BHEL reports 19% revenue growth and all-time high Rs 92,534cr order inflows in FY25

Why did BHEL’s revenue surge in FY25?

Bharat Heavy Electricals Limited (BHEL), one of India‘s largest engineering and public sector enterprises, has reported a provisional revenue of ₹27,350 crore for FY 2024–25, reflecting a sharp 19% year-on-year growth. This figure, unaudited but officially disclosed by the company, underscores BHEL’s renewed strength across the power and industrial engineering sectors.

The company’s robust financial performance is rooted in India’s infrastructure-led growth policy, especially in energy generation and industrial project delivery. With BHEL’s capabilities deeply embedded in the country’s power supply chain and core industries, its revenue surge aligns with broader economic momentum and the government’s prioritisation of self-reliant infrastructure.

How much did BHEL’s new orders grow and which sectors led the inflows?

FY25 proved to be a landmark year in terms of business development. BHEL recorded its highest-ever order inflows, amounting to ₹92,534 crore. This surge has elevated the company’s total order book to ₹1,95,922 crore as of March 31, 2025, setting the stage for continued operational visibility and growth.

The power segment was the key contributor, delivering ₹81,349 crore in fresh orders, primarily from large-scale thermal power projects commissioned by state utilities and central government-backed entities. These orders reflect India’s continued reliance on thermal energy for base load demand, despite increasing investment in renewables.

Additionally, the industrial segment clocked ₹11,185 crore in orders across defence, transportation, process industries, and manufacturing. This diversification is vital for BHEL as it mitigates dependency on cyclical power sector investments and helps stabilise revenue flows during sector-specific slowdowns.

How is BHEL performing on the execution front?

On the project execution side, BHEL successfully commissioned or synchronised 8.1 GW of thermal power capacity during the fiscal year. This performance not only highlights the company’s ability to convert backlog into delivery but also reinforces its reputation as a timely and reliable project executor.

In an environment where public sector projects often face delays, BHEL’s enhanced delivery metrics—driven by reforms in project management, digital integration, and supply chain coordination—signal a significant operational turnaround. The company’s commissioning of new capacity is crucial in meeting India’s rising electricity demand and improving grid stability.

What does this performance mean for BHEL’s future outlook?

With a strong backlog, healthy revenue pipeline, and improved execution rate, BHEL is positioned to carry forward its momentum into FY 2025–26. The company’s order visibility enables planning for capital investment, resource deployment, and strategic expansion into adjacent areas such as defence, renewable energy, and hydrogen-based technologies.

India’s commitment to expanding domestic manufacturing capacity and its thrust on the Atmanirbhar Bharat (Self-Reliant India) initiative offer further tailwinds. BHEL is expected to explore emerging opportunities in green hydrogen, carbon capture, grid-scale storage, and high-efficiency solar manufacturing, leveraging its vast infrastructure and engineering expertise.

How does BHEL’s growth reflect wider trends in India’s energy and engineering sector?

The company’s strong FY25 numbers mirror a nationwide trend of accelerated infrastructure development, driven by multi-year public expenditure programmes and reforms. The performance reinforces the idea that despite a global shift toward renewables, thermal power will remain a necessary part of India’s energy mix for years to come.

In addition, BHEL’s ₹11,185 crore industrial order inflow demonstrates a strategic realignment beyond core energy projects. From propulsion systems for metro rail to equipment for strategic defence establishments, BHEL’s non-power engagements are becoming increasingly significant.

With India modernising its logistics, defence manufacturing, and industrial corridors, BHEL’s central role in delivering indigenous, reliable equipment is likely to expand. This is aligned with broader policy mandates that emphasise local value addition, job creation, and technological sovereignty.

What are the implications for investors and market sentiment?

BHEL’s stock has seen a notable upswing in recent weeks, reflecting bullish sentiment on the back of its strong FY25 operational update. As of April 17, 2025, the stock was trading at ₹227.39, marking a 6.77% weekly gain and a 16.35% increase over the past month. However, the stock has declined 10.19% over the past 12 months, indicating historical volatility and investor caution despite recent gains.

Technical indicators support the ongoing rally. The Relative Strength Index (RSI) stands at 65.6, nearing overbought territory, while the Moving Average Convergence Divergence (MACD) remains above its signal line, both suggesting upward momentum. However, the RSI also indicates potential price exhaustion if the current rally continues without a breather.

Despite the upbeat technical signals, analyst sentiment remains mixed. Among 18 tracking analysts, the average recommendation is ‘Hold,’ with a consensus target price of ₹213. This implies a modest downside of roughly 6% from current levels, suggesting that a large part of FY25’s performance may already be priced in.

How are institutional investors positioned in BHEL?

BHEL’s shareholding data shows shifting sentiment among institutional investors. Foreign Institutional Investors (FIIs) have trimmed their holdings from 7.98% in December 2024 to 7.19% in March 2025. This reduction could reflect profit-booking amid recent price appreciation or a cautious stance on valuations following the rally.

On the other hand, Domestic Institutional Investors (DIIs) have increased their stake from 15.5% to 16.3% over the same period. This uptick suggests growing confidence from Indian mutual funds, pension funds, and insurance companies in BHEL’s long-term story, especially given the government’s infrastructure pipeline and strategic PSU orientation.

Retail participation remains strong, buoyed by narratives around Make in India, defence indigenisation, and energy independence—sectors where BHEL continues to hold competitive advantages.

Buy, Sell, or Hold BHEL in 2025?

From a stock market perspective, BHEL presents a nuanced case. Its order book strength, execution improvements, and sector tailwinds suggest long-term upside potential. However, in the short term, valuation pressures and mixed analyst recommendations indicate the possibility of limited upside unless additional growth catalysts emerge—such as new renewable contracts or international deals.

For long-term investors, particularly those bullish on India’s capex cycle and PSU re-rating, BHEL offers a strategic ‘Hold’ opportunity. Accumulation on dips could be a prudent strategy given its fundamental strengths. Short-term traders, however, should closely monitor price action and technical indicators before making fresh entries.