BHEL targets to achieve 100 GW Pumped Storage Projects by 2035-36, made a strategic foray into the coal gasification sector

BHEL targets to achieve 100 GW Pumped Storage Projects by 2035-36, made a strategic foray into the coal gasification sector

The Electrical Post

Bharat Heavy Electricals Limited (BHEL) has been at the forefront in powering India's growth as a trusted partner in nation-building and a leader in the capital goods sector. Combining world-class engineering, manufacturing, project execution expertise, and after-sales support, BHEL serves a broad spectrum of sectors including power, transportation, defence, aerospace, oil & gas, and process industries. With a significant contribution to India's power generation capacity across thermal, hydro, gas, nuclear, and solar segments, BHEL continues to be a key enabler of the country's energy security, infrastructure development, and self-reliance objectives.

During FY 25-26, BHEL delivered strong growth, with Revenue from Operations rising 19% on the back of enhanced execution and operational performance. Significant order wins across thermal, transmission, captive power and industrial businesses, along with a strategic foray into coal gasification, further strengthened the Company’s market position and growth outlook.

Performance Highlights

• With an order inflow of INR 75,916 Crore, your Company’s order book reached an all-time high of INR 2,39,057 Crore, reaffirming customer confidence and strong revenue visibility. 

• Revenue from Operations increased by 19% to INR 33,782 Crore, Profit After Tax increased three-fold to INR 1,578 Crore, and EBITDA stood at INR 3,189 Crore. 

• The Company generated a net cash surplus of INR 4,630 Crore, underscoring strong financial discipline and cash conversion. 

• In the Power Sector, the Company secured orders worth INR 59,256 Crore, including INR 8,288 Crore from the coal gasification segment and thermal orders of about 10 GW.

• Industry Sector and International Operations booked orders worth INR 16,660 Crore, around 50% higher than the previous year, including a major +/- 800 kV, 6,000 MW HVDC order for the Bhadla-Fatehpur link and export orders from Guatemala, Fiji and Nicaragua. 

• The Company commissioned or synchronised about 8.9 GW of power capacity during the year across India and overseas, including the 6x170 MW Punatsangchhu-II Hydro Project in Bhutan. 

• Delivered four Upgraded SRGMs to the Indian Navy ahead of schedule, strengthening India’s defence capabilities. 

• Installed and commissioned 400 kV GIS at POWERGRID Khavda in a record 75 days, ahead of schedule. 

• Successfully commissioned a standalone HVDC Electrode Station at Malegaon, a project of national importance connected with the Mumbai-Ahmedabad High Speed Rail project. 

• Successfully executed the maiden order for the Sulphur Recovery Unit package at IOCL Paradip Refinery, Odisha, marking the Company’s capabilities in the oil and gas sector.

Strategic Initiatives and Future Outlook

The renewed emphasis on energy security, following recent geopolitical disruptions, has reinforced the role of coal-based generation in national planning. With policy makers envisaging thermal capacity of 315 GW by 2035-36 to meet the needs of a growing economy, robust thermal power ordering has enabled your Company to leverage its engineering strength, manufacturing capability and execution expertise.

At the same time, the Company’s order book is also moving beyond conventional thermal, with diversified and growth businesses such as transmission, rail transportation, coal gasification, defence, industrial products and international business contributing about 29% of FY 2025-26 order inflow, and having a similar share in the outstanding order book carried forward into FY 2026-27.

Nuclear energy is set to play a pivotal role in India’s energy security and decarbonisation journey. The SHANTI Act reforms are expected to support the sector’s growth towards the national objective of 100 GW nuclear power capacity by 2047. Backed by decades of proven expertise, BHEL is well positioned to capitalise on this opportunity, while actively supporting the development of Bharat Small Modular Reactors and other emerging nuclear technologies.

The growing penetration of renewable energy is creating a strong need for grid-balancing solutions. The Government’s roadmap for 100 GW of Pumped Storage Projects by 2035-36 opens a substantial growth avenue for BHEL and reinforces its role in supporting the country’s energy transition.

BHEL made a strategic foray into the coal gasification sector through the coal-to-2,000 TPD Ammonium Nitrate project from Bharat Coal Gasification and Chemicals Ltd. Supported by the Government of India’s INR 37,500 Crore coal and lignite gasification initiative, this emerging sector offers a substantial growth opportunity for the Company.

Transmission infrastructure will play a crucial role in reliable integration of renewable energy into the grid. With two HVDC terminal station orders under implementation, BHEL is well placed to support long-distance transmission of renewable power to load centres.

With manufacturing of 80 Vande Bharat trainsets underway, BHEL also received its maiden order for development of Kavach signalling system on an identified route of the South Western Railway, marking a significant step towards diversification in the rail signalling segment. Further, the Company continues to pursue suitable technology, supply, indigenisation and capability-building arrangements in identified growth areas, thereby supporting its long-term diversification strategy.

During FY 25-26, BHEL reduced emission intensity by about 15.4%, expanded captive solar capacity to about 43 MWp generating about 44 million units of electricity, up about 12% year-on-year, planted over 44,000 saplings, and further strengthened its green manufacturing footprint with four additional Units assessed for GreenCo certification, taking the total to twelve Units certified over the last three years.

Project Execution and Delivery 

The Company continued to undertake focused initiatives during FY 2025–26 to strengthen project execution capabilities, improve delivery performance and ensure timely completion of projects. During FY 2025–26, the Company successfully commissioned/synchronised ~8.9 GW of power generation capacity across various projects reflecting the Company's strong project execution capabilities and continued contribution to strengthening the country's power generation capacity. 

To further reinforce execution, the Company adopted advance manufacturing initiatives, calibrated outsourcing and targeted capacity augmentation to align manufacturing capabilities with project requirements, reduce lead times and improve execution efficiency. In addition, streamlined decision-making mechanisms were introduced to expedite procurement, facilitate faster resolution of critical issues and support timely project execution across business segments.

Future Perspective

BHEL targets to achieve 100 GW Pumped Storage Projects by 2035-36. In this direction, BHEL is fully equipped to deliver world class equipment for meeting the projected requirements of Pumped Storage Plants (PSPs) through indigenous design and manufacturing of reversible pump turbines and motor-generators up to 350 MW unit size. BHEL has its own in-house R&D facility for hydraulic development and NABL accredited Laboratory for testing of turbine, pump & pump-turbine models at BHEL, Bhopal. BHEL has successfully developed indigenous technology through inhouse R&D efforts for design, manufacturing, erection & commissioning of equipment for pumped storage projects. 

The above speech of K. Sadashiv Murthy, Chairman & Managing Director of Bharat Heavy Electricals Limited (BHEL), has been extracted from the annual report for FY 25-26

Published at : Oct 14, 2026 07:47 AM (IST)

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