China’s ChiNext index falls 2% to 2,896.68

China’s ChiNext index falls 2% to 2,896.68

Bharat Heavy Electricals (BHEL) shares gained over 2% on Monday, September 2, reaching an intraday high of ₹213.3 on the NSE. The surge was driven by the company's signing of a License Agreement for Transfer of Technology (LAToT) with Defence Metallurgical Research Laboratory (DMRL) in Hyderabad [1].

The agreement allows BHEL to manufacture fused silica radar domes using advanced pressing and sintering technology. This technology transfer will enable BHEL to manufacture radar domes domestically, which are crucial for seeker-based guidance systems used in India’s missile programmes. The agreement is expected to enhance the country’s self-reliance in strategic defence systems [1].

Despite the positive market response, the details of the consideration in the agreement and other significant terms and conditions have been kept confidential. The company's share price was trading at ₹211.1 per share on the NSE at 12:50 PM, with the NSE Nifty50 up 0.57% at 24,565 levels [1].

In the April-June quarter of fiscal 2026 (Q1FY26), BHEL reported a consolidated revenue from operations of ₹548.69 crore, which was broadly flat compared to the year-ago period. However, the company's net loss widened to ₹455.5 crore against ₹211.4 crore in Q1FY25, primarily due to higher expenses [1].

The market capitalisation of the company stood at ₹73,621.27 crore, with the stock surging over 18% from the 52-week low of ₹176 touched on March 3, 2025. BHEL’s order inflow during the reported quarter was ₹13,445 crore, with the total outstanding order book as of June 30, 2025, standing at ₹2,04,375 crore [1].

Analysts remain optimistic about BHEL's performance, expecting improvements from Q3FY26 as major projects under construction near completion. The total order book is likely to increase to ₹2,250 billion by March 2026. The company's Ebitda margin is expected to improve gradually from 4.4% in FY25 to at least 11% in FY28 [1].

References:
[1] https://www.business-standard.com/markets/news/bhel-stock-gains-2-after-signing-agreement-with-drdo-check-details-here-125090100546_1.html