BHEL rallies 6% on securing large project works from Adani Power

As of September 30, 2026, BHEL's outstanding order book stood at ₹2.58 trillion. Brokerages are upbeat on the stock, with ICICI Securities pegging a target price of over ₹600 per share.

Bharat Heavy Electricals Limited (BHEL) share price movement

 

Bharat Heavy Electricals Limited (BHEL) share price rallied 6 per cent to ₹423.10 on the BSE in Wednesday’s intraday deals amid heavy volume after the state-owned company said it received orders from Adani Power for 4 projects of 2x800 MW each worth ₹28,000 crore.

 

At 09:52 AM, BHEL traded 5.7 per cent higher at ₹422.20 on the BSE, compared to a 0.56 per cent gain in the BSE Sensex. A combined 1.1 million shares changed hands in the first 40 minutes of trade on the NSE and BSE. The stock price of BHEL hit a record high of ₹463.60 on October 14, 2026. 

 

BHEL wins multiple orders from Adani Power

 

BHEL in an exchange filing today announced that the company received multiple orders from Adani Power for the supply of equipment (Boiler, Turbine and Generator along with auxiliaries) and agreed services for 4 projects of 2x800 MW each. The company said the 4 projects (contracts) are each valued between ₹5,000 crore and ₹7,000 crore, exclusive of GST.

 

BHEL, India’s largest engineering company, manufactures power, industrial and transportation equipment, including turbines, boilers, transformers and generators. The company is one of the largest engineering and manufacturing companies of its kind in India engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of economy. 

 

Meanwhile, as of September 30, 2026, BHEL's outstanding order book stood at ₹2.58 trillion. The company said the significant outstanding order book in non-thermal areas 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 ICICI Securities said this diversification, supported by ongoing investments in power generation, grid expansion, rail mobility and defence indigenisation, provides a strong platform for sustained execution over the medium term.

 

Brokerages upbeat on BHEL

 

Geojit Investments said in the Q2 result update that BHEL’s strong order book of ₹2.58 trillion provides healthy revenue visibility and is expected to drive robust execution-led growth, with revenue/EPS projected to register a 27 per cent/79 per cent compound annual growth rate (CAGR) over FY26-28.

 

Improving execution across power and industrial businesses, coupled with operating leverage and better fixed-cost absorption, is expected to support earnings before interest, tax, depreciation and amortization (EBITDA) margin expansion and drive return on equity (ROE) improvement from 6.2 per cent in FY26 to 15.6 per cent in FY28, the brokerage firm said.

 

“BHEL established engineering capabilities and diversified business portfolio reinforce its competitive positioning, while the resulting earnings transformation warrants a valuation re-rating. Therefore, we upgrade our rating to 'Buy', with a revised target price of ₹453 based on 2.9x FY28E P/S,” Geojit Investments said.

 

Analysts at ICICI Securities believe sustained execution of the record ₹2.58 trillion order book, better fixed-cost absorption and a rising contribution from higher-value businesses such as spares and services, transmission, nuclear and defence can support further profitability improvement. 

 

Operational progress remains encouraging, with 2,260 MW of capacity addition achieved in H1FY27 against the FY27 target of 4,790 MW, alongside improved receivable days of 94 versus 120 days a year ago. Continued execution discipline, timely billing and collections should support cash generation and the conversion of revenue growth into sustainable earnings; however, margin sustainability and working-capital efficiency remain key monitorables, the brokerage firm said.

 

“We expect the revenue and PAT to grow at a CAGR of 31 per cent and 95 per cent over FY26-FY28E. This will also improve ROCE from mid-single digit to ~17.5 per cent ROCE in FY28E. Hence, we rate the stock as 'Buy' with fair value of ₹605 (35x FY28E EPS),” the brokerage firm said in the Q2 result update. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.