BHEL secures ₹2,500-crore Nigeria order for gas turbine generator packages

State-owned Bharat Heavy Electricals Ltd (BHEL) on Wednesday (June 3) said it has signed a contract agreement with Dangote Petroleum Refinery & Petrochemicals Free Zone Enterprise for the execution of a project in Nigeria’s Dangote Industries Free Zone.

The total consideration is in the range of ₹2,000-2,500 crore. The contract covers design, manufacturing, supply up to Mumbai Port, supervision of building and commissioning, and performance guarantee testing of eight gas turbine generator packages.

The scope excludes civil work.

The equipment is intended for use in a petroleum refinery and polypropylene plant in Nigeria. The agreement was signed on June 2, 2026, and was disclosed on June 3, 2026. The order is an international contract, awarded through an international tender process.

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The execution period for the contract is 26 months from the start date or effective date of the agreement. BHEL confirmed that neither promoter group nor group companies have any interest in the awarding entity and that the contract does not fall under related party transactions.

Fourth quarter results

BHEL's earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled from the same quarter last year to ₹1,754 crore from ₹832 crore. The number is also significantly higher than the CNBC-TV18 poll of ₹831 crore.

The EBITDA margin for the quarter expanded by 500 basis points to 14.2% from 9.2% last year. A CNBC-TV18 poll had pegged the figure to be 10.1%. BHEL's revenue grew by 37% from last year to ₹12,310 crore, which was largely in-line with the CNBC-TV18 poll of ₹12,398.3 crore.

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Net profit for the quarter more than doubled in value to ₹1,283 crore from ₹504 crore last year, higher than the CNBC-TV18 poll of ₹826 crore. BHEL's revenue growth during the quarter was driven by strong execution in its power segment, which led to the sharp improvements in margins as well.

Revenue from the power segment grew 53% from last year to ₹9,509 crore, while the industry segment revenue was flat. Margins for the power business expanded from 5% last year to 20%, while industry segment margins narrowed to 24% from 31% earlier.

Shares of Bharat Heavy Electricals Ltd ended at ₹406.10, down by ₹4.85, or 1.18%, on the BSE today, June 3.

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