Synopsis: Expanding its technological footprint, Bharat Heavy Electricals Limited has signed a deal with South Korea’s E2S Company for excitation systems. The move aims to localize advanced engineering capabilities and strengthens the company’s ability to cater to both domestic and international power sectors.
Shares of a leading power equipment manufacturer surged up to 4.9 percent after announcing a strategic international partnership. The BSE-listed company came into focus following a regulatory disclosure regarding a Technology Collaboration Agreement signed with a South Korean entity.
With a market capitalisation of Rs. 97,045 crore, the shares of Bharat Heavy Electricals Limited were trading at Rs. 278.7 per share, up 4.9 percent from its previous closing price of Rs. 265.70 apiece. It is trading at a P/E of 121.73.
Bharat Heavy Electricals Limited (BHEL) has entered into a Technology Collaboration Agreement (TCA) with M/s E2S Company Limited, based in the Republic of Korea. The agreement focuses on the design, engineering, and manufacturing of Static Excitation Systems (SEE) and Brushless Excitation Systems (AVR) for synchronous machines. These systems are critical for controlling the output voltage and reactive power of large generators used in power plants.
The collaboration provides the company the rights to manufacture, install, test, and retrofit these systems within India and in overseas territories. While the financial consideration for the deal remains confidential, the partnership is intended to enhance technical capabilities and maintain a competitive edge in the excitation system business. This vertical integration allows the firm to offer more comprehensive solutions for power generation projects, reducing reliance on third-party technology providers for specialized electrical components.
Bharat Heavy Electricals Limited is a central public sector undertaking and the largest government-owned power generation equipment manufacturer in India. Incorporated in 1964, the company operates across the power, industry, and transportation sectors. For the third quarter of FY26, the company reported consolidated revenue of Rs. 8,473 crore, an increase of 16.44 percent year-on-year. Net profit for the same period surged by 189.83 percent to Rs. 390 crore compared to Rs. 134 crore in the previous year’s corresponding quarter.
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