EXCLUSIVE
BHEL official says transport ops accounted 5% of total revenue last few quarters
This story was originally published at 16:43 IST on 9 April 2025
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--BHEL official: Transportation vertical revenue share 5% in last few qtrs
--BHEL official: Transportation ops sales driven by railways, pvt cos demand
By Rajesh Gajra
NEW DELHI – Bharat Heavy Electricals Ltd. has seen around 5% of its total revenue from operations come from the transportation business in the industry segment in the last few quarters, according to a senior company official. In 2024-25 (Apr-Mar), apart from large orders from Indian Railways, the company's transportation business witnessed "a stable demand from the private sector," the official told Informist.
The revenue from the transportation business of BHEL is expected to rise further in FY26 as the contractual delivery of Vande Bharat trains will start from June. In April 2023, the railways ministry gave an order to the consortium of BHEL and Titagarh Wagons Ltd. to make 80 sleeper class Vande Bharat train sets for INR 96 billion, or INR 1.20 billion per train, excluding taxes and duties. The ministry also gave an additional order to the consortium for comprehensive maintenance of these 80 trains post-delivery for a period of 35 years which, according to BHEL, is valued at over INR 134 billion. The total value of the Vande Bharat orders is INR 230 billion.
BHEL has been supplying, over many years, propulsion system, transformers, traction motors, and other electrical components to the Indian Railways against regular orders. These components will serve as input materials for the Vande Bharat train sets order, according to the company.
The share of BHEL in the total order value of Vande Bharat train sets production, including the 35-year maintenance contract, is slightly above 50%, or around INR 130 billion. BHEL is due to deliver to the Indian Railways the first train set in June and the second one in August. The revenue recognition for Vande Bharat train sets will take effect as and when the company makes deliveries to the Indian Railways.
The revenue generation from Indian Railways' orders has grown 5-6% annually in the last 2-3 years, according to the company official.
In the first nine months of FY25, the total revenue of BHEL rose 24% on year to INR 193.46 billion. Given that the transportation business made up for around 5% of the total revenue of the company, the revenue from the vertical would be around INR 9.67 billion in the first nine months of FY25.
The transportation business of the company comes under the industry segment which saw revenue rising sharply by 37% on year to INR 46.01 billion in Apr-Dec, and had a revenue share of nearly 24%. Revenue from the power segment rose 20% on year to INR 147.45 billion in Apr-Dec. The power segment made up for 76% of the total revenue.
In its annual report for FY25, BHEL said that rail transportation solutions were a key focus area for research and development. According to the annual report, the company is keen on providing total solutions for rail transportation in areas of three-phase alternating current drive system for electric locomotives, electric multiple unit trains, high-powered locomotives, and high speed train sets.
The earnings before interest, tax, depreciation, and amortisation of BHEL jumped up 2.4 times to INR 7.54 billion in the first nine months of FY25, and the company reported a net profit of INR 89 million against a net loss of 2.24 billion in the same period a year ago. BHEL had an outstanding order book of INR 1.602 trillion at the end of the December quarter, of which 76% pertained to the power segment and 22% to the industry segment. The order inflow in the first three quarters of FY25 was INR 479.5 billion, up 33% on year.
On Wednesday, shares of BHEL ended 0.4% higher at INR 211.81 on the National Stock Exchange of India. End
Edited by Ashish Shirke
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