BHEL Share Price Hits 18-Year High as Q4 FY26 PAT Doubles to Rs 1283 Crore and Morgan Stanley Sees 17 Percent Upside After Earnings Beat

BHEL share price surged up to 13.2% to touch an 18-year intraday high of Rs 398.95 on May 4, 2026, after the Maharatna PSU reported consolidated Q4 FY26 net profit of Rs 1,282.68 crore, 2.55 times the Rs 504.05 crore reported in Q4 FY25. The BHEL share price settled at Rs 379.20, still up 7.6% on the day, as Morgan Stanley reiterated its Overweight view and raised its target price, seeing approximately 17% upside from the current BHEL share price level. The Q4 results beat all street estimates on both revenue and profitability.

BHEL’s Q4 FY26 results reflected the power sector capex super-cycle reaching execution inflection: revenue grew 36.9% year on year to Rs 12,310.37 crore, EBITDA margins expanded to approximately 14.24%, and the company generated cash earnings of Rs 4.53 EPS for the full year versus Rs 1.47 in FY25. The board recommended a final dividend of Rs 1.40 per share. Total order inflows for FY26 reached approximately Rs 75,000 crore, while the order book stands at Rs 2.2 lakh crore, providing 5 to 6 years of revenue visibility. The BHEL share price rally reflects investor confidence that this execution cycle is now sustainable.

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Why BHEL Share Price Hit an 18-Year High After Q4 Results

The BHEL share price hit its highest level in 18 years because Q4 FY26 results beat street estimates across every metric. Analysts at JM Financial had forecast PAT of Rs 1,005.9 crore; actual PAT came in at Rs 1,282.68 crore, a 27% beat. Revenue of Rs 12,310 crore versus JM estimate of Rs 10,028 crore was another significant beat. EBITDA margin of approximately 14.24% beat expectations of 14.2%. When a PSU with an order book of Rs 2.2 lakh crore beats across all metrics in the strongest seasonally, the BHEL share price reaction of a 13% intraday surge was entirely rational.

Morgan Stanley Overweight and 17 Percent Upside on BHEL Share Price

Morgan Stanley maintained its Overweight rating on BHEL share price and raised its target post Q4 results, seeing approximately 17% upside from current levels. The brokerage’s thesis centers on BHEL’s transformation from a legacy low-margin project executor to a high-utilisation capital goods manufacturer benefiting from India’s power capex super-cycle. Morgan Stanley had earlier raised its BHEL target to Rs 304, and the post-Q4 upgrade positions the BHEL share price for further rerating as FY27 execution data confirms the margin expansion visible in Q4 is repeatable.

JM Financial Buy Rating with Rs 393 Target on BHEL Share Price

JM Financial has a Buy rating on BHEL share price with a target of Rs 393, citing the order book of Rs 2.2 lakh crore as not having peaked given 18 GW and 14 GW of pipeline projects along with improving non-thermal visibility. JM attributes the revenue and margin improvement to a pickup in execution, operating leverage, and a rising share of new better-margin orders in the execution mix. The Rs 393 JM target was set pre-results and may see an upgrade following the significant Q4 beat.

Power Segment Drives BHEL Q4 Results Behind Share Price Surge

The Power segment delivered revenue of Rs 9,509.85 crore and segment profit of Rs 1,869.90 crore in Q4 FY26, confirming that India’s Rs 2 lakh crore annual power infrastructure investment is now generating meaningful revenue recognition at BHEL. The Industry segment contributed Rs 2,800.52 crore in revenue. During the BHEL share price rally quarter, the company also received a Rs 13,500 crore main plant package order for 3x800MW Telangana Stage-II STPP, adding to the record order book. FII stake in BHEL increased to 7.2% from 6.3% in December 2025, confirming foreign institutional validation of the BHEL share price re-rating thesis.

FY26 Annual Turnaround Confirms BHEL Share Price Re-Rating

Full-year FY26 PAT of Rs 1,577.95 crore rising 207.6% from Rs 512.97 crore, annual revenue of Rs 33,782.18 crore rising 19.2%, and net profit margin expanding to 4.67% from 1.81% confirm this is a structural operational turnaround, not a single-quarter event. The BHEL share price had already risen approximately 54% in the past month before Q4 results, and the strong beat validates the market’s forward-looking anticipation.

Risks to BHEL Share Price Upside

Despite the BHEL share price rally, risks remain. Industrial gas shortages affecting metal cutting operations have periodically constrained execution pace and could limit Q1 FY27 margin delivery. Legacy low-margin projects are still in the execution pipeline and will weigh on near-term margins. Kotak Institutional Equities maintains a Sell rating with a target of Rs 115, arguing the BHEL share price already fully prices in the order book execution, leaving limited margin of safety. Any slowdown in government power sector capex appropriation in Union Budget 2027-28 could dent order inflow momentum.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Consult a SEBI-registered financial advisor before making any investment decisions.

Frequently Asked Questions

Why did BHEL share price hit an 18-year high on May 4?

BHEL share price surged 13.2% to an 18-year intraday high of Rs 398.95 after Q4 FY26 results showed PAT of Rs 1,282.68 crore (2.55x YoY), revenue of Rs 12,310.37 crore (+36.9%), and EBITDA margin expansion to 14.24%. The results beat all analyst estimates. Morgan Stanley reiterated Overweight and sees 17% upside, while the board declared Rs 1.40 per share dividend.

What is BHEL Q4 FY26 net profit?

BHEL Q4 FY26 consolidated net profit was Rs 1,282.68 crore, up 2.55 times from Rs 504.05 crore in Q4 FY25. Full-year FY26 PAT stood at Rs 1,577.95 crore, up 207.6% from Rs 512.97 crore, with EPS of Rs 4.53 versus Rs 1.47 in FY25.

What is Morgan Stanley’s view on BHEL share price?

Morgan Stanley maintains an Overweight rating on BHEL share price and sees approximately 17% upside from current levels post the Q4 FY26 results beat. The brokerage’s thesis centers on BHEL’s position as India’s primary beneficiary of the power sector capex super-cycle with an order book of Rs 2.2 lakh crore providing 5 to 6 years of revenue visibility.

What is BHEL order book and FY27 outlook?

BHEL’s order book stands at Rs 2.2 lakh crore, with FY26 annual order inflows of Rs 75,000 crore. The company entered FY27 with strong momentum as analyst JM Financial notes the order book has not yet peaked given 18 GW and 14 GW of pipeline along with improving non-thermal visibility. The BHEL share price FY27 catalyst is sustaining Q4’s 14.24% EBITDA margin through Q1 delivery data.

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