PSU stock in focus after commencing supply of parts for Vande Bharat sleeper trains

SYNOPSIS: BHEL begins supplying underslung traction converters for Vande Bharat Sleeper Trains, marking its entry into semi-high-speed rail propulsion and strengthening Make in India capabilities across advanced rail technologies.

During Thursday’s trading session, shares of India’s leading manufacturing enterprise in the energy and infrastructure sectors are in focus on the stock exchanges, after the company announced the commencement of supply of semi-high-speed underslung traction converters for the Vande Bharat Sleeper Train Project.

At 01:49 p.m., shares of Bharat Heavy Electricals Limited were trading at Rs. 295.15 on BSE, compared to its previous closing price of Rs. 303.7, with a market cap of Rs. 1.02 lakh crores.

The stock has delivered positive returns of over 33 percent in one year, and has gained by around 9 percent in the last one month.

What’s the News

As per the disclosures with the latest stock exchanges, Bharat Heavy Electricals Limited (BHEL) has achieved a major milestone under its ‘Make in India’ initiatives for the rail transportation sector by commencing the supply of underslung traction converters for the Vande Bharat Sleeper Train project. The project is being executed by a BHEL-led consortium in partnership with Titagarh Rail Systems Limited (TRSL).

The propulsion system supports an operational speed of up to 160 kmph, with a design speed of 176 kmph. It also delivers high-efficiency power conversion, supported by advanced thermal management systems to ensure reliability and performance during long-distance overnight operations.

This development marks BHEL’s strategic entry into the semi-high-speed rail propulsion segment. The traction converters are being shipped to Kolkata for the final assembly of the Vande Bharat Sleeper Trains. Alongside this, key propulsion components, including traction motors and transformers, have been indigenously designed and manufactured at BHEL’s Bhopal and Jhansi facilities.

The trains are equipped with advanced IGBT-based traction converters, featuring an underslung configuration that positions propulsion equipment beneath the coach. This design frees up interior space for passenger amenities while also enhancing the train’s overall payload capacity.

Financials

Bharat Heavy Electricals Limited (BHEL) is an integrated power plant equipment manufacturer and is engaged in design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz, power, transmission, industry, transportation, renewable energy, water, oil & gas and defence & aerospace.

BHEL reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 14 percent, from Rs. 6,584 crores in Q2 FY25 to Rs. 7,512 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 106 crores to Rs. 375 crores, representing an impressive rise of nearly 254 percent YoY. The company will report its Q3 FY25 results on 19th January.

As of 31st March 2025, BHEL reported the highest-ever outstanding order book of Rs. 1,96,328 crore. The power segment dominates, accounting for Rs. 1,57,922 crore, or 80 percent of the total order book. This is followed by the industrial segment with Rs. 34,826 crore (18 percent), while exports contribute Rs. 3,580 crore (2 percent).

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