Philippine stock index opens little changed at 6,145.26

Philippine stock index opens little changed at 6,145.26

Bharat Heavy Electricals Limited (BHEL) saw its stock rise over 2 per cent on Monday, September 2, following the company's signing of a License Agreement for Transfer of Technology (LAToT) with the Defence Metallurgical Research Laboratory (DMRL) in Hyderabad [1]. The agreement allows BHEL to manufacture fused silica radar domes using advanced pressing and sintering technology, enhancing the country’s self-reliance in strategic defence systems.

The stock price of BHEL touched an intraday high of ₹213.3 on the National Stock Exchange (NSE) after the announcement. At 12:50 PM, the share price was trading 1.5 per cent lower at ₹211.1 per share. In comparison, the NSE Nifty50 was up 0.57 per cent at 24,565 levels. The market capitalisation of BHEL stood at ₹73,621.27 crore, with the stock surging over 18 per cent from its 52-week low of ₹176 touched on March 3, 2025.

The agreement with DMRL is significant as it enables BHEL to manufacture radar domes domestically, which are crucial for seeker-based guidance systems used in India’s missile programmes. The details of the consideration in the agreement and other significant terms and conditions have been kept confidential.

In the April-June quarter of fiscal 2026 (Q1FY26), BHEL posted a consolidated revenue from operations of ₹548.69 crore, broadly flat compared to the previous year. The company's net loss widened to ₹455.5 crore against ₹211.4 crore in Q1FY25, primarily due to higher expenses. BHEL’s order inflow during the reported quarter was ₹13,445 crore, with a total outstanding order book as of June 30, 2025, standing at ₹2,04,375 crore.

Brokerages expect BHEL's performance to improve from Q3FY26, with the total order book likely to increase to ₹2,250 billion by March 2026. The steady flow of new orders supports the view that the thermal power sector is making a comeback, with BHEL expected to win around 17 GW of new projects over the next two to three years.

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