October 2026 , India – Bharat Heavy Electricals Limited (BHEL) has approved an investment of approximately ₹500 crore to expand manufacturing facilities for thermal and nuclear power sets at its Heavy Electricals Equipment Plant (HEEP) in Haridwar, strengthening its capabilities in India’s power equipment sector.
The company’s Board of Directors has also approved the merger of its Electrical Machines Repair Plant (EMRP) in Mumbai with the Electronics Division (EDN) in Bengaluru. The consolidated unit will operate under EDN, with the merger scheduled to take effect from November 1, 2026.
The decisions come as BHEL reports robust second-quarter financial performance, supported by growth across its power and industrial businesses.
BHEL to Invest ₹500 Crore in Haridwar Manufacturing Facilities
The proposed capital expenditure of around ₹500 crore will support the development of additional facilities at BHEL’s HEEP in Haridwar, Uttarakhand. The new infrastructure is intended to expand the company’s manufacturing capacity for thermal and nuclear power sets.
The investment reflects the continued importance of domestic power equipment manufacturing as India works to strengthen its electricity infrastructure and expand its energy-generation capabilities.
Additional manufacturing capacity could also support BHEL’s role in supplying equipment for future thermal power projects and nuclear energy development, although project timelines and commissioning details were not specified in the announcement.
BHEL Approves Merger of Mumbai and Bengaluru Units
Alongside the capital investment, BHEL has approved the integration of EMRP, Mumbai, and EDN, Bengaluru, into a single organisational unit.
The Electronics Division in Bengaluru will be the merged entity, with the arrangement becoming effective on November 1, 2026.
The restructuring is expected to consolidate the two units under one organisational structure. Further details on operational integration and the financial impact of the merger were not provided.
BHEL Q2 Results: Profit and Revenue Beat Estimates
BHEL delivered a strong second-quarter performance, with consolidated net profit and revenue exceeding the estimates cited in the results data.
The company reported consolidated net profit of ₹821 crore, compared with an estimate of ₹756 crore. Revenue reached ₹9,300 crore, surpassing the estimated ₹8,319 crore.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 76.7% year-on-year to ₹1,026 crore, compared with ₹581 crore in the corresponding period last year. EBITDA also exceeded the estimate of ₹843 crore.
The EBITDA margin expanded to 11%, up from 7.7% a year earlier and above the estimated 10.1%.
The figures indicate improved operating performance during the quarter, supported by stronger contributions from both the power and industrial segments.
Power Business Revenue Rises 17%
BHEL’s power segment continued to be a key contributor to its quarterly performance.
Power business revenue increased 17% year-on-year to ₹6,638 crore. Earnings before interest and taxes (EBIT) for the segment rose 44% year-on-year to ₹858 crore.
The increase in revenue and operating earnings highlights the segment’s contribution to the company’s overall growth.
Industrial Business Records Strong Growth
BHEL’s industrial business also reported significant year-on-year gains.
Industrial segment revenue climbed 45% to ₹2,662 crore, while industrial EBIT surged 85% year-on-year to ₹519 crore.
The performance points to stronger contributions from industrial operations alongside the company’s core power business.
What BHEL’s Expansion Means for India’s Power Equipment Sector
The ₹500 crore investment in Haridwar and the restructuring of BHEL’s Mumbai and Bengaluru units represent two significant organisational and manufacturing decisions for the state-owned engineering company.
Expanding thermal and nuclear equipment manufacturing capacity could help BHEL strengthen its position in India’s power infrastructure supply chain. Meanwhile, the merger of EMRP and EDN will bring the two units under a single organisational structure from November 1, 2026.
Combined with the company’s strong second-quarter results, these moves place manufacturing expansion, operational consolidation and growth across its power and industrial businesses at the centre of BHEL’s current strategy.
For India’s power equipment industry, BHEL’s investment is a development to watch as the country continues to build and modernise its energy infrastructure.
Adani Power Secures LoA to Supply 1,234 MW of Thermal Power to Uttarakhand Under Long-Term Deal
