Adani Power Taps BHEL For Rs 6,500 Crore Thermal Power Expansion; Will Monday Market Reflect The Surge?

Adani Power has awarded a thermal power project worth Rs 6,500 crore to Bharat Heavy Electricals Limited (BHEL) for the supply of equipment for six thermal units of 800 MW, shared the Maharatna PSU in a BSE filing on Friday, June 27.

BHEL's share price will be in focus on Monday after the massive order win. The Maharatna PSU stock ended 0.21% lower at Rs 264.05 per share on BSE on Friday, with a market capitalisation of Rs 91,943.88 crore.

BHEL Bags Order By Adani Power

"Bharat Heavy Electricals Limited (BHEL) has received a Letter of Award (LoA) from Adani Power Ltd. (APL) for six (6) thermal units of 800 MW," read BHEL's BSE filing released on Friday. The Indian engineering and manufacturing company will manage the supply of equipment, ie steam turbine generator along with auxiliaries, and supervision of erection and commissioning of the equipment at the thermal units. The broad consideration of the order size is likely to be around Rs 6,500 crore (exclusing GST).

The company didn't provide information about the tenure of the order or didn't provide a timeline for the order's completion.

Execution of Order Remains Key

While the recent order from Adani Power is likely to boost the company's prospects and may have an impact on BHEL stock during Monday's trading session, the execution of the order will be the key for its long-term growth.

Commenting on BHEL's weak order execution in the March quarter of the financial year 2024-25 (FY25), Kotak Institutional Securities in its report stated, " BHEL reported a 7%/19% yoy increase in order inflows for 4Q/FY2025. The company won 14.6 GW of thermal power orders, a run-rate difficult to maintain in our assessment. Execution for the power segment in the year has been weak at 15% versus 17.5-18.0% over the past few years-8.1 GW of capacities commissioned/synchronised versus 7.2 GW last year."

The brokerage had earlier highlighted that BHEL's revenue growth outlook depends significantly on its ability to grow execution. BHEL's power segment accounts 80% of the order backlog. "The 4Q power segment's revenue print being flat yoy is concerning in this context," added Kotak Institutional Equities in its report. BHEL reported a sequential increase in its net profit to Rs 504.05 crore. Whereas, its revenue increased on a quarter on quarter basis to Rs 8,993.37 crore.

BHEL Share Price Trend

BHEL share price closed marginally lower at Rs 264.05 per share on BSE on Friday. It touched an intraday high mark of Rs 264.55 apiece and an intraday low mark of Rs 263.15 per share. The stock touched its 52-week low mark of Rs 335.4 per share on 9 July, 2024. The Maharatna PSU stock is recovering from its 176 per share touched on 3 March, 2025. The stock value has increased 7% year to date (YTD) and has surged around 32.55% in two years.

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