BHEL Secures ₹2,600 Crore LoI from MB Power for Anuppur Thermal Project

State-run engineering major Bharat Heavy Electricals Limited (BHEL) has added a large domestic order to its portfolio, signalling resilience in its power equipment business. On September 3, the company announced that it had accepted a letter of intent (LoI) worth around ₹2,600 crore, excluding GST, from MB Power (Madhya Pradesh) Limited. The deal is linked to the supply of key components for a major upcoming power project in the state.

Order Details

The LoI relates to MB Power’s 1x800 MW Anuppur thermal power project in Madhya Pradesh, which will use supercritical technology. BHEL’s scope of work covers the supply of boiler, turbine, generator and associated auxiliaries, along with control and instrumentation. The boiler will be produced at BHEL’s Trichy plant, while the turbine generator will be manufactured at its Haridwar facility.

The supply completion has been scheduled over a 58-month period, and the contract agreement is expected to be finalised soon. Importantly, BHEL confirmed that neither its promoters, promoter group, nor any related companies have any interest in MB Power, ensuring an arm’s length transaction.

Manufacturing and Technology Focus

The use of supercritical technology reflects BHEL’s commitment to delivering high-efficiency power generation equipment. By leveraging its Trichy and Haridwar facilities, the company aims to meet project timelines while showcasing domestic manufacturing strength. Such projects also support India’s efforts to boost indigenous capacity in advanced thermal technologies.

Financial Performance in Q1FY26

While the order win provides a positive boost, BHEL continues to face financial challenges. For the quarter ended June 30, 2025, the company reported a net loss of ₹455.4 crore, wider than the ₹211 crore loss recorded in the same quarter last year. The increase in losses was attributed largely to higher expenses.

Revenue from operations, however, edged up slightly by 0.4% year-on-year, reaching ₹5,486.9 crore compared to ₹5,484.9 crore in the corresponding period of the previous fiscal. This modest revenue growth highlights the tough operating environment, but order inflows such as the Anuppur project may provide stability going forward.

BHEL Share Price Performance

On September 3, 2025, BHEL share price opened at ₹215.20 against the previous close of ₹215.07. The stock touched a low of ₹214.20 during the session and eventually closed higher by 0.72% at ₹216.61.

Read More: BHEL signs tech transfer deal with DRDO lab for radar dome manufacturing

Conclusion

BHEL’s ₹2,600 crore order from MB Power represents a significant addition to its pipeline and highlights its continuing relevance in India’s thermal power equipment sector. Although the company’s quarterly financial performance remains under pressure, strong domestic orders and partnerships in transmission projects may provide the foundation for long-term recovery.

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