Infra stock in focus after securing orders worth ₹11.4 Cr from BPCL and other

SYNOPSIS:
Desco Infratech secured two O&M orders worth Rs. 11.4 crore, Rs. 9.92 crore from Avantika Gas for pipeline and PNG networks in Madhya Pradesh, and Rs. 1.44 crore from BPCL for PNG work in Punjab.

During Wednesday’s trading session, shares of an infrastructure company focused on engineering, planning, & construction are in focus on BSE, after the company announced securing orders from Bharat Petroleum Corporation Limited and Avantika Gas Limited.

At 11:16 a.m., the shares of Desco Infratech Limited were trading at Rs. 208.7 on BSE, as against its previous closing price of Rs. 211.7, with a market cap of Rs. 160 crores.

Desco was listed on the BSE SME platform on 1st April 2025, and has since delivered positive returns of more than 24 percent. The IPO received an overwhelming response, with an overall subscription of 83.75 times and a listing premium of 6.67 percent.

What’s the News

According to the latest disclosures filed with the BSE, Desco Infratech Limited has secured two new orders with a combined value of around Rs. 11.4 crores from Avantika Gas Limited and Bharat Petroleum Corporation Limited (BPCL).

The first order is a Letter of Intent (LOI) from Avantika Gas Limited (AGL), amounting to around Rs. 9.92 crores. Desco Infratech has been selected as the L1 bidder for the operation and maintenance (O&M) of steel and MDPE pipeline networks, as well as piped natural gas (PNG) connections (domestic, industrial, and commercial) across Indore and Pithampur in Madhya Pradesh.

The second order, valued at approximately Rs. 1.44 crore, is a Letter of Acceptance (LOA) from BPCL for the O&M of PNG domestic and commercial networks and connections in Anandpur Sahib City, Punjab.

Financials & More

Desco Infratech reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 83 percent, from Rs. 23 crores in H1 FY25 to Rs. 42 crores in H1 FY26. Likewise, the company’s net profit doubled during the same period, from Rs. 3 crores to Rs. 6  crores, reflecting an impressive rise of nearly 100 percent YoY.

Presently, Desco holds a robust order book of over Rs. 345 crore, comprising three key segments. The EPC segment forms the largest share at Rs. 326.6 crore, with an average execution timeline of around 18 months. The O&M segment contributes Rs. 12.22 crore, typically executed over 24 months, while the Power & Transmission segment accounts for Rs. 6.66 crore, with an execution timeline of 15-18 months. Overall, the company has bid for tenders worth Rs. 413.67 crore and maintains a healthy conversion ratio of 30-40 percent.

The company had initially guided around 20 percent growth in the Southern region; however, based on its strong order book and active execution pipeline, it now expects growth to exceed 40 percent, supported by robust customer traction and recent project wins. The long-term vision is to scale into a Rs. 1,000-crore company, backed by healthy margins and a well-diversified portfolio of projects.

Founded in 2011, Desco Infratech Limited operates as a diversified infrastructure company, with expertise spanning City Gas Distribution, power transmission, renewable-linked infrastructure, and water distribution systems.

Under the infrastructure services, the company specialises in the installation, testing and commissioning of piped natural gas (PNG) and MDPE pipeline networks for various user segments. The company also offers gas-leak detection and emergency response services to ensure uninterrupted supply and operational safety. 

Over the years, Desco has expanded into LT/HT power cable installation, water distribution systems and the renewable energy sector, widening its operational footprint across multiple regions.

Written by Shivani Singh

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