BHEL Secures Rs 6,500 Crore Contract from Adani Power, Order Book Soars to Rs 1.96 Lakh Crore
Bharat Heavy Electricals Limited (BHEL) has added a significant feather to its cap by securing a Rs 6,500 crore contract from Adani Power, marking a major milestone in India’s power infrastructure landscape. The BHEL Adani Power contract entails the supply and supervision of six thermal power units of 800 MW each, underlining BHEL’s engineering expertise and reinforcing its leadership in the heavy electrical equipment sector.
The Letter of Award (LoA) from Adani Power covers the delivery of advanced steam turbine generators and associated auxiliaries. BHEL will also oversee the erection and commissioning of the thermal units, making it a turnkey engagement that further cements its position as a trusted public sector partner in India’s energy development. The value of the contract, approximately Rs 6,500 crore (excluding GST), is one of the largest single orders for BHEL in recent times.
Stronger Position in Power Equipment Manufacturing
This new project boosts BHEL’s already dominant presence in the conventional power generation space. The company contributes to nearly 53% of India's installed conventional power generation capacity, underlining its critical role in the country’s energy sector. The deal comes at a time when India's electricity demand is rising, driven by industrial growth and a push for infrastructure expansion.
BHEL, backed by the Government of India and key institutional investors like the Life Insurance Corporation of India (LIC), continues to focus on innovation and diversification. With a market capitalisation of Rs 92,135 crore, it remains a Large-Cap PSU that has consistently evolved with changing energy demands. Its foray into coal gasification and hydrogen technology signifies its shift toward clean and sustainable energy solutions.
Financial Overview and Stock Performance
As of June 27, 2025, BHEL’s share is trading at Rs 264.05 on the domestic bourses. Although the stock is down 10.55% over the past year, it has delivered a staggering 475.84% return over the last three years, showcasing investor confidence in its long-term potential. The stock hit a 52-week high of Rs 329.25 and a low of Rs 178.90, highlighting its volatility amid sectoral challenges.
With a Price-Earnings (PE) ratio of 192, BHEL trades at a premium, which some analysts interpret as a reflection of its growth prospects and strategic project wins. The company has announced July 11, 2025, as the record date for its final dividend of Rs 0.50 per share, signaling a stable dividend policy.
Expanding Order Book and Sectoral Reach
BHEL’s total order book now stands at an impressive Rs 1,96,328 crore, a figure that reflects both domestic and international confidence in its capabilities. The company has received orders from nearly 90 countries, and its global footprint continues to expand through strategic partnerships and technology collaborations. Domestically, its order book includes multiple large-scale projects, both in public and private sectors.
The company operates 16 manufacturing units and maintains a robust R&D infrastructure, enabling it to maintain quality standards and pursue continuous innovation. In the first quarter of FY25, the power segment accounted for 79% of BHEL’s total revenues, reaffirming its importance in the company’s portfolio. Other key sectors include transportation, defence, industrial automation, and renewable energy, where BHEL continues to build competencies.
Strong Institutional Backing and Ownership
BHEL enjoys solid backing from major stakeholders. As of March 2025, the President of India holds a 63.17% stake, while LIC holds 6.72%, reflecting institutional trust and long-term strategic interest. These high institutional holdings provide stability and affirm BHEL’s reputation as a reliable public sector enterprise.
The company’s latest contract win from Adani Power will further strengthen investor confidence, potentially opening up more opportunities in the private sector. It also demonstrates BHEL’s ability to deliver large-scale turnkey solutions in a competitive environment.
Future Outlook and Strategic Focus
Going forward, BHEL is focused on increasing its capacity utilization, investing in cleaner energy technologies, and expanding into high-growth sectors such as nuclear, solar, wind, and hydrogen-based power systems. Its leadership in coal-based thermal power plants remains unchallenged, but the company is proactively transforming its portfolio to meet India’s clean energy targets.
The Rs 6,500 crore deal from Adani Power is expected to be a revenue and margin booster for the company over the next few quarters. It aligns with the broader national agenda of strengthening India’s energy independence while leveraging local manufacturing capabilities under the Aatmanirbhar Bharat initiative.
Conclusion
The BHEL Adani Power contract comes at a time when India’s infrastructure sector is witnessing robust activity. With a fast-growing order book, strong institutional support, and a diversified business model, BHEL is well-positioned to play a central role in the country’s power and infrastructure development journey. While short-term stock movements remain volatile, the long-term fundamentals of the company appear strong, backed by strategic project wins and policy tailwinds.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.
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