**BHEL Market Brief: Government OFS and Growth Outlook** The Indian government has initiated a significant stake sale in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS) starting February 11, 2026. The floor price is set at **Rs 254** per share, representing an **8% discount** to the previous closing price of **Rs 276.05**. The base issue covers a **3% stake**, with an additional **2% greenshoe option**, potentially raising up to **Rs 4,422 crore**. The market responded with immediate volatility, as BHEL shares fell approximately **6%** in early trading to hover around **Rs 260**. This price action reflects the typical short-term pressure associated with a large-scale divestment, though the OFS valuation remains pinned at roughly **21x FY28** estimated earnings. **Strategic Order Wins and Infrastructure Roadmap** Despite the immediate price dip, BHEL’s operational momentum is supported by a massive order book exceeding **Rs 2,00,000 crore**. A key highlight is the recent **Rs 5,400 crore** contract for a coal gasification and ammonium nitrate project in Odisha. This project marks the first commercial application of BHEL’s in-house pressurized fluidized bed gasification technology. The company is a primary beneficiary of India’s thermal power expansion roadmap. The Ministry of Power plans to add **97,000 MW** of coal-based capacity by 2035 to meet rising peak demand, which reached **241 GW** in 2025. With nearly **40 GW** of thermal capacity currently under construction nationwide, BHEL’s core power segment is positioned for sustained execution. **Financial Turnaround and Sector Performance** BHEL has demonstrated a sharp financial recovery, reporting a net profit of **Rs 382 crore** for the quarter ending December 2025. This follows a spectacular **254%** year-on-year profit surge in the preceding quarter. A critical driver for the bullish long-term outlook is the expansion of EBITDA margins, which recently climbed toward **7.7%** due to improved cost controls and better project execution. Beyond traditional coal, the company is diversifying into high-growth areas including nuclear power and coal gasification. These segments, alongside a robust industrial portfolio serving defense and railways, provide a hedge against the global shift toward renewables. Analysts maintain a wide but generally positive price target range, with some optimistic projections reaching **Rs 375**, citing the company’s pivotal role in India’s infrastructure-led growth narrative.