Morgan Stanley Raises Target on BHEL Shares Following 250% Increase in Net Profit, Sees 17% Upside Potential
Bharat Heavy Electricals Ltd Sees Over 7 Percent Jump in Shares Following Quarterly Earnings
The analysts at Morgan Stanley, a global brokerage, have maintained an overweight rating on Bharat Heavy Electricals Ltd (BHEL) and raised its price target after the company reported a significant jump in consolidated net profit for the March 2026 quarter. Shares of BHEL on Monday settled more than 7 percent higher following the quarterly earnings, with the stock climbing 6.97 percent to settle at Rs 376.95 on the BSE. During the day, it surged 13.20 percent to Rs 398.95, its 52-week high.
On the NSE, the stock advanced 7.6 percent to close at Rs 379.20 per share. Morgan Stanley has raised the price target on the stock to Rs 444, indicating a potential upside of about 17 percent from Monday's closing level. The brokerage cited "better revenue execution and sustained power margins" as key catalysts, as well as "improving macro positioning within India's capex and power cycle."
BHEL on Monday reported a consolidated net profit of Rs 1,290.47 crore for the quarter ended March 2026, compared to Rs 504.45 crore in the year-ago period, according to an exchange filing. This represents a more than 2.5 times jump in consolidated net profit for the March 2026 quarter.
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Key Financial Highlights:
| Quarter | Consolidated Net Profit (Rs crore) | Total Income (Rs crore) |
|---|---|---|
| March 2026 | 1,290.47 | 12,553.50 |
| March 2025 | 504.45 | 9,142.64 |
Total income during the fourth quarter rose to Rs 12,553.50 crore from Rs 9,142.64 crore in the corresponding period of the previous financial year. Revenue from the power segment stood at Rs 9,509.85 crore in the quarter, up from Rs 6,192.41 crore in the same period a year ago.
For the full financial year 2025-26, the company's net profit increased to Rs 1,600.26 crore from Rs 533.90 crore in the previous year. Total income for the fiscal rose to Rs 34,589.83 crore from Rs 28,804.79 crore in 2024-25.
BHEL is a leading engineering and manufacturing enterprise in the energy and infrastructure sectors in India.
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Investor Takeaway
Investors should consider BHEL shares for potential upside of 17%.
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