Shares of a leading Maharatna PSU surged 3 percent after the company secured a significant Rs.11,800 crore EPC and civil contract from the Chhattisgarh Government. The contract involves the construction of a 2×660 MW supercritical thermal power plant at Hasdeo Thermal Power Station, marking a major milestone for the company and boosting investor confidence.
Price Movement
In Friday’s trading session, Bharat Heavy Electricals Limited’s (BHEL) share price reached an intraday high of Rs.221.30 per share, rising 3.5 percent from its previous close of Rs.213.98 apiece. The price has since retreated and closed at Rs.215.15 per share. Over the past five years, the stock has delivered over 1,000 percent returns.
Contract Specifications
Bharat Heavy Electricals Ltd (BHEL) has received a Letter of Intent (LOI) from the Chhattisgarh State Power Generation Company Limited (CSPGCL) on March 27, 2025, for an EPC package to establish a 2×660 MW Supercritical Thermal Power Plant at Hasdeo Thermal Power Station, located in Korba West, Chhattisgarh.
This is a significant domestic contract, awarded through competitive bidding, which involves multiple facets of the project. The scope includes the supply of supercritical equipment such as boilers, turbines, generators, and associated auxiliaries, as well as electrical, control and instrumentation, and balance of plant packages. Additionally, the contract covers the erection and commissioning works, along with civil works.
The total value of the contract is approximately Rs.11,800 crores, excluding taxes and duties. The project is expected to be operational within 60 months from the start date.
Order Book Details
As of September 30, 2024, Bharat Heavy Electricals Ltd (BHEL) has an outstanding order book valued at over Rs.1,60,000 crores. The order book is primarily divided into three sectors: Power, which constitutes the largest share at Rs.1,25,984 crores (79 percent); Industry, with orders amounting to Rs.30,682 crores (19 percent); and Export, contributing Rs.3,763 crores (2 percent). This strong order book reflects BHEL’s diverse project portfolio across key sectors.
Also read: PSU stock jumps after receiving ₹872 Cr order from RVNL for new project
International Presence
BHEL operates in approximately 90 countries across six continents. In FY24, exports contributed around 3 percent to its revenues, down from 19 percent in FY20.
Manufacturing Capabilities
The company operates 16 manufacturing units, two repair units, four regional offices, eight service centers, and 15 regional marketing centers. It represents 53 percent of India’s total installed conventional power capacity.
Financial Overview
In its recent financial update, Bharat Heavy Electricals Ltd reported consolidated revenue of Rs.7,277 crores for Q3 FY25, reflecting an increase of 32 percent compared to Rs.5,504 crores in Q3 FY24. Similarly, the company recorded a net profit of Rs.135 crores, rising 125 percent from Rs.60 crores posted during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 3.18 percent and a Return on Equity (ROE) of 1.84 percent. Its Price-to-Earnings (P/E) ratio stands at 143.93, higher than the industry average of 66.41. Furthermore, the company maintains a current ratio of 2.08, a debt-to-equity ratio of 0.38, and an Earnings Per Share (EPS) of Rs.1.49.
Written by – Siddesh S Raskar
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