Execution pickup likely to translate into further gains for BHEL's stock

As the only EPC major in the thermal projects space, Bharat Heavy Electricals (BHEL) has a growing order book. There’s an estimated 15 gigawatt (GW) of thermal capacity under tendering, and 30GW at the clearances stage. Given improved execution, BHEL could improve profitability from the third quarter of financial year 2025 (Q3FY25) and deliver annual growth of 34 per cent in revenues and 150 per cent in operating profit over FY24-26.

Despite the green focus, the government is aiming to add 93GW of thermal power capacity and BHEL is the only bidder across all tenders. Other prospective