Major win for BHEL as ₹12 billion Hindalco deal energises order book

The order book of Bharat Heavy Electricals Limited (BHEL), the state-owned engineering giant, received a boost by landing a significant contract for power equipment at an aluminium manufacturing facility in Odisha. For this order book, the company received a boiler turbine generator package, which is valued at nearly INR 12 billion and is being given by Hindalco Industries, which further pushes the industrial development within the state.

The order is directly linked to Hindalco’s Aditya Aluminium project located in Lapanga, in the Sambalpur district. According to the available information, BHEL received a letter of intent for carrying out a package for a 2 x 150 MW captive power plant, which solidifies its position in major industrial power infrastructure projects.

Under the Ministry of Heavy Industries, BHEL stands out as one of India’s largest engineering and manufacturing companies, creating a difference in the energy and infrastructure sectors. The firm has been globally recognised as the top power equipment manufacturer, with a wide-ranging portfolio of products, systems and services tailored for stakeholders in various fields, including power, transmission, transportation, renewables, water, defence and aerospace, as well as oil and gas, among others.

Also read: Hindalco announces plans for aluminium smelter expansion and downstream push

Detailed scope of contract

As drafted under the contract, the engineering giant will oversee design and engineering, manufacturing and supplying of key equipment and transporting it to the project site. The contract further extends administering the erection, commissioning and performance acceptance testing. In this, the civil works will not be included and will be handled separately. The main aim here is to meet the growing power needs of the aluminium unit and ensure a steady energy supply for its operations.

In Q3 FY26, the firm's order book reached INR 2,228 billion. In this, 20 per cent came from the industry orders, which include exports and the remaining 80 per cent is the contribution of the power orders. In Q2 FY26, the company saw an order inflow worth INR 459 billion, showing a similar distribution, which is 24 per cent from industry (including exports) and 76 per cent from power.

During Q3 of FY 2025-26, the company landed several significant contracts, like the EPC works for the 1×800 MW Darlipali STPP Stage-II, the E&M package for the 3×16 MW Chanju-III hydroelectric project, an EPC contract for a 265 TPH gas/oil-fired boiler for an oil refinery and the supply of interconnecting transformers and 765 kV shunt reactors to various transmission utilities and power plants.

As per the terms laid out in the intent, Unit 1 is expected to start within 35 months, while Unit 2 will be commissioned within 37 months from the contract's effective date, which is marked by the issuance of the intent.

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Benefiting society as well

This order book development comes precisely at the time when Odisha itself is under a drastic transformation with speed, especially within the metals and manufacturing sectors. Within the state, Hindalco's aluminium operations are deemed to contribute to the long-term capacity expansion strategy, where the primary role will be played by the captive power generation for maintaining cost control and operational efficiency.

In addition to this, the project will also create a positive impact on the state's economy due to the rapid industrial growth, as well as generate plenty of employment opportunities, covering the entire region. With years to come, the execution progress will expand, where this contract is deemed to nudge BHEL's performance alongside boosting Hindalco's production capabilities.

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Highlighting BHEL's gains

This order, for BHEL, within the industrial sector, had strengthened its foothold and boosted its visibility for various revenue-generating streams. The company has been actively seeking projects beyond the traditional utility-based power sector, especially from private and industrial clients. The Hindalco order fits perfectly with this approach and underscores the ongoing demand for large-scale power equipment in key industries.

Given the ongoing investment momentum in India’s industrial power infrastructure, the approval of the INR 12 billion BTG package creates direct support and a nudge to move further in the process. It also reflects the confidence major manufacturers have in boosting their capacity, backed by dependable energy solutions.

Market opinion regarding the project

In the stock market, after the announcement, BHEL’s share price jumped by 2.22 per cent during the day. In the past six months, the stock price of the firm increased by 13.11 per cent.

Hindalco also experienced a similar trend, where its share price, in the intraday trade, rose by 1.51 per cent. Over the past half-year, the company’s stock has surged by 40 per cent, showcasing the growing investors' confidence in the performance and future growth of this metals and mining giant.

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