BHEL rises over 5%
Bharat Heavy Electricals Ltd (BHEL) rose 5.50% to Rs. 421.40, a gain of Rs. 21.95 over its previous close of Rs. 399.45, as of 10:28 AM on November 4, 2026. The stock opened at Rs. 405 and touched an intraday high of Rs. 425.35. Trading volumes stood at 5.26 lakh shares against the two-week average of 3.98 lakh, with market capitalisation at Rs. 1.47 lakh crore. Market depth showed buy quantity of 3.27 lakh shares against sell quantity of 2.36 lakh, indicating buying support.
Trigger
- BHEL has reportedly secured four major thermal power project orders from Adani Power.
- Each project has a capacity of 1,600 MW, comprising two units of 800 MW each.
- Combined generation capacity across the four projects is 6,400 MW.
- Aggregate contract value is estimated at Rs. 20,000–28,000 crore, excluding GST.
- The Economic Times
- BHEL's existing order book stood at Rs. 2.58 lakh crore as of September 2026, up 17.3% YoY.
- Q2 FY27 revenue increased 24% YoY to Rs. 9,300 crore, while PAT rose 120% to Rs. 810 crore.
The biggest positive is the scale of the proposed contracts. At Rs. 20,000–28,000 crore, they represent approximately 8–11% of BHEL's September 2026 outstanding order book. However, the extent to which these contracts are incremental to the previously reported order book needs confirmation.
The development comes when BHEL's operating performance is already improving. Its Q2 FY27 revenue grew 24% YoY, EBITDA increased 69%, and net profit more than doubled. Rising execution volumes, coupled with a large order backlog, could support better capacity utilisation and operating leverage. The company has also approved a Rs. 500 crore investment to expand thermal and nuclear equipment manufacturing capacity at Haridwar.
The key caution remains execution and valuation. Large thermal power contracts are typically executed over several years and require substantial working capital. Delays, higher input costs and project-specific margin pressures can affect profitability. At a consolidated PE of 51.01 times and price-to-book of 5.97 times, the stock already reflects significant expectations of future earnings growth.