BHEL share price: Shares of public sector undertaking (PSU) — Bharat Heavy Electrical (BHEL) — tumbled nearly 5% in intraday deals on Thursday, August 7, as the company’s net loss in the first quarter of the financial year 2025-26 doubled. This marked the second straight day of losses for the Maharatna PSU stock, which lost over 3% a day ago.
BHEL share price hit the day’s low of ₹234.35 on the BSE today, down 4.7% from its last closing price of ₹239.65. The stock has declined nearly 8% in just two trading sessions.
BHEL Q1 Results
BHEL posted a net loss of ₹454.89 crore in Q1 FY26, nearly double the ₹212.52 crore loss the company had reported in the same quarter last fiscal.
The revenue from operations remained flat at ₹54,86.91 crore in the quarter under review due to subdued execution during the quarter. The figure stood at ₹5484.92 crore in the same quarter last year.
Other expenses increased from ₹340 crore in Q1 FY25 to ₹680 crore in Q1 FY26, possibly due to a certain one-off provision. As a result, margins took a hit, with the EBITDA margin contracting to -9.8% from -3.1%.
BHEL stock: Should you buy, sell or hold?
However, despite the poor Q1 show, brokerages remained bullish on the PSU stock as they believe the revival is likely on the back of a strong order book.
Nuvama Institutional Research said BHEL reported muted Q1 results, but retained a ‘BUY’ rating on the PSU stock, saying the ongoing streak of fresh orders reaffirms our thesis of a thermal revival, wherein BHEL may benefit from a near monopoly (90%+ market share), implying it may win another ~17GW over the next two–three years.
We factor in execution spill-over and cut FY26E/27E EPS by ~15%/5%, the brokerage said, assigning a target price for BHEL stock of ₹335 (from ₹360 earlier).
Similarly, JM Financial also expects the performance of BHEL to improve from 3QFY26, given the profile of major projects under construction.
“The total order book stands at ₹2,044 billion, which is likely to increase to ₹2,250 billion by March 2026. As execution of legacy projects is nearing completion and industry orders-mix improves, EBITDA margin is likely to improve gradually from 4.4% in FY25 to at least 11% in FY28,” the brokerage said. It maintained its BUY rating on BHEL with an unchanged TP of INR 278 (30x FY27EPS).
BHEL share price: Technical View
Anshul Jain, Head of Research at Lakshmishree Investment, sees more short-term pain for BHEL stock.
“Post weak results, BHEL has broken down from its established range of 240–270, signalling a shift in trend. While volumes on the breakdown are missing, the price action clearly reflects weakness and suggests that sellers are in control. The lack of strong buying interest confirms the bearish sentiment,” Jain opined.
Given the structure, the stock now appears headed toward the next major support zone in the 199–190 range, he said, adding that Unless it reclaims 240 quickly with strong volumes, further downside remains likely in the near term.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.