BHEL shares slip 1% after major fire errupts at Bhopal plant

Shares of Bharat Heavy Electricals Ltd (BHEL) came under pressure on Wednesday, April 24, after a massive fire broke out at its Bhopal manufacturing unit, one of the oldest and most critical facilities of the company.

The stock slipped over 1 per cent in early trade, touching an intraday low of Rs 227 per share, as concerns mounted over the likely disruption in operations and short-term production output. The counter saw heavy volumes, with more than 1 crore shares traded on NSE by mid-session.

Fire engulfs section of historic BHEL plant

The fire incident occurred at the BHEL Bhopal unit, a cornerstone facility in the company’s heavy electrical equipment production infrastructure. Visuals widely shared on social media showed thick plumes of black smoke rising from the site, triggering alarm over the extent of the damage.

#WATCH | Bhopal, Madhya Pradesh: A huge fire broke out in the BHEL (Bharat Heavy Electricals Limited) premises. The cause of the fire is yet to be ascertained. Fire-fighting operations are underway. Further details are awaited. pic.twitter.com/q5G7p1ESdW

— ANI (@ANI) April 24, 2025

While the exact cause of the fire is still under investigation, fire-fighting teams were immediately deployed. According to reports, no injuries have been reported so far. The fire has since been brought under control, an official told PTI, adding that the extent of damage is being assessed.

Impact of fire 

Analysts believe that even a brief disruption at the Bhopal plant, given its legacy and importance in the supply chain, could have short-term implications on BHEL’s delivery schedules, especially for ongoing power sector projects. The Bhopal unit manufactures a wide range of electrical and mechanical equipment for power generation, transmission, transportation, and industry applications.

Any operational setback here may weigh on Q1FY26 performance, especially if repairs and maintenance extend into the coming weeks.

Market Outlook

BHEL stock, which has delivered strong gains over the past 12 months, is now expected to be volatile in the near term. On a year-to-date basis, the counter remains up over 40 per cent, supported by order inflows and turnaround in PSU sentiment. However, the current incident could dent sentiment temporarily until clarity emerges on the extent of production loss and repair timelines.

Investors will closely track an official statement from the company management regarding asset damage, production downtime, and contingency plans.