Nuvama Institutional Equities retained its ‘Buy’ rating on Bharat Heavy Electricals Ltd (BHEL), calling FY26 a “clean-up year” as legacy low-margin projects near completion. The brokerage expects a sharp margin rebound in FY27 as execution of new, higher-margin orders gathers pace and operating leverage benefits start to play out. Advertisement

The brokerage cut its FY26E and FY28E earnings per share estimates by 22 per cent and 16 per cent, respectively, to reflect a lower FY26 operating margin forecast of 6.9 per cent (earlier 8.4 per cent) and the likely impact of the Eighth Pay Commission in FY28. Nuvama has raised its target price to Rs 353 (from Rs 335), maintaining a 25x FY28E earnings multiple.

BHEL reported a strong turnaround in Q2FY26, posting a profit after tax (PAT) of roug

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