BHEL, Nuovo Pignone Sign 10-Year Deal for Compressor Revamps
POWER & RENEWABLE ENERGY

BHEL, Nuovo Pignone Sign 10-Year Deal for Compressor Revamps

Bharat Heavy Electricals Ltd (BHEL) has entered into a strategic Memorandum of Understanding (MoU) with Italy-based Nuovo Pignone International s.r.l. to jointly explore compressor revamp opportunities in India’s fertiliser sector. The agreement, signed on April 9, 2025, will remain in force for 10 years, with a provision for extension by mutual consent.

Under the MoU, BHEL will take the lead role in bidding for targeted compressor train revamp projects, while Nuovo Pignone will serve as the nominated vendor with a clearly defined scope of work. The agreement does not involve any equity transfer or the formation of a joint venture, and no upfront payments have been exchanged.

The collaboration is expected to enhance BHEL’s market share in the fertiliser sector’s maintenance and repair segment, with the company targeting up to 50 per cent of the business share in financial terms.

Financially, BHEL reported strong year-on-year growth in the third quarter. Net profit rose 170 per cent to ?124 crore, while revenue climbed 32 per cent to Rs 72.77 billion. While revenue exceeded analyst expectations, net profit fell short of the Rs 1.75 billion estimate.

EBITDA rose 40 per cent to Rs 3.04 billion, with margins improving to 4.2 per cent from 3.9 per cent a year ago. However, gains were tempered by a sharp increase in other expenses.

Order inflow during the quarter surged by 167 per cent to Rs 68.60 billion, and BHEL’s total order book rose 47 per cent year-on-year to Rs 1600 billion. Revenue from the power segment increased by 32 per cent to Rs 55.88 billion, while industrial segment revenue was up 33 per cent at Rs 16.88 billion. Both segments reported margin expansions on an annual basis.

Shares of BHEL closed at Rs 211.80 on the BSE, up 0.40 per cent for the day.

Bharat Heavy Electricals Ltd (BHEL) has entered into a strategic Memorandum of Understanding (MoU) with Italy-based Nuovo Pignone International s.r.l. to jointly explore compressor revamp opportunities in India’s fertiliser sector. The agreement, signed on April 9, 2025, will remain in force for 10 years, with a provision for extension by mutual consent. Under the MoU, BHEL will take the lead role in bidding for targeted compressor train revamp projects, while Nuovo Pignone will serve as the nominated vendor with a clearly defined scope of work. The agreement does not involve any equity transfer or the formation of a joint venture, and no upfront payments have been exchanged. The collaboration is expected to enhance BHEL’s market share in the fertiliser sector’s maintenance and repair segment, with the company targeting up to 50 per cent of the business share in financial terms. Financially, BHEL reported strong year-on-year growth in the third quarter. Net profit rose 170 per cent to ?124 crore, while revenue climbed 32 per cent to Rs 72.77 billion. While revenue exceeded analyst expectations, net profit fell short of the Rs 1.75 billion estimate. EBITDA rose 40 per cent to Rs 3.04 billion, with margins improving to 4.2 per cent from 3.9 per cent a year ago. However, gains were tempered by a sharp increase in other expenses. Order inflow during the quarter surged by 167 per cent to Rs 68.60 billion, and BHEL’s total order book rose 47 per cent year-on-year to Rs 1600 billion. Revenue from the power segment increased by 32 per cent to Rs 55.88 billion, while industrial segment revenue was up 33 per cent at Rs 16.88 billion. Both segments reported margin expansions on an annual basis. Shares of BHEL closed at Rs 211.80 on the BSE, up 0.40 per cent for the day.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code