Bharat Heavy Electricals Limited (BHEL) signs a Technology Transfer Agreement with Bhabha Atomic Research Centre (BARC) for indigenous hydrogen production technology. The pact aims to boost green energy initiatives.
On April 16, 2025, Bharat Heavy Electricals Limited (BHEL) announced a pivotal development in its commitment to supporting the government’s push for green energy. The state-owned company revealed that it had entered into a Technology Transfer Agreement (TTA) with the Bhabha Atomic Research Centre (BARC).
This agreement is set to play a crucial role in BHEL’s strategy to achieve complete indigenous development of alkaline electrolyser systems for hydrogen production. The technology transfer aims to foster innovation in the area of electrochemical cells, aligning with national sustainability goals.
One of the central elements of the pact is BARC’s Mixed-matrix membrane diaphragm technology. This technology is considered a game-changer for the electrolyser industry, replacing the traditionally used asbestos diaphragm material.
The new membrane technology offers a more cost-effective and efficient alternative, with the potential to reduce reliance on imports, particularly for Zirfon—an expensive material currently used in water electrolysers. This shift could substantially lower costs for the development of water electrolysers in India, thereby supporting the country’s green energy transition.
BHEL’s involvement in this agreement also represents a significant step towards fulfilling its commitment to the government’s National Green Hydrogen Mission. The company is set to contribute to the growth of the green hydrogen sector by leveraging indigenous technologies and reducing the need for foreign imports.
In addition to supporting the green hydrogen initiative, this partnership will enhance BHEL’s alignment with the ‘Make in India’ programme, reinforcing the company’s role in driving India’s self-reliance in cutting-edge technology.
Following the announcement, BHEL’s shares experienced a modest increase in value. On the same day, the stock closed at ₹225.25 on the National Stock Exchange (NSE), marking a 1.56% rise. Investors have shown confidence in the company, with shares up more than 5% over the past week and nearly 10% over the past month. Despite this positive short-term movement, BHEL’s stock has faced challenges over the longer term, with a decline of 16.45% over the past six months.
Technically, BHEL’s stock is trading above its short- to mid-term moving averages, but it remains below its 150-day and 200-day moving averages, indicating a degree of volatility. Analysts have noted that while the stock presents high short-term potential, its long-term performance will depend on how well BHEL executes its green hydrogen plans and scales up production capabilities.
This agreement with BARC is not the only strategic move for BHEL in recent months. The company has also entered into a Memorandum of Understanding (MoU) with Nuovo Pignone International, further expanding its footprint in the Indian fertiliser sector.
These moves suggest that BHEL is not only focusing on energy but also diversifying its portfolio to tap into other critical industries. This multi-pronged approach aligns with the company’s broader vision of enhancing its manufacturing capabilities and becoming a global leader in technological innovations.
From a financial perspective, BHEL’s latest figures highlight a mixed performance. While the company continues to maintain a healthy dividend payout ratio of 27.8%, it has shown signs of weakness in some areas.
The company has experienced a 4.73% decline in sales growth over the last five years and continues to face challenges such as a low Return on Equity (ROE) of just 1.77%. Furthermore, its debt-to-equity ratio and increasing debtor days have raised concerns among investors about the company's long-term financial stability.
That said, the agreement with BARC could significantly improve BHEL’s financial outlook, provided the company can successfully integrate and scale up its new technology for hydrogen production. The potential for growth in the renewable energy sector, especially green hydrogen, offers considerable promise for the company.
At 10:25 AM on April 17, 2025, the shares of Bharat Heavy Electricals Limited are trading at ₹226, up by 0.11% compared to the previous close of ₹225.25 per share on the NSE.
This minor uptick in stock price follows the announcement of the Technology Transfer Agreement with BARC. The agreement is expected to significantly enhance BHEL’s capabilities in green hydrogen production and support the government’s sustainability goals. Investors will be keeping a close eye on how BHEL capitalises on this new technology and its ability to execute on long-term growth prospects.
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