The Bharat Heavy Electricals Limited (BHEL) stock has faced significant volatility following the government's announcement of an Offer for Sale (OFS) to divest a **5% stake**. The move, aimed at raising approximately **₹4,422 crore**, includes a **3% base offer** and a **2% green-shoe option**. Market reaction was immediate, with shares declining over **6%** on Wednesday, February 11, 2026, to an intraday low of **₹259.25**. The floor price for the OFS was set at **₹254**, representing an **8% discount** to the previous closing price of **₹276.05**. This pricing adjustment triggered a sharp correction as the market aligned with the offer terms. [Image of a thermal power plant turbine] Despite the short-term price pressure, BHEL’s operational fundamentals show a distinct upward trajectory. The company recently reported a robust **Q3 FY26** performance, with consolidated net profit jumping nearly threefold to **₹390.40 crore** from **₹134 crore** in the previous year. Revenue for the same period rose **16.4%** to reach **₹8,473 crore**, while EBITDA margins expanded from **4.2% to 6.4%**. The company's order book remains a primary pillar of strength, currently valued at over **₹2.22 lakh crore** as of late 2025. Recent wins, such as a **₹2,800 crore** syngas plant order from Bharat Coal Gasification and Chemicals Limited, provide revenue visibility for the next **3 to 4 years**. The power sector continues to dominate the portfolio, accounting for roughly **80%** of outstanding orders. Analysts remain divided on the immediate outlook. While the OFS is viewed as a necessary divestment rather than a structural rerating trigger, it increases the stock's free float and liquidity. Technical experts identify **₹254** as a critical support zone, while resistance is expected between **₹276 and ₹280**. Short-term traders are likely to face continued volatility during the share allotment phase. However, for investors with a medium to long-term horizon, the combination of improved execution, a record order pipeline, and a debt-free balance sheet offers a compelling recovery narrative. The focus now shifts to the company's ability to maintain margin stability and meet commissioning timelines for its supercritical thermal and nuclear projects.