BHEL Shares Surge: Why a ₹1,500 Crore SAIL Order and ₹2.2 Lakh Crore Order Book Triggered a Rally

Synopsis: Bharat Heavy Electricals Ltd (NSE: BHEL) shares gained momentum on February 18, 2026, following a ₹1,200–₹1,500 crore order from Steel Authority of India (SAIL). The “Zero-Minute” fact is that BHEL’s massive ₹2.22 Lakh Crore order book and a 206% YoY surge in Q3 net profit have solidified its position as India’s leading power infrastructure play.

On Wednesday, February 18, 2026, shares of the Maharatna PSU Bharat Heavy Electricals Limited (BHEL) rose nearly 1% to ₹265.90 in early trade. The stock is in the spotlight after the company announced a significant domestic contract from Steel Authority of India Limited (SAIL) for its IISCO Steel Plant expansion. This fresh inflow comes just days after the Government of India successfully concluded a 5% stake sale (OFS) in the company, which saw robust institutional demand.

The rally is backed by a record-high order book that currently stands at approximately ₹2,22,800 Crore, providing revenue visibility for the next 3–4 years. Investors are increasingly optimistic about BHEL’s “turnaround story,” as the company transitions from a period of stagnation to high-growth execution across power, defence, and railway sectors.

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Why is BHEL stock rising today?

The primary driver is the ₹1,500 Crore Captive Power Plant (CPP) Order. BHEL received the Letter of Acceptance (LoA) for a turnkey project (CPP Package-1) at SAIL’s IISCO Steel Plant in Burnpur, West Bengal. The project, part of SAIL’s 4.08 MTPA crude steel expansion, involves the design, engineering, supply, and commissioning of the power plant within a 39-month timeline.

Furthermore, the “1-2-1” rule of BHEL’s recovery was evident: one massive industrial order (SAIL), two core financial milestones (206% profit jump and 16% revenue growth in Q3), and one record-breaking order book. The company’s Q3 FY26 Net Profit climbed to ₹382 Crore, up from ₹125 Crore last year, signaling that improved operating leverage is finally translating into bottom-line gains.

BHEL: Order Book and Financial Snapshot (Feb 2026)

Metric	Details / Q3 FY26	YoY Change / Status
Total Order Book	₹2,22,800 Crore	Record High
New SAIL Order	₹1,200–₹1,500 Cr	Turnkey Project
Consolidated Net Profit	₹382 Crore	206% ↑
Q3 Revenue	₹8,473 Crore	16% ↑

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The “Analyst Consensus” on BHEL

Brokerages are re-rating BHEL as a key beneficiary of India’s thermal power capex cycle and indigenization in defence.

• Revenue Visibility: Analysts at Finology note that the ₹2.2 lakh crore order book ensures a strong revenue pipeline. However, they caution that timely execution remains the biggest variable for sustaining the current valuation.
• Valuation & OFS: Despite a short-term dip following the ₹254 floor price OFS, the stock has found strong support. Experts believe the increased free float will improve liquidity and price discovery for long-term investors.
• Technical Outlook: Chartists identify a strong support zone at ₹250–₹255. If the stock maintains its momentum above ₹270, it could test its recent 52-week high of ₹305.90 in the coming weeks.

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Also Read: NDL Ventures Hits 20% Upper Circuit: Why CCI Approval for Hinduja Leyland Merger Triggered a Rally

The Bottom Line

The SAIL order win reinforces BHEL’s dominance in the industrial captive power segment. For the Aam Aadmi investor, the focus remains on the company’s ability to manage its working capital and execute its ₹2.22 Lakh Crore pipeline without cost overruns. With a 206% profit surge already in the bag, BHEL is proving to be a formidable PSU recovery play.