Rs 40,000 cr+ orders for BHEL alone: 5 stocks riding India’s thermal power expansion

On 13 October, the Central Electricity Authority (CEA) indicated that India could need an additional 105–150 GW of coal-based power capacity by 2035, compared with its earlier estimate of 97 GW.

Rising electricity demand and weaker hydropower generation are increasing dependence on thermal power. The need for reliable, round-the-clock electricity supply is also keeping thermal capacity expansion in focus.

This potential expansion could create fresh opportunities for companies manufacturing boilers, turbines, pumps and other thermal power equipment. Engineering and construction contractors could also benefit from new project orders.

However, not every company associated with thermal power is equally positioned to benefit from new capacity additions.

Why a 150-GW Coal Target Doesn’t Guarantee Easy Profits

To identify companies positioned to benefit from this expansion, we examined 10 listed companies with exposure to the thermal power sector. Our assessment focused on three criteria: direct involvement in new thermal power projects, orders secured during FY25–FY27, and the financial significance of those orders.

Five companies stood out with quantifiable orders linked to thermal power projects. These orders provide greater visibility into their participation in India’s potential capacity expansion.

However, securing orders does not guarantee profitability. Project execution, cost management and timely completion will determine how effectively these opportunities translate into earnings.

Let’s take a closer look at these five companies and their role in India’s next thermal power expansion.

#1 BHEL: Rs 13,500 Crore+ Thermal Order Strengthens Power Expansion Pipeline

Bharat Heavy Electricals (BHEL) manufactures boilers, turbines, generators and other equipment for thermal power plants. It also undertakes complete engineering, procurement and construction (EPC) contracts, giving it direct exposure to new coal-based capacity additions.

In March 2026, BHEL secured an order worth over Rs 13,500 crore from NTPC for the 3×800 MW Telangana Stage-II thermal power project. The contract covers equipment supply, civil works, installation and commissioning. Completion is scheduled within 62 months from the order award.

How a 57% Thermal Market Share Is Driving BHEL’s ₹2.57 Lakh Crore Order Book

According to its FY26 annual report, BHEL secured over Rs 40,000 crore in coal-based thermal orders during FY26, representing approximately 57% market share. The company also added 5,180 MW of domestic thermal utility capacity during the year.

On 14 October, BHEL’s board approved a Rs 500 crore investment to expand manufacturing facilities for thermal and nuclear power sets at its Haridwar unit.

In FY26, revenue from operations increased 19.2% YoY to Rs 33,782 crore, while net profit rose 207.6% YoY to Rs 1,578 crore. Higher project execution and improved operating performance supported growth.

BHEL’s Q2 FY27 results showed revenue rising 24% YoY to Rs 9,300 crore, while net profit increased 120% YoY to Rs 810 crore. EBITDA grew 69% to Rs 1,286 crore.

The quarter also saw the addition of 660 MW capacity at Unit 1 of the Udangudi thermal project in Tamil Nadu. BHEL’s outstanding order book reached Rs 2,57,571 crore as of September 2026, up 17.3% YoY.

However, executing large thermal contracts requires substantial working capital and timely project delivery. Cost overruns, supply disruptions and execution delays remain key risks despite the growing order book.

BHEL Financial Performance

Sources: BHEL FY26 Annual Report and BHEL Q2 FY27 Supplementary Information

In the past year, the share price of Bharat Heavy Electricals surged 87.3%.

Bharat Heavy Electricals 1-Year Share Price Chart

Source: Screener.in

#2 Larsen & Toubro: Rs 10,000 Crore+ Thermal Orders Strengthen Power Project Pipeline

Larsen & Toubro (L&T) has direct exposure to India’s thermal power expansion through its CarbonLite Solutions business. The company undertakes engineering, manufacturing and construction of boiler-turbine-generator (BTG) packages for coal-based power plants.

Its manufacturing facilities at Hazira are supported by joint ventures with Japan’s Mitsubishi Heavy Industries. These capabilities allow L&T to execute large ultra-supercritical thermal projects.

According to its FY26 annual report, L&T secured orders for multiple 800 MW ultra-supercritical projects in Bihar, Madhya Pradesh and Chhattisgarh. It also achieved commercial operations at the first unit of the Buxar project and the second unit of the Khurja project.

Inside L&T’s ₹62,000 Crore CarbonLite Order Book—And Why Clearances Matter

In July 2026, L&T secured a Rs 10,000–15,000 crore order mandate for NTPC’s 1,600 MW Lara Stage-III project in Chhattisgarh.

This was followed by another Rs 5,000–10,000 crore mandate for the 1,600 MW Chandrapura project in Jharkhand on 7 October. Both projects await environmental clearances before full notices to proceed.

The company’s July earnings call indicated that CarbonLite Solutions had an order book of approximately Rs 62,000 crore, with another Rs 70,000 crore in order prospects for the remaining FY27 period.

In FY26, consolidated revenue increased 11.8% YoY to Rs 2,85,874 crore, while net profit rose 7% YoY to Rs 16,084 crore.

L&T has yet to declare Q2 FY27 results, scheduled for 27 October.

However, pending clearances, project execution delays and cost pressures remain key risks. These could affect how quickly thermal orders translate into earnings.

Larsen & Toubro Financial Performance

Source: L&T FY26 Annual Report

In the past year, the share price of Larsen & Toubro is down 2.5%.

Larsen & Toubro 1-Year Share Price Chart

Source: Screener.in

#3 Thermax: Rs 1,600 Crore Boiler Order Strengthens Exposure to Thermal Power Expansion

Thermax manufactures boilers and provides energy and environmental solutions. Its wholly owned subsidiary, Thermax Babcock & Wilcox Energy Solutions (TBWES), supplies large boilers for power generation and industrial applications.

In March 2026, TBWES secured a Rs 1,600 crore order for an 800 MW ultra-supercritical thermal power plant in Central India. The contract covers manufacturing, supply, installation supervision, commissioning and performance testing of the boiler package. Delivery will follow contractual project milestones.

Why Thermax Is Chasing Supercritical Boilers While Avoiding Risky Civil EPC

Thermax’s FY26 annual report identifies the revival of utility-scale thermal projects as a growth driver for supercritical boilers.

TBWES recorded 9.7% revenue growth in FY26, while order bookings increased 37.9%. Thermax is also avoiding large EPC contracts involving lengthy civil construction, preferring projects with a stronger equipment supply component.

Group order bookings rose 34.2% to Rs 13,871 crore, while the outstanding order book reached Rs 13,604 crore.

In FY26, consolidated revenue increased 3.1% YoY to Rs 10,694 crore, while net profit rose 14.9% YoY to Rs 720 crore.

Thermax has yet to declare Q2 FY27 results, indicatively scheduled for the first week of November. In a recent Financial Express interview, MD and CEO Ashish Bhandari identified India’s thermal power expansion as a significant growth opportunity.

However, large boiler contracts carry execution risks. Supply disruptions, project delays and cost overruns could affect margins even as thermal equipment demand increases.

Thermax Financial Performance

Source: Thermax FY26 Annual Report.

In the past year, the share price of Thermax has risen 6.3%.

Thermax 1-Year Share Price Chart

Source: Screener.in

#4 Power Mech Projects: Rs 1,009 Crore Thermal Order Supports Expansion into Larger EPC Projects

Power Mech Projects undertakes construction, erection, testing, commissioning and maintenance of power plants. Its expertise covers boiler-turbine-generator (BTG) systems, civil structures and balance-of-plant infrastructure.

In June 2026, the company secured a Rs 1,008.9 crore order from JSW Thermal Energy. The contract covers civil and structural works for the BTG area of a 2×800 MW thermal project at Salboni, West Bengal. Execution is scheduled over 36 months.

From Subcontractor to Integrated EPC: Power Mech’s ₹17,317 Crore Backlog

According to its FY26 annual report, Power Mech also secured a Rs 2,550 crore balance-of-plant EPC contract from BHEL for the 800 MW Singareni thermal project. This marks its expansion from executing individual construction packages to undertaking integrated EPC contracts.

The company’s September investor presentation reported an order book of Rs 17,317 crore, excluding mining contracts. It is targeting two additional balance-of-plant EPC orders in FY27.

The presentation also states that, during Q2 FY27, Power Mech secured a Rs 970 crore thermal power O&M contract from Vedanta Power. Another Rs 279.2 crore contract covers coal and ash handling operations at Telangana’s Yadadri thermal station.

In FY26, consolidated revenue increased 15.8% YoY to Rs 6,061.6 crore, while net profit rose 18.5% YoY to Rs 411.7 crore.

The company has yet to declare Q2 FY27 results.

However, larger EPC contracts increase execution responsibilities. Project delays, material costs and working capital requirements remain important risks as Power Mech expands its thermal construction business.

Power Mech Projects Financial Performance

Source: Power Mech Projects FY26 Annual Report

In the past year, the share price chart of Power Mech Projects is down 12.9%.

Power Mech Projects 1-Year Share Price Chart

Source: Screener.in

#5 Kirloskar Brothers: Rs 214 Crore Thermal Pump Orders Support Power Sector Growth

Kirloskar Brothers manufactures pumps and fluid management systems for power, water, irrigation and industrial applications. Its exposure to thermal power comes through circulating water pumps and auxiliary cooling systems used in power plants.

In February 2026, the company secured orders worth Rs 214 crore from Adani Power and its subsidiaries. The contracts cover thermal projects in Madhya Pradesh, Assam, Chhattisgarh and Bihar. They include supply, installation, testing and commissioning of pumps and associated control systems, with execution scheduled over 18–24 months.

The company’s FY26 annual report also confirms orders for concrete volute pumps across six thermal projects. Total power-sector order bookings reached Rs 228 crore during the year.

Why Concrete Volute Pumps Are Kirloskar Brothers’ High-Margin Thermal Bet

Concrete volute pumps circulate large volumes of cooling water in power plants. Their lower maintenance requirements can make them suitable for continuous operations.

During its Q1 earnings call, management highlighted growing interest in these pumps for upcoming greenfield thermal projects. However, future orders remain dependent on project approvals and customer procurement schedules.

In FY26, consolidated revenue increased 1% YoY to Rs 4,538 crore, while net profit declined 9.9% YoY to Rs 377.3 crore.

Kirloskar Brothers has yet to declare Q2 FY27 results. Its August earnings call indicated that foundry improvements had been completed, with management expecting faster order dispatches during the September quarter.

However, the timing of new thermal orders remains uncertain. Project delays, raw material costs and overseas margin pressures could affect profitability despite growing demand for specialised pumps.

Kirloskar Brothers Financial Performance

Source: Kirloskar Brothers FY26 Annual Report

In the past year, the share price of Kirloskar Brothers is down 13%.

Kirloskar Brothers 1-Year Share Price Chart

Source: Screener.in

Beyond the Top Five: 3 More Thermal Power Stocks Worth Tracking

India’s thermal power expansion could also create opportunities for companies supplying specialised equipment and supporting systems. Three other listed players have relevant exposure, although their disclosures do not provide comparable values for orders linked specifically to new coal-based capacity.

Isgec Heavy Engineering manufactures boilers, pollution-control equipment and material-handling systems. It also undertakes EPC projects. Its capabilities position it to participate in new thermal projects, although its order book includes several other industries and equipment modernisation contracts.

WPIL manufactures engineered pumps used in power generation and irrigation. Its engineered-to-order segment revenue increased from Rs 133 crore in FY25 to Rs 184 crore in FY26. The company identifies power-sector demand as a key growth driver but does not separately disclose thermal-specific order values.

KSB supplies boiler-feed, cooling and other specialised pumps. It has secured orders associated with NTPC’s Nabinagar and Gadarwara power projects, including a high-pressure valve package through L&T-MHI Power. However, the company has not disclosed comparable contract values.

While these companies have exposure to thermal power, limited project-specific financial disclosures make it difficult to assess the potential earnings contribution from new capacity additions. They therefore remain relevant businesses to track beyond the five companies examined in detail.

The Execution Test: Why Debtor Days and Cash Flow Matter More Than Order Books

India’s potential thermal power expansion could create significant opportunities across the power equipment and construction supply chain. The five companies discussed have already secured orders linked to thermal power projects, providing some visibility into their participation in the next phase of capacity additions.

However, the scale and nature of these opportunities differ. While some companies undertake complete power plant projects, others supply specialised equipment or provide construction and maintenance services.

More importantly, large order books do not guarantee higher profits. Project approvals, execution timelines, raw material costs and working capital requirements will determine how effectively these orders translate into earnings.

Investors should therefore look beyond headline order values. Revenue growth, operating margins, cash flows and the pace of project execution remain important indicators. India’s thermal expansion may offer a long-term opportunity, but not every supplier will benefit equally.

How the Top 5 Thermal Power Stocks Compare on Margins and Working Capital

Sources: Screener consolidated financial data for BHEL, Larsen & Toubro, Thermax, Power Mech Projects and Kirloskar Brothers.

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Disclaimer

Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.

Disclosure: The writer and her dependents do not hold the stocks discussed in this article.

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