BHEL shares rise 3% on inking 10-year deal with Horizon Fuel Cell

Bharat Heavy Electricals shares rose 3 per cent after it signed a long-term agreement with Singapore-based Horizon Fuel Cell Technologies Pte Ltd

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Shares of Bharat Heavy Electricals (BHEL) rose over 3 per cent after the company signed a long-term exclusive agreement with Horizon Fuel Cell Technologies Pte Ltd, Singapore, to foray into a new market. 

 

The heavy electrical equipment maker's stock rose as much as 3.01 per cent during the day to ₹218.7 per share, the biggest intraday gain since August 5 this year. The stock pared gains to trade 2.6 per cent higher at ₹217.7 apiece, compared to a 0.46 per cent advance in Nifty 50 as of 1:37 PM. 

 

Shares of the company rose for the second straight session and currently trade at 2.4 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 22.4 per cent this year, compared to a 5 per cent advance in the benchmark Nifty 50. BHEL has a total market capitalisation of ₹75,891.57 crore.

 

BHEL inks MoU with Horizon Fuel Cell

The company, in an exchange filing on Friday, said that it entered into a long-term exclusive memorandum of understanding (MoU) with Horizon Fuel Cell Technologies Pte Ltd, Singapore. The partnership is aimed at enabling BHEL's entry into a new market segment, the filing said. 

 

Under this 10-year agreement, the two companies will collaborate on the development of hydrogen fuel cell-based rolling stock, with a focus on business sharing and joint operations.

 

Earlier this month, the company signed a License Agreement for Transfer of Technology (LAToT) with Defence Metallurgical Research Laboratory (DMRL), Hyderabad, a research laboratory of the DRDO. The agreement allows BHEL to manufacture fused silica radar domes using advanced pressing and sintering technology. 

 

BHEL Q1 results

In the June quarter of FY26, BHEL posted consolidated revenue from operations of ₹548.69 crore, broadly flat compared to ₹548.49 crore in the year-ago period. The company's net loss widened to ₹455.5 crore against ₹211.4 crore in the Q1FY25, primarily due to higher expenses. 

 

The company's expenses rose around 7 per cent to ₹6,280 crore, driven by a 10.8 per cent increase in the raw materials and services costs. 

 

Bharat Heavy Electricals is an integrated power plant equipment manufacturer engaged in the design, engineering, manufacturing, erection, testing, commissioning, and servicing of a diverse range of products and systems.