BHEL shares rally 44% in 2 months check Q4 results preview & price targets

BHEL Q4 results preview: Bharat Heavy Electricals Ltd (BHEL) is scheduled to report results for the quarter and financial year ended on March 31, 2025 on Friday, May 16, 2025. The state-run capital goods major may also consider and approve a dividend for the financial year 2024-25.

Analysts tracking the stock are expecting BHEL to report a strong rise in revenue in the March 2025 quarter on both year-on-year (YoY) and quarter-on-quarter (QoQ) basis. Ebitda on a sequential basis may rise sharply on the back of strong margin expansion. PAT is seen jump manifold QoQ but some analyst expect a soft performance in adjusted profit on yearly basis.

Kotak Institutional Equities expects BHEL to report a revenue of Rs 10,414 crore, up 26.1 per cent YoY and 43.1 per cent QoQ in Q4FY25. Ebitda may come in at Rs 776.7 crore, up 6.7 per cent YoY and 153.3 per cent QoQ, with margins increasing 327 bps sequentially. Net profit may come in at Rs 462.7 crore, down 4.5 per cent YoY but up 270 per cent QoQ.

"We expect a 22 per cent YoY improvement in revenues, driven by the power and industrial segments. We expect the gross margin to improve 90 bps YoY, though we expect the Ebitda margin to contract 130 bps yoy on the normalization in provisions, as seen in 9MFY25. We expect flat PBT YoY," said Kotak, which has a 'sell' rating on the stock with a target price 115 on the stock.

Ahead of its Q4 results, shares of BHEL jumped more than 3.75 per cent to Rs 254 on Friday, commanding a total market capitalization of more than 88,000 crore. Even after a 44 per cent recovery in last two months, the stock is still down 25 per cent from its 52-week high at Rs 335.40 hit in July 2024.

JM Financial is expecting BHEL's revenue to come in at Rs 10,668.5 crore in March 2025 quarter, up 29.2 per cent QoQ and 46.6 per cent YoY. Ebitda is seen at Rs 1,046.1 crore, up 43.7 per cent YoY and 243.8 per cent QoQ. Net profit may come in at Rs 737.9 crore, up 50.7 per cent YoY and 447.8 crore in QoQ.

BHEL is expected to report good performance driven by good execution, higher dispatches and operating leverage, said JM Financial. The domestic brokerage firm has a 'buy' rating on the stock with a target price of Rs 358.

B&K Securities, which has a 'hold' rating on BHEL pencils revenue at Rs 11,226.5 crore, up 35.9 per cent YOY and 54.3 per cent QoQ. Ebitda margin for the quarter may improve sharply, around 670 bps, to 15.5 per cent. Adjusted net profit may come in at Rs 1,490.7 crore, tripling on a YoY basis but a manifold jump sequentially.