Synopsis: Maharatna stock with 188 percent net profit growth in the recent quarter, and a 53 percent compounded return in the last five years has bagged an order from Hindalco Industries Ltd, with the order valued between Rs 1200- 1500 Crore.
The large-cap stock of a maharatna company serving sectors like power, transmission, renewable energy, oil & gas and more was in the spotlight after the company announced it had received an order from Hindalco Industries for the expansion of its aluminium facility.
With a market cap of Rs 94,904 Cr, Bharat Heavy Electricals Ltd saw its stock hit an intraday high of Rs 274 which is more than 2 percent higher than the previous close of Rs 268. The company stock has given a compounded return of 53 percent in the last three years.
News
Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent from Hindalco Industries Limited for the Aditya Expansion Project Phase II at its aluminium facility in Lapanga, Sambalpur, Odisha. The contract involves designing, engineering, supplying equipment, installation, commissioning, and performance acceptance testing for a 2 x 150 MW BTG package.
The order is a domestic tender valued at approximately Rs 1,200- 1,500 crore excluding GST and excludes civil work. Unit 1 is scheduled for commissioning within 35 months and Unit 2 within 37 months from the LOI date.
The Order Book
As of Q3FY26, the company’s order book stands at Rs. 2,22,800 Crore, with 20 percent are Industry orders including the exports, with the remaining 80 percent are Power orders. Talking specifically about Q2FY26, the company saw an order inflow of Rs 45,900 Crore, this also saw a similar pattern of 24 percent from Industry including the exports, and 76 percent from Power.
During the latest quarter of Q3 FY 2025- 26, the company secured several prominent orders, including EPC works for the 1×800 MW Darlipali STPP Stage-II, the E&M package for the 3×16 MW Chanju-III hydroelectric project, an EPC contract for a 265 TPH gas/oil-fired boiler from an oil refinery, and the supply of interconnecting transformers and 765 kV shunt reactors to transmission utilities and power plants.
Financials
Bharat Heavy Electricals Ltd (BHEL) is an integrated power plant equipment manufacturer engaged in the design, engineering, manufacturing, erection, commissioning, and servicing of products for sectors such as power, transmission, industry, transportation, renewable energy, oil & gas, and defence.
In the latest quarterly result the company has seen its revenue from operations increase by 16 percent YoY, from Rs 7,277 Cr in Q3FY25 to Rs 8,473 Cr in Q3FY26, while the QoQ increased by 13 percent from Rs 7,512 Cr. The net profits grew by 188 percent going from Rs 135 Cr in Q3FY25 to Rs 390 Cr in Q3FY26, while the QoQ increased by 4 percent from Q2FY26’s Rs 375 Cr.
The company has a 3 year sales CAGR of 10 percent, while the TTM is at 10 percent. The company’s 3 year profit CAGR is at 6 percent, while the TTM number is at 57 percent. While the company’s ROCE is still at 5 percent and a ROE of 2 percent.
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