BHEL posts strong Q2 profit jump as brokerage sets ₹453 target

Bharat Heavy Electricals Limited shares are back in focus following strong second-quarter financial results and a positive outlook from a major brokerage.

Financial Growth

The state-run engineering firm reported a standalone net profit of ₹810 crore for the second quarter of financial year 2027, marking a 120% increase compared to ₹368 crore in the same period last year. Revenue from operations grew 23.8% to reach ₹9,300 crore. Earnings before interest, taxes, depreciation, and amortisation rose 76.6% to ₹1,026 crore, while operating profit margin improved to 11% from 7.7% a year earlier.

Expansion Plans

The company board approved a capital investment of roughly ₹500 crore to build new manufacturing units for thermal and nuclear equipment at its Haridwar plant. The board also cleared the merger of its Mumbai repair plant and Bengaluru electronics division into a single operational unit. Meanwhile, domestic brokerage Geojit Financial Services has upgraded its rating on the stock to a buy, setting a target price of ₹453 per share.

Context

Public sector undertaking stocks in India often draw investor attention due to large government-backed order books in critical infrastructure sectors like power. Brokerage price targets reflect projected earnings and execution timelines, but market values can still shift based on broader economic conditions and company performance.