Rs 2,04,375 crore order book: Heavy electrical equipment company receives order worth Rs 22.87 crore from South Western Railway, Indian Railways

Bharat Heavy Electricals Limited (BHEL) has been awarded a domestic contract worth Rs 22.87 crore by Indian Railways (South Western Railway) to design, develop, supply, install, and commission on-board and trackside KAVACH equipment. KAVACH is an indigenous Automatic Train Protection (ATP) system designed to prevent collisions and enhance railway safety by automatically applying brakes if a driver fails to do so. The equipment will be manufactured at BHEL's Bengaluru plant and installed in locomotives and at various locations, including stations, level crossings, and signalling points. The project is expected to be completed within 18 months from the date of the Letter of Intent. This order reinforces BHEL's role as a key supplier for India's railway modernisation initiatives.

Earlier, the company signed a long-term exclusive Memorandum of Understanding (MoU) with Horizon Fuel Cell Technologies Pte Ltd, Singapore. This agreement focuses on developing Hydrogen Fuel Cell-Based Rolling Stock for the domestic market. The partnership grants BHEL an exclusive arrangement for ten years, intending to create and enter a new market segment for both companies.

About the Company

Bharat Heavy Electricals Ltd (BHEL), a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering, and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth. BHEL Limited manufactures various power plant equipment.

Results: According to the Quarterly Results (Q1FY26), the company reported a revenue of Rs 5,487 crore, an EBITDA loss of Rs 352 crore, a Loss before Tax of Rs 607 crore, and a net loss of Rs 455 crore. In its annual results, the net sales increased by 19 per cent to Rs 28,339 crore and net profit increased by 97 per cent to Rs 513 crore in FY25 compared to FY24.

The company has a market cap of over Rs 80,000 crore. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.88 per cent as of June 2025. The company’s order book stands at Rs 2,04,375 crore and the stock is up by 32.4 per cent from its 52-week low of Rs 176 per share.

Disclaimer: The article is for informational purposes only and not investment advice.