increase.
The company's stock has doubled in value over the past year, outperforming the BSE Sensex.
BHEL's board approved a ₹500 crore capital investment for new manufacturing facilities.
Bharat Heavy Electricals Limited (BHEL) experienced a notable surge in its stock price, climbing 5% to reach ₹463.10 during intraday trading on the Bombay Stock Exchange (BSE) on Wednesday. This increase follows the announcement of the company's robust earnings for the second quarter of the financial year 2026-27, where it reported a standalone net profit of ₹809.62 crore, marking a significant 120% rise compared to the same period last year.
The impressive financial results have propelled BHEL's stock to surpass its previous peak of ₹455.90, which was recorded on October 7, 2026. In the current calendar year, BHEL's stock has outperformed the market, soaring by 61%, while the BSE Sensex has seen a decline of 14.6%. Over the past year, BHEL's stock price has doubled, contrasting sharply with the 11% drop in the benchmark index.
In addition to the profit surge, BHEL's revenue from operations for Q2FY27 rose by 23.8% year-on-year to ₹9,300 crore, up from ₹7,512 crore. The company's EBITDA margin also improved significantly, expanding by 330 basis points to 11.02%. For the first half of the financial year, BHEL reported a net profit of ₹1,192 crore, a remarkable turnaround from a net loss of ₹87 crore during the same period last year.
The board of directors of BHEL has approved a capital investment of ₹500 crore aimed at enhancing manufacturing capabilities for thermal and nuclear sets at its Haridwar unit. This strategic move is expected to bolster the company's production capacity and align with its growth objectives in the energy sector.
Looking ahead, analysts from ICICI Securities anticipate that BHEL will continue to gain momentum, projecting order inflows exceeding ₹70,000 crore for FY27. They expect the EBITDA margin to increase from 6.9% in FY26 to 11.5% by FY28, driven by a strong order book and improved project execution. With these positive indicators, BHEL is rated as a buy, with a projected fair value of ₹575 per share based on anticipated earnings growth.
