Bharat Heavy Electricals Ltd (BHEL) shares rallied 4% following the company’s impressive Q3 FY25 earnings. As of 9:17 AM, the shares were trading 4.35% higher at ₹195.78. The state-owned engineering giant reported a 123.5% year-on-year (YoY) surge in net profit, reaching ₹134.7 crore, compared to ₹60.3 crore in the same period last year. The company’s revenue from operations saw a robust 32.2% growth, rising to ₹7,277.1 crore from ₹5,503.8 crore YoY. This surge in revenue was a key driver of the significant profit growth.
At the operating level, EBITDA soared 40.6% to ₹304.3 crore in Q3 FY25, compared to ₹216.5 crore in Q3 FY24. The EBITDA margin improved slightly to 4.2%, up from 3.9% in the previous year. The strong financial performance reflects higher order execution and improved efficiency, reinforcing investor confidence in BHEL’s growth trajectory. The company’s order inflows stood at ₹68.6 billion in Q3, significantly higher than ₹25.7 billion in Q3FY24, with 80% of new orders coming from the industry segment.
Brokerages have taken contrasting views on BHEL’s performance. Morgan Stanley maintains an Overweight rating with a target price of ₹352, highlighting strong revenue growth and better-than-expected profitability. The firm noted that standalone revenue rose 32% YoY, while EBITDA and adjusted PAT surpassed estimates at ₹3 billion and ₹1.25 billion, respectively. CLSA, on the other hand, remains cautious, maintaining an Underperform rating and cutting its target price to ₹166, citing concerns over BHEL’s margin pressures and rising competition, particularly with L&T entering the thermal power equipment space. CLSA pointed out that while BHEL’s backlog grew 47% YoY due to increased capital expenditure, the stock remains expensive at 34x FY26 estimated PE, with weak EBITDA margins failing to justify its current valuation.
BHEL shares opened at ₹184.14, reaching a high of ₹195.95 before touching the day’s low of ₹184.14. The stock is currently at its 52-week low of ₹184.14, with a 52-week high of ₹335.35.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
