Synopsis: Bharat Heavy Electricals Limited has received a Limited Notice to Proceed from Damodar Valley Corporation for the main plant package covering the boiler, turbine, and generator of a 1×800 MW supercritical thermal power station at Durgapur, West Bengal, with the full contract expected to be formally awarded within ten months of the June 10, 2026 LNTP issuance.
India’s largest power equipment manufacturer came into focus on June 11, 2026, after disclosing receipt of a Limited Notice to Proceed from a central government power utility for a new 800 MW supercritical thermal project. The LNTP won through International Competitive Bidding allows the company to commence advance engineering and begin ordering of critical long-lead items ahead of the full main plant contract award, which is expected approximately ten months from the date of issuance.
With a market capitalisation of Rs. 1,29,027.86 crore, the shares of Bharat Heavy Electricals Limited were trading at Rs. 370.55 per share, down 1.79 percent from its previous closing price of Rs. 377.30 apiece. The stock is trading at a P/E of 85.35.
LNTP Update
BHEL received the Limited Notice to Proceed on June 10, 2026, from Damodar Valley Corporation, Kolkata. The LNTP covers the main plant package comprising the boiler, turbine, and generator for a 1×800 MW supercritical thermal power station at Durgapur. Its scope is specifically limited to initiating advance engineering and placing orders on critical long-lead items whose procurement cycles would otherwise delay overall project timelines if deferred to the full contract stage.
The LNTP carries a disclosed value of over Rs. 90 crore. The main plant package contract covering the full supply and execution scope will be awarded by DVC to BHEL within ten months of the LNTP issuance date, which places the expected formal order around April 2027. The tender was won through International Competitive Bidding, confirming that BHEL was selected over international competitors. Both BHEL and DVC are public sector undertakings; the company confirmed no related-party implications arise from the transaction.
Order Scale in Context
The Rs. 90-crore LNTP is a preliminary commitment, not the full order. For a supercritical 800 MW BTG package covering a high-pressure boiler rated for parameters above 600 degrees Celsius and 250 bar, a multi-stage steam turbine, and a coupled generator the full main plant contract typically falls in the Rs. 2,500 to Rs. 3,500 crore range at current market rates, depending on the scope boundary between BHEL and the owner. At that scale, the full order would represent roughly 7 to 10 percent of BHEL’s FY2026 consolidated revenues of Rs. 33,782 crore, meaningful, though not transformative on its own.
The ICB designation is the operationally significant element. India’s supercritical thermal programme has historically attracted bids from Chinese, Korean, and Japanese BTG manufacturers, all of whom can price aggressively on large-volume packages. BHEL’s win on ICB terms confirms domestic cost competitiveness for 800 MW class equipment, an important signal as the government accelerates thermal capacity addition under its base-load security programme.
DVC is a statutory body under the Ministry of Power, responsible for generation and transmission across the Damodar Valley region spanning West Bengal and Jharkhand. The Durgapur supercritical station is part of a broader capacity augmentation drive within DVC’s generating fleet, most of which consists of older subcritical units with lower thermal efficiency.
Financial Trajectory
The order arrives as BHEL’s financial turnaround enters its most visible phase. The company reported consolidated revenues of Rs. 33,782 crore for FY2026, up approximately 19 percent from Rs. 28,339 crore in FY2025. Net profit for FY2026 stood at approximately Rs. 1,600 crore, a sharp recovery from an estimated Rs. 534 crore in FY2025, itself a year of uneven quarterly profitability. The March 2026 quarter individually registered an operating margin of 14 percent on revenues of Rs. 12,310 crore, its highest quarterly operating performance in several years driven by accelerated project execution as legacy orders moved towards completion.
Two caveats are worth registering. First, FY2026 earnings include other income of approximately Rs. 869 crore equivalent to roughly 54 percent of the year’s net profit. Stripping other income, the operating profit base of approximately Rs. 2,342 crore equates to a consolidated operating margin of 6.9 percent, acceptable for a capital goods PSU with a heavy mix of older legacy contracts but not yet the margin profile of a high-execution-quality player. Second, promoter holding entirely by the Government of India declined by 5 percent in the last quarter, a reduction that bears monitoring for future supply-side pressure on the stock.
The company’s five-year profit CAGR of 21 percent and current order book depth support the case for continued margin expansion as newer, more efficiently contracted projects displace legacy low-margin work. The Durgapur LNTP adds to that forward order base, anchoring a defined revenue stream from the power segment over the next four to five years of project execution.
Business Overview
Bharat Heavy Electricals Limited is India’s flagship engineering and manufacturing conglomerate, owned and controlled by the Government of India. The company designs, manufactures, erects, and commissions equipment across power generation, transmission, industrial processes, transportation, renewable energy, defence, and oil and gas. Listed on BSE (code: 500103) and NSE (symbol: BHEL), it reported consolidated revenues of Rs. 33,782 crore and net profit of approximately Rs. 1,600 crore for FY2026. The stock has risen approximately 86 percent from its 52-week low of Rs. 205.
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