| There has been no official notification from the government on easing restrictions for Chinese manufacturers so far. However, media reports indicated that in the transmission and high-voltage equipment segment, a Chinese manufacturer may be permitted to participate in bidding processes starting FY27.
According to the reports, Chinese power equipment maker TBEA has been approved to bid in certain high-voltage reactor categories, including power transmission projects, from the financial year beginning 2027.
The reports added that restrictions have not been fully lifted. Any potential participation would be limited to future bids, with no immediate risk of a surge in imports. Capacity constraints in the transmission space have pushed up pricing sharply in recent years, and the entry of additional players could cap further upside.
Stocks across the high-voltage and extra-high-voltage segment also saw pressure. Names such as Hitachi Energy India (-5.43%), GE Vernova T&D India (-3.12%), Transformers and Rectifiers India (-2.72%) and CG Power and Industrial Solutions (-0.83%) declined.
Market participants expect valuations in the capital goods space to adjust to rising competition. However, the near-term impact on earnings is seen as limited, as domestic capacities remain constrained and pricing discipline is unlikely to weaken sharply in the immediate term.
BHEL is an integrated power plant equipment manufacturer catering to sectors such as power, transmission, transportation, renewable energy, oil and gas and defence. The company reported a 253.17% YoY jump in consolidated net profit to Rs 374.89 crore in Q2 FY26, while revenue rose 14.06% to Rs 7,511.80 crore.
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