The Notification of Award for a 3×800 MW supercritical thermal plant strengthens BHEL’s order book and locks in execution work through the next four to five years, according to an ICICI Direct research note.
By S. JHA
Mumbai, April 2, 2026 — Bharat Heavy Electricals Limited has received a Notification of Award from NTPC Limited for the 3×800 MW Telangana Stage-II supercritical thermal power project, with the order valued at over ₹13,500 crore. The contract covers the complete main plant package — boiler, turbine, and generator — and is to be executed over 62 months.
ICICI Direct, in a research note on the development, described the order as “large and high-value,” translating to approximately ₹5.6 crore per megawatt.
“The order strengthens the company’s order book and provides revenue visibility over the next four to five years, given the long execution timeline,” the note said. “Overall, the development is positive for BHEL’s order book strength, execution pipeline, and margin outlook.”
What the order contains
The contract is structured as a full BTG — boiler, turbine, generator — package, meaning BHEL will be responsible for the core power generation equipment from end to end, rather than a partial or sub-contracted scope. For a supercritical thermal project at this scale, that represents a significant engineering and manufacturing commitment.
At 2,400 MW of total installed capacity across three units, the Telangana Stage-II plant is a major addition to NTPC’s generation portfolio. Supercritical technology operates at higher steam pressure and temperature than conventional thermal plants, improving fuel efficiency and reducing emissions per unit of electricity generated — a factor that has made it the preferred configuration for new large-scale coal-based capacity additions in India.
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Why analysts are paying attention
The per-MW valuation of ₹5.6 crore and the 62-month execution window are the two numbers that matter most for BHEL’s financial profile in the near term. A project of this duration means the revenue recognition will be spread across multiple financial years, providing a relatively predictable contribution to the top line through the latter half of this decade.
ICICI Direct’s note flagged the margin outlook specifically — a detail worth noting, given that BHEL has been navigating a period of order book rebuilding following years of subdued thermal power ordering. Large, fully-scoped BTG contracts at current price levels tend to carry better margins than smaller or partial-scope orders, particularly for a manufacturer with BHEL’s scale and fixed-cost base.
About BHEL
Founded in 1964, Bharat Heavy Electricals Limited is India’s largest government-owned engineering and manufacturing company in the electrical and industrial technology sector. The company designs, engineers, constructs, and services equipment across power — thermal, hydro, nuclear, and solar — as well as transmission, transportation, defence, and aerospace. It operates as a central public sector undertaking under the Government of India.
The NTPC order is among the larger single awards the company has received in recent quarters, and comes as India’s power sector is seeing renewed investment in baseload thermal capacity to support grid stability alongside the rapid addition of renewable energy.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company.)
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