Patel Engineering shares jump 3% as it signs ₹1,700 Cr MoU for Gongri hydropower project in AP

Synopsis: Patel Engineering signed an MoU with the Arunachal Pradesh government to revive the 144 MW Gongri Hydropower Project, investing Rs. 1,700 crore under a BOOT model to boost clean energy and regional development.

This company is engaged in the construction of dams, bridges, tunnels, roads, piling works, and other heavy civil engineering projects across hydro, irrigation & water supply, urban infrastructure, and transport sectors is now in focus after signing a Memorandum of Understanding (MoU) with the Government of Arunachal Pradesh. 

With a market capitalisation of Rs. 3,108 cr, the shares of Patel Engineering Ltd are currently trading at Rs. 31.3 per share, increasing more than 3% in today’s market session, making a high of Rs. 31.89, from its previous close of Rs. 30.82 per share.

About the MoU

Patel Engineering Ltd has signed a Memorandum of Understanding (MoU) with the Government of Arunachal Pradesh for the restoration and development of the 144 MW Gongri Hydropower Project in West Kameng District. 

The Gongri project, located near Dirang town on the Gongri River in the Kameng basin, was earlier terminated but has now been revived under the Arunachal Pradesh Restoration of Terminated Large Hydropower Policy under Special Circumstances, 2025. It is the first project to be restored under this policy, following approval from the state cabinet.

The project involves an estimated investment of about Rs. 1,700 crore and is expected to be completed within four years. Patel Engineering will execute the project on a BOOT (Build Own Operate Transfer) basis with a 40-year lease period, after which ownership will be transferred to the Government of Arunachal Pradesh.

Under the MoU, Patel Engineering will handle the entire project lifecycle, including DPR preparation, design, engineering, construction, installation of turbines and generators, and development of transmission infrastructure. The project supports Arunachal Pradesh’s “Decade of Hydropower” vision and is expected to boost clean energy generation, create employment, and promote sustainable development in the region.

About the company 

Patel Engineering Ltd (PEL) is a 76-year-old infrastructure company with a strong focus on hydropower, tunnelling, and irrigation projects. The company has an established track record of successfully executing complex projects in both India and overseas markets.

PEL has completed more than 85 dams, 40 hydroelectric projects, and over 300 km of tunnelling, primarily for central public sector undertakings and state government authorities.

Sales increased to Rs. 1,208 crore from Rs. 1,174 crore in Q2FY25, reflecting a growth of about 3% YoY. EBITDA stood at Rs. 159 crore compared to Rs. 162 crore a year earlier, showing a marginal decline of around 2% YoY.

Net profit remained broadly flat at Rs. 73.0 crore versus Rs. 73.4 crore in the same quarter last year, indicating a slight dip of less than 1% YoY. Earnings per share declined modestly from Rs. 0.74 to Rs. 0.72, a drop of about 3% YoY, highlighting stable but muted profitability.

Written by Manideep Appana

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