Shares of Bharat Heavy Electricals Ltd. (BHEL) gained 3.5% in intraday trading on Wednesday, November 11, following the company's latest contract win. According to an exchange filing, BHEL has received a Notification of Award (NOA) from Power Grid Corporation of India for setting up two synchronous condensers at Kalyanpur in Gujarat. The project involves design, engineering, manufacturing, supply, erection, testing and commissioning of two +300/-200 MVAR synchronous condensers for the transmission system associated with power integration from renewable energy projects in the Jam Khambhaliya Renewable Energy Zone (REZ) in Gujarat. The project is valued between ₹600 crore to ₹900 crore, excluding Goods and Services Tax (GST), and is scheduled to be executed over 35 months. This contract win enhances BHEL's position in grid stabilization equipment associated with India's expanding renewable energy transmission corridors, with the equipment supporting dynamic reactive power support and inertia to maintain grid stability across large renewable energy zones.
The latest contract represents BHEL's second Power Grid order in recent days, coming days after the company disclosed another order in the same value range for setting up two synchronous condensers at the Barmer-II High Voltage Direct Current (HVDC) Terminal Station in Rajasthan. As reported by CNBC TV18, the November 7 order also involves two units with a capacity of +300/-200 MVAR each, with BHEL undertaking design, engineering, manufacturing, supply, erection, testing and commissioning. The execution period for this contract is 44 months. Securing high-specification equipment contracts like synchronous condensers diversifies BHEL's revenue stream beyond traditional heavy thermal generation equipment, with the ₹600 crore to ₹900 crore order strengthening the company's execution pipeline over the next 35 months.
Separately, BHEL has received an adjudication order from the Telangana Commercial Tax Department dropping the entire ₹207.26 crore GST demand raised against the company for the financial year 2022-23. According to CNBC TV18, the order dated November 7, 2026, was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, and communicated to BHEL on November 9. The demand, along with consequential interest and penalty, has been dropped, with BHEL stating there would be no financial impact on the company and no further action was required. The FY23 demand was part of show-cause notices issued in September 2025, covering three financial years and amounting to ₹586.43 crore. On September 14, 2026, BHEL's board approved a further equity investment of ₹65 crore in its joint venture NTPC BHEL Power Projects Private Limited, demonstrating continued strategic investments in growth opportunities.
BHEL reported robust financial results for the September quarter, with revenue of ₹9,300 crore marking a 23.8% increase from the corresponding period last year and marginally ahead of the CNBC-TV18 poll estimate of ₹9,236 crore. As reported by CNBC TV18, net profit more than doubled year-on-year to ₹810 crore, compared with ₹368 crore in the year-ago quarter, significantly higher than the poll estimate of ₹654.4 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 77% to ₹1,026 crore, beating the estimate of ₹881 crore, with EBITDA margin expanding by 330 basis points to 11% compared with 7.7% in the corresponding quarter last year and the poll estimate of 9.5%.
Shares of BHEL are trading 2.18% higher at ₹432 per share on NSE as of 01:46 AM, with intraday gains reaching 3.5% to touch the day's high at ₹437 per share. According to CNBC TV18, the stock is up 48% so far this year, reflecting strong investor confidence in the company's order wins and financial performance. The company's shares have benefited from the back-to-back transmission infrastructure contracts and the resolution of major tax disputes, positioning BHEL well for continued growth in the renewable energy sector. Technical analyst Vipin Kumar from Globe Capital Market notes that BHEL is consolidating in a slightly upward-sloping range above its key long-term and short-term moving averages, with immediate supports at ₹380 and resistances around ₹465 spot levels since May 2026. The overall chart structure remains positive as long as the stock trades above the support zone, with analysts suggesting a "buy on dips" trading approach for targets close to the upper band of the range.
