BHEL

What it is: BHEL Ltd is a Maharatna PSU and India’s largest heavy electrical equipment manufacturer, serving the power, industrial, railways, defence, and renewable sectors. Founded: 1964 Headquarters: New Delhi What BHEL Does Power equipment: Boilers, turbines, generators (thermal, hydro, nuclear) Industry & transmission: Transformers, motors, switchgear Railways & defence: Electric locomotives, propulsion systems Renewables & new areas: Solar equipment, EV-related components Services: EPC, spares, repairs & overhauls (high-margin annuity) How BHEL Makes Money EPC contracts and equipment supply Long lifecycle services & spares from large installed base Why Investors Track BHEL Direct beneficiary of India’s power capex revival Strong order inflows improve revenue visibility Turnaround leverage as utilisation rises Key Strengths Strategic national importance Massive installed base → recurring service revenue Visible order book during capex upcycles Key Risks Working-capital intensity and execution delays Margin pressure in competitive bids Dependence on government capex cycles