New Delhi, March 20: Bharat Heavy Electricals Limited (BHEL), a leading engineering company, announced on Thursday its plan to invest approximately ₹3,064.46 crore in a joint venture with Coal India.
The investment will be made over four years, with BHEL holding a 49% equity stake in the joint venture company, Bharat Coal Gasification and Chemicals Limited (BCGCL), while Coal India will retain a 51% stake.
The primary aim of this joint venture is to establish a plant for producing ammonium nitrate from coal, with a capacity of 2,000 tons per day.
Additionally, BHEL’s board has approved the formation of another joint venture with Titagarh Rail Systems Limited, which will focus on the maintenance of Vande Bharat sleeper trains.
BHEL stated that the joint venture agreement will be finalized following approval from the Department of Investment and Public Asset Management (DIPAM), and adjustments may be made as necessary.
Following these announcements, BHEL’s shares experienced a decline during Thursday’s trading session, falling by 2.75% to ₹253 on the National Stock Exchange (NSE). The stock has dropped 4.60% this week and has seen a decline of approximately 13.19% year-to-date. However, over the past six months, the stock has risen by 6.67%, and it has increased by 23% over the last year.
In February, the government launched an offer for sale (OFS) to divest 5% of its stake in BHEL, with the initial 3% to be sold and an additional 2% available if needed. The minimum price for the OFS has been set at ₹254 per share.
In terms of financial performance, BHEL’s net profit for the third quarter of FY 2025-26 (October-December) surged nearly threefold to ₹382.49 crore, up from ₹124.77 crore during the same period last year.
The company’s revenue rose by 16.4% to ₹8,473.10 crore, supported by strong performance in the power and industrial sectors. BHEL has continued to show improvement compared to the previous quarter, indicating enhanced operational efficiency.
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