Bharat Heavy Electricals shares fell nearly 5 per cent on 15 October, despite the state-owned engineering company reporting a sharp improvement in its September-quarter performance. The stock had gained almost 4 per cent in the previous session after the company announced its Q2 results.

Consolidated net profit more than doubled to Rs. 8.21 bn in the July-September quarter of FY27, compared with Rs. 3.75 bn in the corresponding period a year earlier. Total income increased 24 per cent year on year to Rs. 95.53 bn from Rs. 76.86 bn, supported by growth in the power and industry businesses.

Power-segment revenue rose to Rs. 66.38 bn from Rs. 56.76 bn, while industry revenue increased to Rs. 26.62 bn from Rs. 18.36 bn. However, expenses also climbed to Rs. 84.82 bn from Rs. 72.02 bn. Fresh order inflows declined 85 per cent year on year, although the order book stood at Rs. 2.6 tn, equivalent to 7.6 times FY26 sales.

Nuvama Institutional Equities retained its Buy rating and raised its target price to Rs. 540 from Rs. 530. It cited strong execution, improving margins and earnings growth, while projecting EBITDA margin expansion to 13.8 per cent by FY29. The brokerage also estimated a 53 per cent compound annual growth rate in earnings per share between FY26 and FY29, but reduced its FY27 EPS estimate by 12 per cent.

JM Financial also retained its Buy rating and raised its target price to Rs. 535. It highlighted improving execution, higher gross margins, a strong thermal power project pipeline and net cash of Rs. 46 bn. The brokerage said the working-capital cycle improved to 141 days from 164 days in FY26, while BHEL shares remained above their 20-day and 50-day DEMA, indicating a positive broader trend despite recent volatility.