BHEL shares jump 3%, rally 10% in two days after Q4 results. What Morgan Stanley, other brokerages say

Shares of Bharat Heavy Electricals (BHEL) jumped another 3% on Tuesday, extending sharp gains to 10% over two days after the firm's strong Q4 FY26 earnings boosted investor sentiment and called for bullish brokerage calls.

The PSU company on Monday reported a whopping 156% YoY surge in its consolidated net profit to Rs 1,290.50 crore for the January-March quarter of the financial year 2026. Sequentially, net profit zoomed nearly 231% from the Rs 390.40 crore reported in the third quarter of the financial year 2025-26.

BHEL’s revenue from operations grew 37% YoY to Rs 12,310 crore in Q4 FY26, from Rs 8,993 crore in Q4 FY25. The company’s EBITDA more than doubled to Rs 2,005 crore during the quarter under review, from Rs 990 crore in the year-ago period.


Along with the Q4 results, BHEL said that its board has recommended a final dividend of Rs 1.40 per share of face value Rs 2 each, equivalent to 70% of the paid-up share capital for FY26, subject to shareholders’ approval at its upcoming Annual General Meeting. If approved, the dividend will be paid to the eligible shareholders within 30 days.

For the entire financial year 2026, BHEL's net profit surged 200% to Rs 1,600.26 crore, from Rs 533.90 crore in FY25. Revenue, meanwhile, grew 19% YoY to Rs 33,782 crore for the financial year, which ended on March 31, 2026.

Should you buy, sell or hold BHEL shares?

BHEL share price jumped 3% on Tuesday to trade at Rs 388.40 apiece. This comes a day after the stock surged 7% to close at Rs 377.05 apiece on Monday, after briefly hitting the 10% upper circuit.

JM Financial on BHEL

JM Financial said BHEL’s earnings marked an “all-round beat” on estimates. Its revenue was 23% above its estimate, and profit was 27% above expectations. “We expect BHEL to maintain order inflows of Rs 600 billion–700 billion each in FY27 and FY28. We revise our FY28E EPS from Rs 12.3-13.6, considering 100bps improvement in gross margin (has further upside potential; was 38–40% in 2008–12 cycle) and increase in interest income due to better OCF,” it said.

The domestic brokerage maintained its 'Buy' call on the stock, but increased its target price to Rs 435 apiece from Rs 393 apiece. The latest target price implies an upside potential of more than 15% from the stock’s previous closing price.

Also read: Tata Tech shares soar over 7% after Q4 results, but Motilal Oswal sees 15% downside; here’s why

Morgan Stanley on BHEL

Morgan Stanley maintained its 'Overweight' call on BHEL shares, but increased its target price to Rs 444 apiece from Rs 304 apiece. The latest target price implies an upside potential of nearly 18% from the stock's previous closing price.

It said that the company's Q4 execution, margins and operating cash flow were a positive surprise, ET Now reported, adding that the international brokerage now sees an improving macro backdrop benefiting thermal power and electrification themes. It expects margins to improve further as execution accelerates in FY27-28.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)