Defence Stock in Which Both FIIs and DIIs Increased Their Stake in Q4 FY26

Synopsis:- FII stake rose to 7.23% while the whole of DII increased to 23.93% and MF to 12.88%, signaling strong institutional interest. Order inflows exceeded ₹35,000 crore with ₹2,19,600 crore backlog, alongside a ₹13,500 crore project win and margin improvement to 6%, indicating improving fundamentals.

India’s Heavy Electrical Equipment Components sector powers the nation’s energy and infrastructure growth. In FY26, peak power demand hits 277 GW, with installed capacity reaching 484,819 MW and transformation capacity targeting 197,617 MVA, fueled by renewables adding 13,908 MW in Q1. This drives robust demand for components amid a 14.3% CAGR projection.

With a market capitalization of Rs 1,07,613.17 crore, the shares of Bharat Heavy Electricals Ltd closed at Rs 309.05 per share, increased around 6 percent as compared to the previous closing price of Rs 292.45 apiece.

Institutional Inflow

Bharat Heavy Electricals Limited witnessed an increase in FII holdings from 6.28% in Dec 2025 to 7.23% in Mar 2026, indicating renewed foreign investor interest. This suggests improving confidence in the company’s outlook, supported by its strong order book and sector tailwinds, although investors may still remain cautious due to near-term execution and industry-related uncertainties.

On the other hand, domestic institutional interest strengthened significantly, as DII holdings increased to 23.93% in March 2026 from 19.70% in Dec 2025. Furthermore, mutual fund holdings rose from 8.84% to 12.88%, highlighting growing domestic confidence and a shift towards institutional stability.

Other Business Highlights

As per the recent investor presentation, Bharat Heavy Electricals Limited reported order inflows of over Rs 35,000 crore, with 73% coming from the power segment. The total outstanding order book stood above Rs 2,19,600 crore, dominated by 80% power projects, indicating strong visibility and continued dependence on the power sector.

Recently, Bharat Heavy Electricals Limited secured a major order worth over ₹13,500 crore from NTPC for a 3×800 MW Telangana Stage-II thermal project. The contract includes design, manufacturing, and commissioning, to be executed within 62 months, strengthening its order book visibility and reinforcing its leadership in India’s power equipment sector.

Additionally, Bharat Heavy Electricals Limited has entered into a technology collaboration with E2S Company Limited, South Korea, for excitation systems. This partnership strengthens its capabilities in design, manufacturing, and servicing of advanced systems, enhancing competitiveness. It also supports expansion in domestic and global markets while aligning with the government’s “Make in India” initiative.

The company delivered a strong performance, with revenue growing 16% from Rs 7,277 crore to Rs 8,473 crore, reflecting improved execution and demand. More notably, net profit surged 189% from Rs 135 crore to Rs 390 crore, indicating sharp margin expansion and operating leverage, highlighting a significant turnaround in profitability and overall financial strength.

Over the past year, Bharat Heavy Electricals Limited showed volatile but improving operating performance. Operating profit increased from ₹304 crore in Dec 2024 to ₹545 crore in Dec 2025, despite interim fluctuations. Meanwhile, OPM improved from 4% to 6%, indicating gradual margin recovery and better cost control, though consistency in profitability remains a key monitorable.

Bharat Heavy Electricals Limited is one of India’s largest engineering and manufacturing enterprises, primarily serving the power and infrastructure sectors. The company specializes in equipment for thermal, hydro, and renewable energy projects, supported by strong execution capabilities, a large order book, and a significant presence in domestic and international markets.

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