Bharat Heavy Electricals Ltd

Dear Shareholders,

On behalf of the Board of Directors, I have the privilege of presenting the 61st Annual Report of the Company for the financial year 2024–25. During the year, your Company strengthened its performance across business segments, supported by renewed activity in the thermal power sector, consistent execution, and stable macroeconomic conditions.

Your Company maintained its leadership in the power sector by securing 14.6 GW of thermal orders from public and private utilities. Major transmission packages and a strong showing in the industry segment complemented this performance. Revenue increased by 19%, supported by a record order inflow and tighter project execution.

Let me share with you the key performance highlights:

• We achieved our highest-ever order inflow of D92,535 Crores in FY 2024-25, and closed the year with a record order book of D1,96,328 Crores, ensuring strong revenue visibility

• In the power sector, orders worth D81,349 Crores were secured, including D76,930 Crores from thermal power plant business.

• The industry sector contributed D11,001 Crores of orders, including a major ?800 kV, 6000 MW HVDC order for the Khavda–Nagpur link

• Revenue from Operations grew by 19% to D28,339 Crores, with Profit After Tax of D513 Crores and EBITDA of D1,745 Crores

• Over 3 percentage points reduction in direct material costs was achieved through procurement consolidation, vendor expansion and design rationalization

• Project execution covered about 8.1 GW of capacity addition, commissioning, and synchronisation across India and overseas

• Cash collection rose by 20% over billing, resulting in a net cash surplus of D1,977 Crores

• Delivered the 45th Steam Generator for the GHAVP Nuclear Power Plant, the highest by any manufacturer in India

• Developed and tested India's highest-rated 240 MW Francis Turbine model for NHPC's 12?240 MW Dibang hydroelectric project

• Commissioned three units of the 6?170 MW Punatsangchhu-II hydro project in Bhutan

• Supplied a tri-metallic main fractionator column for HPCL's Rajasthan Refinery, demonstrating fabrication capability for critical process equipment

• Delivered and commissioned the first upgraded Super Rapid Gun Mount onboard INS Nilgiri, supporting India's naval readiness

The government's continued emphasis on energy security was reflected in sustained thermal power tendering. Your Company responded by strengthening EPC readiness, standardising design templates, and enhancing vendor capabilities to meet the demand pipeline.

In nuclear energy, BHEL is positioned to contribute meaningfully to India's long-term goals, with the national target of 100 GW by 2047 and development of Small Modular Reactors by 2033. The Company's track record in nuclear steam generators and turbine systems supports this strategic direction.

During the year, BHEL and Coal India Ltd established a joint venture, Bharat Coal Gasification and Chemicals Ltd, to develop domestic coal-to-chemical capacity and reduce import dependency in fertilisers and industrial feedstocks.

In the transmission sector, BHEL secured major order for HVDC terminal stations on the Khavda–Nagpur corridor, marking continued growth in its advanced grid portfolio. In parallel, the Company signed strategic partnership agreements in rail transportation, renewables, and defence systems to support diversification goals and long-cycle businesses development.

One manufacturing unit received the CII EXIM Bank Business Excellence Award 2024, while five others were recognised with Platinum rating. The Company achieved a 7% reduction in emission intensity and expanded captive solar capacity to 42 MWp. Over 85,800 saplings were planted during the year. Two additional manufacturing units were assessed for GreenCo certification by CII, bringing the total to seven units with formal environmental ratings.

We are committed to ensuring effective compliance with corporate governance norms and uphold strong governance practice with a view to protect the interest of all stakeholders.

I extend my sincere thanks to our customers, partners, employees, the Board of Directors, and the Ministry of Heavy Industries for their continued support and guidance. I also thank you, our shareholders, for your trust and support. With a solid order book, sharper execution, and strategic clarity, your Company is well positioned to address national priorities and deliver long-term value.

Warm regards,