BHEL Shares Crash After Q3 Results: Shares of Bharat Heavy Electricals Limited (BHEL) came under heavy selling pressure on Tuesday after the company’s Q3 FY26 earnings failed to meet market expectations. The stock fell over 5 percent in intraday trade, reviving fears that the powerful rally seen over the past few years may be running out of steam. With leading brokerages turning cautious, investors are now worried about how deep the correction could go.
What Triggered the Sudden Fall in BHEL?
BHEL’s share price slipped to an intraday low of ₹248.85, down from its previous close of ₹263.05. The fall was largely driven by negative brokerage commentary following the Q3 earnings announcement. While the company reported growth in revenue and profit, analysts were disappointed by weak execution, margin pressure, and muted cash flows, which overshadowed the headline numbers.
Brokerages Turn Bearish on BHEL
Global brokerage Investec reiterated its “Sell” rating on BHEL and set a sharply lower target price of ₹70, indicating a potential downside of more than 70 percent from recent levels. According to Investec, BHEL continues to struggle with project execution due to a fragile supply chain. Over the years, several vendors in the thermal power segment have exited the market, leading to delays in equipment supply. The brokerage also highlighted that BHEL’s reduced in-house manufacturing has increased its dependence on external suppliers, adding further risk to execution timelines.
Kotak Institutional Equities also maintained a “Sell” rating on the stock and cut its target price to ₹120. The brokerage flagged weak operational performance in Q3 FY26, citing slower project execution, pressure on gross margins, and subdued cash flows. Kotak further reduced its FY28 earnings estimate by 15 percent, pointing to execution uncertainty and the possible impact of higher employee costs due to the proposed 8th Pay Commission.
Q3 FY26 Results: Strong Numbers, Weak Confidence
On paper, BHEL’s Q3 FY26 performance looked strong. The company reported consolidated revenue of ₹8,473 crore, up 16 percent year-on-year, while net profit surged to ₹390 crore from ₹135 crore in the same quarter last year. However, the market reaction suggests that investors are more concerned about the sustainability of these numbers rather than short-term growth. Analysts believe the profit jump was partly supported by a low base, while core operational challenges remain unresolved.
Order Book Remains a Key Support
Despite the negative sentiment, BHEL’s order book continues to provide comfort. As of December 31, 2025, the company’s outstanding order book stood at over ₹2.22 lakh crore, offering long-term revenue visibility. Order inflows up to Q3 FY26 crossed ₹45,900 crore, largely driven by the power segment. However, analysts caution that a strong order book alone is not enough unless the company can execute projects efficiently and protect margins.
Can BHEL Really Fall Below ₹100?
The big question now is whether BHEL’s share price can fall below the ₹100 mark. In the near term, such a steep decline appears unlikely unless there is a sharp deterioration in business fundamentals or a major market-wide sell-off. BHEL continues to benefit from strong government backing and its dominant position in the power equipment sector. That said, continued execution delays, margin pressure, and rising costs could keep the stock under pressure and lead to a deeper correction from current levels.
What Should Investors Do Now?
For short-term traders, BHEL is likely to remain volatile as the stock reacts to broker reports, order updates, and execution-related news. Long-term investors may prefer to stay cautious and wait for clearer signs of operational improvement before making fresh investments. Existing investors, especially those sitting on large gains from the past rally, may consider partial profit booking to manage risk.
Bottom Line
BHEL remains a strategically important PSU with a massive order book, but recent brokerage warnings have highlighted real challenges that cannot be ignored. While a fall below ₹100 seems extreme at this stage, the stock’s outlook in the coming months will largely depend on how quickly the company can improve execution, control costs, and restore investor confidence.
Disclaimer
This article is for educational and informational purposes only. It does not constitute investment advice. Stock investments involve risk and market conditions can change. Please consult a SEBI-registered financial advisor before making any investment decisions.
Pooja Sharma is an experienced professional writer with a strong background in the stock market and data-driven research. With seven years of academic and practical exposure at Lovely Professional University (LPU), she has built a solid foundation in financial analysis, market behavior, and business intelligence.
Her writing reflects a sharp analytical mindset and a clear understanding of complex financial concepts, which she translates into easy-to-understand, engaging content. Pooja specializes in stock market insights, data interpretation, and business-focused writing, delivering accurate and impactful work with consistency and professionalism.
