BHEL Share Price Rebound After Sharp Selloff as Company Secures ₹5,400 Crore Order

On January 9, 2026, at 10:45 IST, the stock was trading at ₹281.10, up ₹9.35 or 3.44%, as buying interest returned to the stock. The rebound follows the steep decline on January 8, when BHEL shares tumbled over 10% to ₹272 per share, after news reports indicated that India may scrap or ease curbs on Chinese firms bidding for government contracts. The development triggered a broad selloff in capital-goods stocks and dragged BHEL sharply lower during the session.

Government Policy Context

According to the reports, India is planning to ease restrictions on Chinese companies bidding for government contracts following recommendations by a high-level committee led by former cabinet secretary Rajiv Gauba. Existing curbs on Chinese power equipment imports have constrained India’s plans to expand thermal power capacity to about 307 GW over the next decade. The proposed move aims to address equipment shortages in the domestic power sector.

Fresh Order for BHEL

Investor sentiment improved after the company disclosed that it had secured a significant order. In an exchange filing dated January 8, 2026, BHEL announced receipt of an order from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India Limited (51%) and BHEL (49%).

According to the filing:

• Nature of Project: Letter of Acceptance (LOA) for Coal Gasification & Raw Syngas Cleaning Plant (LSTK 1 Package) for BCGCL’s Coal to 2000 TPD Ammonium Nitrate Project at Lakhanpur, Jharsuguda District, Odisha.
• Value of Order: Approximately ₹5,400 crore (excluding GST).
• Scope of Work: Design, Engineering, Supply of equipment, Civil Works, Erection, Commissioning and O&M Services.
• Execution Timeline:
  

  • 42 months for commissioning & performance guarantee test (Preliminary Acceptance).
  • 60 months of Operations & Maintenance services thereafter.

• Entity Type: Domestic tender awarded on nomination basis.
• Related Party Classification: The order qualifies as a related-party transaction and is executed at arm’s length, as BHEL is one of the promoter companies of BCGCL and serves as the executing agency in line with the Joint Venture Agreement.

BHEL Share Price Performance

Despite recent volatility, BHEL share price has delivered a 1-year return of 29.77% and a 5-year return of 613.60%, while the company’s market capitalisation stood at approximately ₹94,700 crore at the previous close.