BHEL shares fall over 6 percent as CLSA recommends 'Underperform' after net loss doubles

Shares of power plant equipment manufacturer BHEL were sharply lower by over 6 percent in early trade on August 7, reacting to the sharp widening of loss in the June quarter, with CLSA issuing an 'Underperform' call with a target price of Rs 198 per share, lower by over 17 percent compared to previous close.

State-owned Bharat Heavy Electricals (BHEL) said its net loss more than doubled to Rs 455.50 crore in the June quarter mainly due to higher expenses, compared to a net loss of Rs 211.40 crore a year ago. The total income rose slightly to Rs 5,658.07 crore in the quarter compared to Rs 5,581.78 crore a year ago.

CLSA in its note said the June quarter results missed consensus estimates as execution of order rose by a mere 4 percent on year. The street was anticipating am operational turnaround after two years of weak growth, but the performance was disappointing. The government's focus on energy security led to a resurgence in fossil fuel orders in the June quarter, with BHEL's thermal business orders peaking at 26.6 GW during FY25, CLSA noted.

BHEL's outstanding orderbook as on June 2025 stood at 2.04 lakh crore, with 21 percent share from exports.In the last one month, BHEL's shares are down 13 percent and on YTD basis, they are lower by 4 percent.