Brokerages say India's BHEL's Q3 gross margins drag on earnings, shares fall

Bharat Heavy Electricals

20/01/2026 04:28

** Shares of India's Bharat Heavy Electricals Ltd's (BHEL) drop 3% to 255 rupees, on track for third straight session of losses

** On Monday, power equipment maker  reported third-quarter  consol rev rose16% yoy; PAT more than doubled

** JM Financial ("Buy", PT at cuts PT to 355 rupees from 363 rupees) says co missed its expectations on revenue, EBITDA margin

** Adds co's current focus on completion of 10.2GW of pre-Talcher projects in 2026, impacting margins

** Brokerage Nuvama ("Buy", PT at 353 rupees) says co missed the PAT estimate by 26% as gross margins fell to 30.8% on the accelerated execution of low-margin legacy projects

** We are slashing FY26E EPS (earnings per share) by 21% on an operating profit margin cut to 6%, to reflect the bunched execution of legacy projects in H2FY26- Nuvama

** BHEL rated "Hold" on avg by 19 analysts covering it; median PT at 250 rupees- data compiled by LSEG

** In 2025, BHEL gained 25%

(Reporting by Komal Salecha in Bengaluru)

((komal@thomsonreuters.com))