BHEL Q2 results: Defence PSU stock up 5%, hits record high as profit soars 120%; check key highlights - Should you buy?
BHEL Q2 Results: Bharat Heavy Electricals Limited (BHEL) shares surged to a record high on Wednesday after the state-owned engineering company reported a sharp increase in September-quarter earnings, supported by strong revenue growth and improved operating profitability.
BHEL shares climbed 5% to an all-time high of ₹463.60 apiece on the BSE. The Maharatna public sector undertaking (PSU) reported a 120.1% year-on-year (YoY) jump in consolidated net profit for the second quarter of FY27, while revenue and operating earnings also recorded double-digit growth.
BHEL reported net profit of ₹810 crore for the quarter ended September 2026, up from ₹368 crore in the corresponding quarter of the previous financial year. This represented a 120.1% YoY increase in profit.
Revenue from operations rose 23.8% to ₹9,300 crore in Q2 FY27 from ₹7,511 crore a year earlier, reflecting a substantial improvement in the company's topline performance.
Operating profitability strengthened as well. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 76.6% YoY to ₹1,026 crore, compared with ₹581 crore in the year-ago quarter.
BHEL's EBITDA margin expanded to 11% in Q2 FY27 from 7.7% in Q2 FY26, indicating an improvement in operating profitability alongside higher revenue. The expansion in margins was particularly notable given the scale of the increase in earnings during the quarter.
However, other expenses rose to ₹721 crore from ₹391 crore in the previous quarter, marking a sequential increase. Investors will watch the company's expenses and margins in the coming quarters to assess whether the improvement in operating performance can be sustained.
Separately, BHEL's board approved a capital investment proposal of approximately ₹500 crore to establish additional manufacturing facilities for thermal and nuclear sets at its Heavy Electrical Equipment Plant (HEEP) in Haridwar. The proposed investment points to an expansion of manufacturing capabilities in these equipment categories.
The board also approved the merger of the Electrical Machines Repair Plant (EMRP) in Mumbai and the Electronics Division (EDN) in Bengaluru into a single unit. EDN will be the designated merged unit, with the merger effective November 1, 2026.
BHEL shares have delivered strong returns across multiple time frames, extending their rally after the latest earnings announcement. The stock has gained 58.16% year-to-date (YTD) in 2026 and advanced 7% over the past month.
Over the past three months, the stock has risen 14%, while its one-year gain stands at 99%. The shares have also generated multibagger returns over the longer term, surging 521% in five years.
BHEL's latest record high of ₹463.60 also puts the stock approximately 102% above its 52-week low of ₹229.70, recorded in September 2025.
The sharp rally reflects the stock's strong recent performance, while the latest quarterly results provide investors with fresh information on revenue growth, profitability and capacity expansion plans. Going forward, investors will monitor earnings growth, operating margins, execution of the proposed manufacturing investment and the company's ability to sustain its performance.
Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers Limited believes that BHEL is exhibiting strong bullish momentum, with the stock trading above all key moving averages, indicating a positive trend across multiple time frames.
“The price structure continues to form higher highs and higher lows, confirming the strength of the prevailing uptrend. Additionally, a breakout has been observed, suggesting the potential for further upward movement if the stock sustains its momentum. The technical outlook is further supported by the Relative Strength Index (RSI), which remains bullish on the daily, weekly and monthly charts,” he noted.
This alignment across multiple time frames indicates that buying interest remains strong and the broader trend continues to favour the bulls. Considering these technical developments, existing investors may consider holding their positions while monitoring the price action for further upside potential, suggested the expert.
The key level to watch is ₹440, which should act as the stop-loss threshold on a daily closing basis. A daily close below ₹440 would warrant a reassessment of the bullish view, he advised.
Meanwhile, Deepesh Sarawagi, Technical Research Analyst at Choice Broking also pointed out that BHEL's price action demonstrates strong bullish momentum, with a decisive green candle reclaiming swing highs and establishing fresh highs. The stock maintains an aligned bullish trend across all key moving averages, trading comfortably above its 20, 50, 100, and 200 daily EMAs.
"Immediate overhead resistance lies around the ₹465– ₹470 zone, where trend line extensions could pose brief friction; a sustained close above this can trigger further expansion toward ₹485– ₹500. On the downside, the previous swing breakout zone around ₹445– ₹440 acts as immediate support, followed by the rising 20 EMA near ₹433.
Momentum indicators affirm the upside push, with the 14-period daily RSI breaking out to 64.65 above its signal line (53.10). The breakout is backed by a surge in volume to 37.02M, confirming active accumulation and follow-through interest," he said.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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HomeMarketsStock MarketsBHEL Q2 results: Defence PSU stock up 5%, hits record high as profit soars 120%; check key highlights - Should you buy?
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