Synopsis: BHEL's stock soared 4% to Rs308 after securing a Rs13,300 crore contract for a 1600 MW thermal power plant in Jharkhand, reflecting the company's significant market achievements and expanding focus on the defense sector.
Shares of Bharat Heavy Electricals Limited (BHEL) experienced a 4% increase, reaching Rs308, after the company won a substantial contract worth Rs13,300 crore to construct a 1600 MW thermal power plant in Koderma, Jharkhand.
This contract, finalized by Damodar Valley Corporation (DVC) on June 26, 2024, aligns with the central government's objective to enhance the nation's energy security. The project will significantly boost DVC's thermal generation capacity to 8140 MW by 2030, providing considerable economic benefits to the local community.
BHEL has secured multiple significant orders in FY24, reflecting its strong market presence. Noteworthy contracts include EPC orders for Yamuna Nagar, Lara Super Critical Power Plant, and Raigad Super Critical Power Plant from the Adani Group.
In addition to these achievements, BHEL has expanded its focus on the defense sector. The company received orders for 80 Vande Bharat trains, with deliveries starting in June 2025, and 20 super rapid gun mounts for naval ships. A significant opportunity in the air defense gun sector has also emerged, with BHEL developing a prototype in collaboration with an original equipment manufacturer (OEM). The company has partnered with a European firm for marine gas turbines, with bid results anticipated in early FY26.
To ensure timely execution of power projects, BHEL is actively onboarding new vendors while retaining existing ones. Power consumption in India has grown by 8%–10% in FY 22–24. With India's economic and manufacturing sectors expected to grow significantly, there are concerns about a potential peak power shortage.
In response, the government plans to add 80 GW of thermal capacity by 2032. Currently, 30 GW is under construction, and an additional 44–45 GW worth of projects are expected to be awarded by FY27, leading to over 10 GW of annual tendering over the next three years.
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