Synopsis:
BHEL accepted an LOI from MB Power to supply Boiler, Turbine, and Generator for a 1×800 MW project worth ₹2,600 crore, strengthening its power sector presence.
This PSU power stock, engaged in designing, engineering, manufacturing, and servicing products across power, industry, transportation, defence, aerospace, oil & gas, and emerging technologies, jumped 2 percent after receiving a contract worth Rs. 2,600 crore from MB Power (Madhya Pradesh) Limited for the supply of equipment (Boiler, Turbine, Generator).
With a market capitalization of Rs. 75,839.34 crores, the share of Bharat Heavy Electricals Limited has reached an intraday high of Rs. 222.20 per equity share, rising nearly 2.44 percent from its previous day’s close price of Rs. 216.90. Since then, the stock has retreated and is currently trading at Rs. 217.80 per equity share.
What is the News?
Bharat Heavy Electricals Limited (BHEL) has received and accepted a Letter of Intent (LOI) from MB Power (Madhya Pradesh) Limited. The order is for supplying major power plant equipment like the Boiler, Turbine, and Generator for the upcoming 1×800 MW Anuppur Thermal Power Project in Madhya Pradesh.
The equipment will be manufactured at BHEL’s Trichy and Haridwar plants, and the supply is scheduled to be completed within 58 months. The contract is valued at around Rs. 2,600 crore. This project will further strengthen BHEL’s position in the power sector and contribute to cleaner and more efficient energy generation.
Order Book
As of 31st March 2025, BHEL’s outstanding order book stood at a record Rs. 196,328 crore. Out of this, the Power sector contributed 80 percent (Rs. 157,922 crore), followed by Industry at 18 percent (Rs. 34,826 crore) and Exports at 2 percent (Rs. 3,580 crore).
In FY25, BHEL achieved its highest-ever yearly order booking of Rs. 92,535 crore, which is higher compared to Rs. 77,907 crore in FY24. For the fourth quarter, the company booked orders worth Rs. 44,588 crore in FY25 against Rs. 41,859 crore in FY24. This growth highlights the company’s strong performance and rising demand for its products.
Company Overview
Bharat Heavy Electricals Limited was established in 1964 and is headquartered in New Delhi, India. The company is a central public sector undertaking owned by the Government of India, operating under the Ministry of Heavy Industries.
Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing enterprise in the energy and infrastructure sectors and serves as the leading manufacturer of power equipment in the country. BHEL has 16 manufacturing units, 2 repair units, 4 regional offices, 8 service centers, and 15 regional marketing centers spread throughout India.
The company specializes in the design, engineering, manufacturing, construction, testing, commissioning, and servicing of products and systems across power generation, transmission, industry, transportation, defence, aerospace, and oil & gas. It is also expanding into new areas like battery storage and electric vehicle chargers, supporting India’s infrastructure and clean energy growth.
Recent quarter results
Coming into financial highlights, Bharat Heavy Electricals Limited’s revenue has increased from Rs. 5,485 crore in Q1 FY25 to Rs. 5,487 crore in Q1 FY26, which has grown by 0.01 percent. The net loss has increased from Rs. 211 crore in Q1 FY25 to Rs. 456 crore in Q1 FY26. Bharat Heavy Electricals Limited’s revenue has grown at a CAGR of 10.14 percent over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 4.87 percent and 2.12 percent, respectively. Bharat Heavy Electricals Limited has an earnings per share (EPS) of Rs. 1.53, and its debt-to-equity ratio is 0.36x.
Written By – Nikhil Naik
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