Bharat Heavy Electricals Limited (BHEL) has clinched a significant contract from NTPC Limited for the 1x800MW Darlipali Supercritical Thermal Power Project Stage-II. The Engineering, Procurement, and Construction (EPC) package, valued at over Rs 6,650.00 crore (excluding GST), marks a substantial development in India's power sector.

Contract Details

Scope of Work

The comprehensive EPC package encompasses:

• Design and engineering
• Equipment supply
• Erection and commissioning
• Civil works

This all-encompassing approach underscores BHEL's capabilities in handling large-scale power projects.

Strategic Implications

The contract win reinforces BHEL's position in India's power sector. As both BHEL and NTPC are Central Public Sector Enterprises, this collaboration highlights the synergy within India's public sector units in driving critical infrastructure projects.

Project Timeline

BHEL received the Notification of Award on November 6, 2025, setting the clock for the 48-month completion deadline. This timeline emphasizes the urgency and importance of the project in meeting India's growing energy demands.

Market Impact

This substantial contract is likely to bolster BHEL's order book and potentially impact its long-term financial outlook. Investors and market analysts will be keenly watching the execution of this project, given its scale and strategic importance.

The Darlipali project represents a continuation of India's commitment to expanding its power generation capacity using advanced supercritical technology. As the project unfolds, it will be crucial to monitor its progress and its impact on both BHEL's performance and India's energy landscape.

Bharat Heavy Electricals Limited (BHEL), a prominent player in India's heavy electrical equipment sector, has released its unaudited financial results for the second quarter and first half of the fiscal year 2025-26. The company's performance shows a mixed picture, with notable revenue growth accompanied by persistent losses.

Revenue Surge Amidst Challenges

BHEL demonstrated strong top-line growth in Q2 FY26, with revenue climbing to ₹7,511.80 crore, marking a significant increase from ₹6,564.10 crore in the corresponding quarter of the previous year. This 14.4% year-on-year growth indicates improved business activity and order execution.

For the half-year period, the company's revenue performance was even more impressive:

Profitability Challenges Persist

Despite the robust revenue growth, BHEL continues to grapple with profitability issues:

While the company has managed to narrow its losses compared to the previous year, the persistent red ink on its bottom line remains a concern for investors and stakeholders.

Capital Structure and Joint Ventures

BHEL's paid-up equity share capital remained stable at ₹696.41 crore. The company continues to operate several joint ventures, including:

• BHEL-GE Gas Turbine Services
• Raichur Power Corporation
• NTPC-BHEL Power Projects
• Power Plant Performance Improvements
• Bharat Coal Gasification and Chemicals Limited

These partnerships may play a crucial role in BHEL's future growth strategies and diversification efforts.

Looking Ahead

As BHEL navigates through challenging market conditions, the company's ability to sustain revenue growth while addressing profitability concerns will be crucial. Stakeholders will be keenly watching for signs of a turnaround in the coming quarters, particularly in light of the government's push for infrastructure development and the potential opportunities in the power and manufacturing sectors.

The company's diverse joint ventures and its established position in the heavy electrical equipment market could provide avenues for future growth and profitability improvement. However, BHEL will need to focus on operational efficiency and cost management to translate its revenue gains into bottom-line growth.

As the fiscal year progresses, BHEL's performance will remain under scrutiny, with investors and industry observers closely monitoring its financial health and strategic initiatives.