Street View: India's BHEL faces order slowdown risks despite strong profit jump

Bharat Heavy Electricals

05/05/2026 06:06

** India's Bharat Heavy Electricals BHEL.NS posted more than a twofold y/y increase in its fourth-quarter profit to 12.9 billion rupees ($135.31 million)

** Shares of BHEL rise as much as 2.89%, last up 1.13% at 381.30 rupees

STRONG EXECUTION, BUT SUSTAINABILITY IN QUESTION

** Kotak Institutional Equities ("sell"; TP: 140 rupees) says margin expansion was aided by one-offs such as provision write-backs and forex gains, even as execution improved

** JPMorgan ("underweight"; TP: 220 rupees) sees limited upside after the recent rally, saying the power equipment ordering cycle has peaked and inflows may decline further

** CLSA ("underperform"; TP: 282 rupees) says order inflows have likely peaked, while margin gains were driven by non-cash items, raising concerns on earnings quality

** BofA Securities ("underperform"; TP: 217 rupees) says strong margin-led beat was largely priced in, with elevated valuations and limited visibility on sustained margin expansion

($1 = 95.3400 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))