BHEL shares faced a sharp decline of 6% in early trading today, February 11, 2026, reaching a low of 259.30 on the BSE. This movement follows the government's announcement of an Offer for Sale (OFS) to divest up to a 5% stake in the state-run engineering giant. The government aims to raise approximately 4,422 crore through this divestment. The base offer involves a 3% stake sale of 10.44 crore shares, with an additional 2% greenshoe option of 6.96 crore shares available to accommodate oversubscription. The floor price for the OFS is set at 254 per share. This represents a significant discount of approximately 8% compared to the previous closing price. The bidding window opened for non-retail investors on Wednesday and will open for retail investors on Thursday, February 12. Despite the immediate share price correction, the company recently reported a robust financial performance for the third quarter ended December 2025. Consolidated net profit surged by nearly 190% year-on-year to 390.40 crore. Revenue from operations also saw a healthy 16.4% increase, reaching 8,473 crore. Operational efficiency has improved, with EBITDA margins expanding to 6.4%. The company’s order pipeline remains strong, highlighted by a recent letter of acceptance for a 2,800 crore syngas purification plant project from Bharat Coal Gasification and Chemicals Limited. The broader sector context remains supportive as India's power demand continues to rise. National peak electricity demand reached record levels of 242.49 GW in the 2025-26 fiscal year. Total installed capacity has now crossed the 500 GW milestone, with non-fossil fuel sources accounting for 51.5% of the generation mix. Market analysts maintain a mixed outlook on the stock. While eight analysts currently hold "buy" ratings with target prices as high as 370 per share, others remain cautious due to valuation concerns, with the current price-to-earnings ratio standing at approximately 119.9. The government's current holding in the company stands at 63.17%. This stake sale is part of a revised disinvestment programme for the 2025-26 fiscal year, which targets total receipts of 33,837 crore. This move is expected to improve the stock's liquidity and increase public shareholding in the Maharatna PSU.