Bharat Heavy Electricals Ltd (BHEL) has witnessed an impressive rally of 44% in its stock price over the past two months, surging to ₹254 on Friday, May 16, 2025. This sharp upward movement comes just ahead of its Q4FY25 and full-year financial results, scheduled to be announced today. The state-owned capital goods major may also declare a dividend for the financial year 2024–25.
Analysts tracking BHEL expect a solid rise in revenue for the March 2025 quarter on both year-on-year (YoY) and quarter-on-quarter (QoQ) bases. Sequentially, EBITDA is likely to register a significant jump, driven by improved margins. However, while quarterly profit after tax (PAT) may rise sharply, some analysts anticipate a modest performance on a YoY basis when considering adjusted profits.
Kotak Institutional Equities projects BHEL’s revenue at ₹10,414 crore in Q4FY25, reflecting a 26.1% YoY and 43.1% QoQ increase. EBITDA is estimated at ₹776.7 crore, marking a 6.7% YoY and 153.3% QoQ rise, with margins expanding by 327 basis points sequentially. The net profit is forecast at ₹462.7 crore—down 4.5% YoY but up 270% QoQ. Despite revenue growth being driven by power and industrial segments, Kotak expects the EBITDA margin to contract by 130 bps YoY due to normalized provisions seen earlier in FY25. It maintains a ‘sell’ rating on BHEL, with a target price of ₹115.
Meanwhile, JM Financial anticipates even stronger numbers, estimating revenue at ₹10,668.5 crore—up 46.6% YoY and 29.2% QoQ. The brokerage expects EBITDA to reach ₹1,046.1 crore (up 243.8% QoQ and 43.7% YoY), and net profit to come in at ₹737.9 crore—marking a substantial 447.8% jump sequentially and a 50.7% rise YoY. The firm highlights better execution, increased dispatches, and operating leverage as key drivers and maintains a ‘buy’ rating with a bullish target price of ₹358.
B&K Securities has a more conservative stance with a ‘hold’ rating. It estimates BHEL’s Q4FY25 revenue at ₹11,226.5 crore—up 35.9% YoY and 54.3% QoQ. The brokerage expects EBITDA margins to improve sharply by around 670 basis points to 15.5%, with adjusted net profit surging to ₹1,490.7 crore, nearly tripling YoY and rising manifold from the previous quarter.
Despite the recent rally, BHEL shares remain 25% below their 52-week high of ₹335.40 recorded in July 2024. Investors and analysts alike will be closely watching today’s results for further cues on the company’s trajectory and potential dividend announcement.
