Execution-led margin upside supports BHEL

Policy overhang limits near-term stock performance

- DEEPAK KORGAONKAR

After hitting a 17-month high of %305.85 apiece in trade on Wednesday, shares of Bharat Heavy Electricals Ltd (BHEL) sawa sharp decline on Thursday.

The capital goods major slid 10.34 percent on reports that the government was planning to scrap a five-year-old restriction on Chinese firms bidding for government contracts.

The curbs were imposed in 2020 after the Galwan Valley border skirmish and required Chinese bidders to register with a government committee and obtain political and security clearances. Other stocks in the space, such as ABB India, Siemens, and Larsen & Toubro, also fell in the range of 3-5 per cent.

Despite Thursday’s correction, BHEL has gained about 26 per cent over the past year. The company is set to declare its third-quarter (October-December/Q3) 2025-26 (FY26) results on January 19. As of September 30, 2025, BHEL’s total outstanding order book stood at 2.19 trillion. Of this, %1.75 trillion, or about 80 per cent, was from the power sector, with the remaining %44,545 crore from the industrial segment, including exports.