Shares of Bharat Heavy Electricals Ltd. (BHEL) gained more than 3% on Wednesday, November 11, after the company secured an order between ₹600 crore – ₹900 crore from Power Grid Corporation of India.
According to an exchange filing, BHEL has received a Notification of Award (NOA) from Power Grid, on behalf of its project special purpose vehicle (SPV), for setting up two synchronous condensers at Kalyanpur in Gujarat.
The project involves the design, engineering, manufacturing, supply, erection, testing and commissioning of two +300/-200 MVAR synchronous condensers. These will be part of the transmission system associated with the integration of power from renewable energy projects in the Jam Khambhaliya Renewable Energy Zone (REZ) in Gujarat.
The project is valued between ₹600 crore to ₹900 crore, excluding Goods and Services Tax (GST), and is scheduled to be executed over 35 months.
What are synchronous condensers?
Synchronous condensers are rotating electrical machines used to support power system stability. They help manage reactive power, regulate voltage and improve the reliability of electricity transmission networks.
These systems are particularly relevant to HVDC transmission infrastructure, where voltage control and grid stability are important for reliable power transmission.
Second Power Grid order in recent days
The latest contract comes days after BHEL disclosed another order in the same value range from Power Grid for setting up two synchronous condensers at the Barmer-II High Voltage Direct Current (HVDC) Terminal Station in Rajasthan.
The November 7 order also involves two units with a capacity of +300/-200 MVAR each. BHEL will undertake the design, engineering, manufacturing, supply, erection, testing and commissioning. The execution period for this contract is 44 months.
BHEL gets ₹207 crore GST demand dropped
Separately, BHEL has received an adjudication order from the Telangana Commercial Tax Department dropping the entire GST demand of ₹207.26 crore raised against the company for the financial year 2022-23.
The order, dated November 7, 2026, was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, and communicated to BHEL on November 9. The demand, along with the consequential interest and penalty, has been dropped.
BHEL said there would be no financial impact on the company following the order and that no further action was required.
The FY23 demand was part of show-cause notices issued in September 2025, covering three financial years and amounting to ₹586.43 crore. These comprised demands of ₹184.55 crore for FY22, ₹207.26 crore for FY23 and ₹194.62 crore for FY24.
In January 2026, BHEL had disclosed that the tax authorities dropped ₹183.77 crore of the demand for FY22, along with the associated interest and penalty.
With the latest order, demands relating to FY22 and FY23 have now been dropped. The ₹194.62 crore demand for FY24 remains under adjudication. BHEL said the matter was expected to be settled on similar lines.
How did BHEL Fare In Q2?
BHEL reported revenue of ₹9,300 crore for the September quarter, marking a 23.8% increase from the corresponding period last year and marginally ahead of the CNBC-TV18 poll estimate of ₹9,236 crore.
Net profit more than doubled year-on-year to ₹810 crore, compared with ₹368 crore in the year-ago quarter. This was also significantly higher than the poll estimate of ₹654.4 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 77% to ₹1,026 crore, beating the estimate of ₹881 crore. EBITDA margin expanded by 330 basis points to 11%, compared with 7.7% in the corresponding quarter last year and the poll estimate of 9.5%. This was BHEL’s highest second-quarter EBITDA margin in 13 years.
Shares of BHEL are marginally off the highs of the day, still holding on to gains of 1.8% at ₹430.8. The stock is up 48% so far this year.
BHEL shares gain 3% after bagging second Power Grid order in a week worth up to ₹900 crore