The chemicals division of Bharat Heavy Electricals Limited (BHEL) would be diversified through an investment of up to ₹3,064.46 crore in equity in BCGCL, a joint venture with Coal India Limited.
Coal India will own 51% of the joint venture and BHEL will own 49% over the course of four years. The business is making a strategic move towards using coal in a way that adds value by planning to build a coal-to-ammonium nitrate facility with a daily capacity of 2,000 tonnes.
Additionally, pending the required clearances from the Department of Investment and Public Asset Management (DIPAM), the board of directors of BHEL has authorised the establishment of a new joint venture with Titagarh Rail Systems Limited to undertake the thorough maintenance of the Vande Bharat Sleeper trains.
In the wake of the disclosures, BHEL stock took a dive, touching 2.75 percent lower at ₹253 on the National Stock Exchange of India and finishing the week at more than 4.6% lower. Although the stock has risen 23% in the last 12 months, it is down 13.19% so far this year.
These developments occur in the midst of the government’s continuing divestment plan, which encompasses an OFS of a maximum 5% interest in BHEL, with a minimum share price of ₹254.
The power and industrial industries drove BHEL’s nearly tripling of standalone net profit to ₹382.49 crore in Q3 FY26, which is a positive development in terms of the company’s finances. The enhanced operating momentum was reflected in a 16.4% year-on-year growth in revenue from operations, reaching ₹8,473.10 crore.
