Bharat Heavy Electricals received notices from the Bombay Stock Exchange and National Stock Exchange imposing a fine of ₹11,03,300 each for non-compliance with SEBI Listing Obligations and Disclosure Requirements regulations. The penalties relate to governance lapses during the quarter ending June 2026.

The company disclosed the receipt of notices dated August 25, 2026, citing violations of specific clauses under the SEBI (LODR) Regulations, 2015. The fines are inclusive of GST.

Governance Lapses

The non-compliances stemmed from issues in the composition of the Board and various statutory committees as on June 30, 2026. Key regulatory breaches included:

• Board Composition: Violation of Regulation 17(1), as the number of Non-executive Directors or Independent Directors was less than 50% of the actual Board strength. This included a failure to have at least one independent woman director.
• Committee Composition: Non-compliance with Regulations 18, 19, 20, and 21 regarding the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee respectively, effective from June 2, 2026.

During the reported quarter, BHEL had only one Independent Director on its Board up to June 1, 2026. From June 2, 2026, there were no Independent Directors on the Board.

Waiver Proposal

BHEL stated it is proposing to seek a waiver of the fines levied by the stock exchanges. The company cited the Standard Operating Procedure circular issued by the exchanges as the basis for this request.

As a Government Company, BHEL noted that its Directors, including Independent Directors, are appointed by the Government of India. The company confirmed it is regularly engaging with the government to ensure the appointment of the requisite number of Independent Directors to achieve compliance with the regulations.

Bharat Heavy Electricals Limited has signed a Strategic Collaboration Agreement with Hystar AS, a Norwegian company, for Proton Exchange Membrane (PEM) electrolyser systems. The agreement, disclosed in a filing with stock exchanges on August 13, 2026, is designed to advance the company's green hydrogen initiatives by enabling phased indigenization and local manufacturing of these systems in India.

Agreement highlights

The key details of the strategic agreement are as follows:

PEM electrolysers are a critical technology in the production of green hydrogen, using electricity to split water into hydrogen and oxygen through a proton exchange membrane. This collaboration positions Bharat Heavy Electricals to access advanced electrolyser technology from Hystar AS, a specialist in this domain.

Strategic significance

The agreement underscores Bharat Heavy Electricals' focus on clean energy solutions, with green hydrogen emerging as a key area of interest in India's energy transition. By partnering with Hystar AS, Bharat Heavy Electricals aims to strengthen its capabilities in the green hydrogen value chain through the deployment of PEM electrolyser systems.

Notably, this deal complements a separate strategic tie-up Bharat Heavy Electricals entered into with thyssenkrupp nucera India Private Limited in July 2026 for alkaline electrolyser systems. This dual approach strengthens the company's position as one of the few Indian players capable of offering both alkaline and PEM electrolyser solutions to serve the country's emerging green hydrogen market.

The collaboration is expected to enhance Bharat Heavy Electricals' project execution capabilities for green hydrogen projects in India. It also aims to contribute to the National Green Hydrogen Mission and support the Government of India's Make in India initiative.