Rs 20,000–28,000 Crore Order from Adani Power: This Maharatna PSU Stock Jumps Nearly 6%

Bharat Heavy Electricals Ltd. is entering a period of elevated power-sector execution, backed by a record Order Book of Rs 2,39,057 crore as at March 31, 2026. The state-run engineering company has now received four domestic contracts from Adani Power Ltd. for thermal power projects, with an aggregate indicated value of Rs 20,000 crore to Rs 28,000 crore excluding Goods and Services Tax.

Each contract covers a project comprising two 800 megawatt units and is valued between Rs 5,000 crore and Rs 7,000 crore, excluding GST. Together, the orders relate to eight 800 MW units, or 6,400 MW of generation capacity.

BHEL will supply boiler, turbine and generator equipment, along with auxiliaries and agreed services. These packages sit squarely within its core Power segment, which generated consolidated external revenue of Rs 25,406.71 crore in FY2025-26, up 21.3 per cent from the previous year.

The indicated value of the new contracts is equivalent to about 59 per cent to 83 per cent of BHEL’s FY2025-26 consolidated revenue of Rs 33,782.18 crore. It also represents roughly 8 per cent to 12 per cent of the company’s outstanding order book at the end of March 2026, underlining the scale of the order addition even though revenue will be recognised over the execution cycle.

The contracts add to BHEL’s recent thermal power order momentum. Its Power segment accounted for 81 per cent of the order book as at March 31, 2026, reflecting the company’s continued dependence on domestic generation projects. BHEL said the contracts are domestic orders and that neither its promoter nor its group companies have an interest in Adani Power. The company classified the transactions as not being related-party transactions.

The order win follows a stronger operating performance in the September 2026 quarter, when net sales rose 23.81 per cent YoY to Rs 9,300.35 crore and profit after tax more than doubled to Rs 802.48 crore. The commercial significance of the new orders will depend on timely engineering, manufacturing, site execution and milestone-based collections.

At 9:35 a.m. on November 4, 2026, BHEL shares were trading at Rs 415.15, up 3.93 per cent from the previous close. The stock was about 10 per cent below its 52-week high of Rs 463.50, while it had gained 70.27 per cent over one year against a 5.73 per cent decline in the BSE 500 over the same period. BHEL’s market capitalisation stood at about Rs 1,39,091 crore.

What This Means for Investors

The Adani Power orders strengthen BHEL’s revenue visibility in its core thermal equipment business and reinforce the continuing recovery in domestic power-sector capital expenditure. Their scale is meaningful relative to both annual revenue and the existing order book. The contracts could support manufacturing utilisation and Power-segment execution over several years, particularly as BHEL has been working to improve capacity use, procurement discipline and project delivery.

The development is supportive for the business outlook, but it also increases the importance of execution quality and customer concentration. Adani Group was already among customers contributing more than 10 per cent of BHEL’s FY2025-26 revenue. Large, multi-year contracts can improve revenue visibility, though margins and cash conversion will depend on input costs, vendor availability, project milestones and collections. At 48.32 times trailing 12-month price-to-earnings and 28.27 times enterprise value to trailing 12-month earnings before interest, tax, depreciation and amortisation, the stock continues to reflect substantial expectations of sustained earnings improvement.

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