BHEL shares rallied 6% to ₹424 on Wednesday's trading session, following the announcement of major orders from Adani Power. According to Business Standard, the stock rose as much as 6.3%, the most in six months, after the announcement. The shares have gained 47% this year, sharply outperforming the benchmark Nifty 50 Index, which is down 9%. The strong performance reflects positive investor sentiment toward the significant contract wins and increased private-sector spending on new capacity.
The contracts, valued at ₹5,000 crore–₹7,000 crore apiece, translate into a total estimated order value of ₹20,000 crore–₹28,000 crore, excluding GST. As per the company's regulatory filing, these contracts involve the supply of critical power generation equipment, including boilers, turbines, generators and their associated auxiliary systems. BHEL will also provide agreed services related to the equipment installations as part of the contractual arrangements. The contracts cover four power projects, each comprising two units of 800 megawatts (MW), taking the combined generation capacity covered by the contracts to 6,400 MW. Each of the 4 projects was valued at between ₹5,000 crore and ₹7,000 crore, according to the regulatory filing on Wednesday.
BHEL delivered exceptional Q2FY27 results with revenue from operations rising 23.81% to ₹9,300 crore from ₹7,511.8 crore in the same quarter the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) jumped 76.4% to ₹1,025.8 crore up from ₹581.46 crore in the year ago period. The EBITDA margin stood at 11% compared to 7.7% in the year ago period, while Profit After Tax (PAT) surged 120% to ₹809 crore compared to ₹368 crore in the year ago period. The company's Industry segment revenue stood at ₹2,662.5 crore, a 45% jump from ₹1,836.2 crore reported in the same quarter the previous year, while power segment revenue stood at ₹6,637.9 crore, a 17% increase from the ₹5,676 crore it generated in the same quarter last year.
As of September 30, 2026, BHEL's outstanding order book stood at ₹2.57 lakh crore, providing substantial revenue visibility for future execution. According to CNBC TV18, the company secured orders worth ₹30,000 crore in the first half of FY27, with order inflows in Q2FY27 at ₹4,000 crore, down from ₹26,700 crore in Q1FY27 and ₹30,000 crore in Q4FY26. The diversified order book includes ₹16,400 crore from transportation, ₹13,600 crore from transmission, ₹12,800 crore from nuclear, ₹9,000 crore from coal gasification and ₹7,300 crore from defence. Analysts at IIFL Institutional Equities have raised earnings estimates for the next two years by around 20% to 25% following the better-than-expected Q2 results. The brokerage expects BHEL to be selective in thermal power orders due to execution challenges, but anticipates improved order inflows in the second half supported by opportunities in railways and other segments.
