India’s focus on infrastructure remains strong, with the Union Budget 2025-26 allocating ₹11.21 lakh crore (~ US$128.6 billion) for capital projects.
As the government and private sector invest heavily in roads, railways, power and urban development, BHEL and L&T emerge as two engineering giants. Both secure projects through competitive bidding.
But who’s better positioned to ride this infrastructure wave? Let’s find out in this blog.
BHEL and L&T: History and background of India’s engineering giants
BHEL, registered in 1956, is a centrally owned PSU that manufactures heavy electrical equipment like boilers, turbines, transformers, etc, primarily for thermal, hydro and nuclear power plants. It also works in defence, transport and renewables but remains heavily reliant on government orders.
L&T was founded in 1938 by Danish engineers and is privately held, with a much more diversified portfolio including EPC or Engineering, Procurement, Construction across infrastructure, energy, urban infrastructure, manufacturing and global operations. L&T is less dependent on a single domain and more nimble in execution.
BHEL vs L&T financial comparison
As seen in the table below, L&T recorded order inflows of ₹3,57,000 crore in FY25, while BHEL secured ₹92,534 crore during the same period. L&T’s total order book stood at ₹5,79,137 crore, almost three times BHEL’s ₹1,96,328 crore as of FY25.
L&T clearly leads in scale, revenue, profitability and efficiency. Its diversified portfolio also gives it exposure to a larger share of the government’s total CAPEX pie.
| Criteria | BHEL | L&T |
| Total Order Book (FY25) | ₹1,96,328 crore | ₹5,79,137 crore |
| Order Inflow (FY25) | ₹92,534 crore | ₹3,57,000 crore |
| Revenue from operations (FY25) | ₹28,339 crore | ₹255,734 crore |
| PAT(FY25) | ₹534 crore | ₹17,673 crore |
| Market Cap | ₹81,793 crore | ₹5,16,212 crore |
| Share Price (Oct 2025) | ~₹260 | ~₹4000 |
| ROE (FY25) | 2.15% | 15.39% |
| ROCE (FY25) | 3.60% | 14.89% |
As of October 2025 BHEL share price was around ₹235. Meanwhile, L&T share price was around ₹3,800.
Investors should consider all these factors to make an informed decision on which stock they want to invest in and which stock align with their preference and risk appetite.
BHEL and L&T FY25 project portfolio
In the table below, you can see the projects secured by BHEL (FY25 Q4) and L&T (FY25 Q4), where BHEL primarily focuses on government-led power and defence projects. At the same time, L&T demonstrates a more diversified portfolio spanning power, infrastructure and green initiatives.
| Sector / Segment | BHEL (FY25 Q4 Orders) | L&T (FY25 Q4 Orders) |
| Thermal Power | Large govt. thermal plants: Adilabad, Ukai, Hasdeo, Koradi, Raghunathpur, Yadadri TPS | Executing the Nabha Power Plant project |
| Hydro / Renewable | ~42 MWp solar capacity; smaller renewable & sustainability projects | Completed a breakthrough in Tunnel No. 8 of the 14.57 km Rishikesh Karnaprayag Broad Gauge Rail Link Project |
| Environmental / Green | Harit BHEL: 3.86 lakh+ saplings, Miyawaki forests, zero effluent campuses | Working on CarbonLite Solutions, Green Hydrogen BOO and Offshore Wind projects |
Conclusion
BHEL and L&T are key players in India’s infrastructure growth. L&T leads with diversification, financial strength and global exposure. BHEL holds its ground in power and defence with solid government backing. While L&T may look stronger financially but BHEL remains important for strategic projects. Together, they power India’s next phase of infrastructure expansion.