Bharat Heavy Electricals Limited (BHEL), the state-run engineering giant, has announced significant new orders in September 2025, reinforcing its position in both the railways and power sectors. The company secured a ₹22.87 crore order from Indian Railways’ South Western Railway division and accepted a ₹2,600 crore Letter of Intent (LoI) from MB Power (Madhya Pradesh) Limited. Despite these developments, BHEL’s share price closed marginally lower by 0.30% on September 12, 2025.
On September 12, 2025, BHEL disclosed that it had received a Letter of Intent (LoI) issued on September 11 from Indian Railways’ South Western Railway division.
The contract, worth ₹22.87 crore including GST, is for the design, development, supply, installation, trial, and commissioning of On-board KAVACH equipment in locomotives and trackside KAVACH systems. These will be deployed at stations, level crossings, interlocking cabins, and automatic block signalling locations.
The equipment will be manufactured at BHEL’s Bengaluru facility, with the order scheduled for completion within 18 months.
Earlier in September, BHEL announced another major order win. On September 3, the company confirmed it had accepted a Letter of Intent worth approximately ₹2,600 crore, excluding GST, from MB Power (Madhya Pradesh) Limited.
The order covers the supply of a boiler, turbine, generator, and associated auxiliaries, along with control and instrumentation, for MB Power’s 1x800 MW Anuppur thermal power project in Madhya Pradesh. The project will be based on supercritical technology.
Manufacturing responsibilities are divided across BHEL facilities, with the boiler to be produced at the Trichy plant and the turbine generator at the Haridwar facility. The supply completion schedule is set at 58 months.
The order has been awarded by a domestic entity, and BHEL clarified that neither its promoters nor group companies have any stake in MB Power. The contract agreement is expected to be finalised shortly.
On September 12, 2025, BHEL share price opened at ₹228.50, compared to the previous close of ₹229.08. During the session, the stock touched a high of ₹230.51 and a low of ₹226.80 before closing at ₹228.40, down by 0.30% at the end of the trading day.
The stock recorded a traded volume of 75.75 lakh shares and a traded value of ₹173.11 crore on the NSE. The market capitalisation stood at ₹79,530.33 crore. Over the past 52 weeks, BHEL has touched a high of ₹291.10 and a low of ₹176.00. The stock is currently trading at a P/E ratio of 344.82.
BHEL’s back-to-back orders worth over ₹2,622 crore in September 2025 highlight its strong position in both rail safety technology and supercritical power projects. While the Indian Railways contract strengthens its presence in railway modernisation, the MB Power order adds to its large-scale infrastructure portfolio. Despite these wins, the company’s stock ended 0.30% lower on September 12, suggesting investors may be adopting a wait-and-watch approach.
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Published on: Sep 12, 2025, 4:09 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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