BHEL Ignites! 52-Week High Fueled by ₹6650 Cr NTPC Deal & Explosive Q2 Results!

Bharat Heavy Electricals Limited (BHEL) experienced a significant surge in its share price, hitting a 52-week high of ₹273.20 on the BSE, marking a 4% gain during intra-day trade. This upward momentum has seen the stock climb 18% over the past 10 trading days.

A major catalyst for this performance is the ₹6,650 crore Engineering, Procurement, and Construction (EPC) contract awarded by NTPC Limited for setting up the 1x800 MW Darlipali Supercritical Thermal Power Project (Stage-II) in Odisha. This project is slated for completion within 48 months.

Financially, BHEL reported robust Q2 FY26 results, turning profitable. Revenue increased by 14% year-on-year to ₹7,512 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) more than doubled to ₹580 crore, and profit after tax surged 3.5 times year-on-year to ₹368 crore. The company's total order book now stands at ₹2.2 trillion, with 80% attributed to the Power segment. Additionally, BHEL received its first order for the Kavach system from Indian Railways.

Brokerage firms are optimistic. ICICI Securities highlighted the NTPC contract's positive impact on capacity utilization and order inflows. JM Financial Institutional Securities expects BHEL's execution to accelerate from Q3 FY26, reinforcing their 'BUY' rating and raising target prices, citing strong order accretion and a healthy pipeline expected to boost margins and return ratios.

Impact: This news is highly positive for BHEL and the Indian industrial sector. The large contract win, strong financial performance, and positive brokerage outlook are likely to drive investor confidence and potentially lead to further stock appreciation. The successful execution of these large projects will bolster BHEL's position in the power and industrial segments. Rating: 8/10

Difficult terms: EPC Contract: Engineering, Procurement, and Construction contract, where a company handles the design, sourcing of materials, and construction of a project. Supercritical Thermal Power Project: A highly efficient type of coal-fired power plant that operates at very high pressure and temperature to generate electricity more effectively than subcritical plants. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance. Order Book: The total value of contracts that a company has secured but not yet completed. Kavach System: An indigenously developed automatic train protection system designed to prevent accidents caused by signal failure or speeding. Book to Bill Ratio: A ratio that indicates a company's sales in a period compared to its order backlog. A ratio above 1 suggests more orders are being received than fulfilled.