BHEL shares fall 4% despite 119% profit growth in Q2 FY27

Bharat Heavy Electricals Limited (BHEL) shares fell 4.3% to ₹444.05 on October 15, 2026, after gaining nearly 5% in the previous session. The fall came despite a strong Q2 FY27 performance, with net profit rising 119% year on year to ₹821 crore.

Revenue increased 24% to ₹9,300 crore from ₹7,512 crore a year earlier. Brokerages Nuvama and JM Financial retained their Buy ratings and raised their target prices after the results.

BHEL Q2 results: Key numbers

Metric	Q2 FY27
Revenue	₹9,300 crore
Revenue growth	24%
Net profit	₹821 crore
Net profit growth	119%
EBITDA margin	11%
Order book	₹2.6 lakh crore
Net cash position	₹4,600 crore

BHEL's EBITDA margin rose by 330 basis points year on year to 11%, supported by better execution and improved gross margins.

BHEL share target price: Nuvama and JM Financial

Brokerage	Rating	Target price
Nuvama	Buy	₹540
JM Financial	Buy	₹535

Nuvama raised its target price from ₹530 to ₹540. The brokerage highlighted improved execution and higher margins, but noted that fresh order inflows fell 85% year on year. BHEL's order book stood at ₹2.6 lakh crore, equal to 7.6 times its FY26 revenue.

JM Financial raised its target price to ₹535, citing better margins, lower interest costs and stronger collections. The brokerage also noted that revenue from BHEL's power business grew 17%, while its industry segment recorded 45% growth.

What supported BHEL's profitability?

BHEL's gross margin improved to around 37%, while its working capital cycle shortened to 141 days from 164 days in FY26. Collections rose 33% year on year to ₹13,200 crore, helping reduce interest expenses to ₹120 crore from ₹200 crore in Q2 FY26.

The company also reported a net cash position of about ₹4,600 crore. However, the sharp fall in fresh order inflows remains a factor to monitor.

What should investors watch?

Investors will track new order wins, execution of existing projects and whether margins continue to improve. Nuvama expects BHEL's EBITDA margin to reach 13.8% by FY29, while JM Financial projects margins of 15% by FY29. These are brokerage estimates, not confirmed outcomes.

Why did BHEL shares fall despite strong results?

The shares fell 4.3% after gaining nearly 5% in the previous session. The supplied report does not establish a definitive reason for the fall.

What are the latest BHEL target prices?

Nuvama has a target price of ₹540, while JM Financial has set a target of ₹535. Both maintain Buy ratings.

What is BHEL's order book?

BHEL reported an order book of ₹2.6 lakh crore at the time of the results.