BHEL’s significant order win boosts stock value
Shares of Bharat Heavy Electricals Limited (BHEL) surged by 3% on June 30, 2025, reaching a six-month high of ₹272 per share. This price jump came after the state-run engineering giant announced it had secured a major order worth ₹6,500 crore from Adani Power. The order pertains to the supply and commissioning of equipment for six 800 MW thermal power units, marking a key milestone for BHEL.
The Significance of the ₹6,500 Crore Order
The Letter of Award (LoA) from Adani Power was officially confirmed in an exchange filing made by BHEL on June 27, 2025. According to the filing, BHEL will provide steam turbine generators and other auxiliaries, alongside supervising the erection and commissioning of the thermal units. This order is valued at approximately ₹6,500 crore, excluding GST. The project will be executed based on Adani Power’s specific requirements, solidifying BHEL’s foothold in the thermal equipment manufacturing space.
The deal is part of Adani Power’s expansion to enhance its power generation capabilities and highlights BHEL’s strong position in India’s energy infrastructure sector. This is especially crucial as BHEL continues to tap into large-scale projects, which bolster its long-term growth potential.
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BHEL share performance: A closer look at the numbers
As of June 30, BHEL’s stock opened at ₹272, marking its highest point in nearly six months. This increase is significant for BHEL, as it has had a rough patch over the past year, with its share price falling by about 12% over the last 12 months. However, after the announcement, BHEL’s share price has jumped around 16% in the last six months, showing a solid recovery trajectory.
Here’s a quick breakdown of BHEL’s performance in recent times:
| Metric | Value |
| Opening Share Price (June 30) | ₹272 |
| 6-month price change | +16% |
| 1-year price change | -12% |
| Q4 FY25 revenue | ₹8,993.37 crore |
| Q4 FY25 net profit | ₹504.05 crore |
| Order Value from Adani | ₹6,500 crore |
Despite the 12% drop in the past year, BHEL’s recovery from its 52-week low (reached in March 2025) reflects investor confidence in the company’s future growth prospects, especially in the power generation and infrastructure sectors.
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How the order impacts BHEL’s future
The ₹6,500 crore order represents a crucial step forward for BHEL, not just in terms of revenue but also in strengthening its market position. The deal involves the supply of equipment for six thermal power units, which are expected to have a combined capacity of 4,800 MW. For BHEL, this translates to a significant increase in its order book and will contribute to the company’s visibility in the thermal power generation sector.
As the Indian government focuses on expanding power generation capacity to meet growing demand, companies like BHEL are well-positioned to capture more large-scale contracts. Moreover, this deal with Adani Power is a domestic project, which means it strengthens BHEL’s operational base within India, potentially leading to more future opportunities from both public and private sector clients.
BHEL’s financial results: Positive but mixed signals
In its Q4 FY25 results, BHEL reported a 4% year-on-year (YoY) rise in its net profit, standing at ₹504.05 crore, compared to ₹484.36 crore in Q4 FY24. This increase in profits comes despite a slight dip in some financial metrics. The revenue from operations for the quarter was ₹8,993.37 crore, up by 8.9% compared to the previous year. The company also declared a ₹0.50 per share dividend for FY25.
However, despite these positive numbers, there were some concerns raised by analysts. PL Capital downgraded BHEL’s stock to ‘hold’ after the Q4 results, citing a cautious outlook for the company’s near-term performance. On the other hand, ICICI Securities maintained a ‘buy’ rating with a target price of ₹324, suggesting optimism about BHEL’s long-term growth.
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Will BHEL share price continue to rise?
Given the robust order book and the strong performance of BHEL in recent quarters, there are positive indications that the company’s stock price may continue its upward trajectory. Analysts are optimistic about the long-term potential of BHEL, especially as it secures more high-value contracts like the one from Adani Power.
With the ₹6,500 crore Adani order in the pipeline, BHEL’s growth outlook seems promising. However, investors should keep an eye on the company’s ability to manage its order execution and cost controls. Any delays or project execution challenges could potentially impact its performance, but for now, the future looks relatively bright.
Conclusion: BHEL’s recovery story
In conclusion, BHEL’s share price surge after winning the ₹6,500 crore order from Adani Power signifies the company’s ability to secure large, high-value contracts despite challenges in the broader market. The recovery in share price, alongside positive earnings reports, signals a potential growth phase for BHEL, provided it continues to execute on its ambitious project pipeline.
The market’s optimism, fuelled by BHEL’s strong order book and its dominant role in India’s power sector, suggests that its stock could continue to see positive momentum, with analysts anticipating further growth in the coming months. As always, investors should stay updated on the company’s progress in executing key projects to gauge the sustainability of this bullish trend.
