Penny stock hits 5% upper circuit after securing ₹40 Cr order from Central Railways

Synopsis: Jayant​‍​‌‍​‍‌​‍​‌‍​‍‌ Infratech’s stock hit 5% upper circuit after the company secured a Rs 40.55 crore railway electrification order from Central Railway.

The shares of this company engaged in the Railway Electrification & Infrastructure projects are in focus after the company secured a key contract, which accounts for almost half of its market capitalisation. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 92.3 crore, the shares of Jayant Infratech Ltd made a day high of Rs 89.25 per share (upper circuit), up 5 percent from its previous day’s closing price of Rs 85 per share. In the last one year, the stock has corrected by over 41 percent, as compared to NIFTY 50’s positive return of 5 percent.

About the Order

Jayant​‍​‌‍​‍‌​‍​‌‍​‍‌ Infratech Limited, through a stock exchange filing, announced that it has received a Letter of Acceptance by Central Railway for a railway overhead electrification project in the Kalyan–Karjat section (109 track km) of the Mumbai Division. 

The work comprises the supply, erection, testing, and commissioning to convert the existing unregulated 25 kV AC OHE system into a regulated OHE system. The total contract is valued at Rs 40.55 crore (inclusive of all duties and taxes), and the timeline for this project is up to December 11, 2027.

The management anticipates the project to contribute to revenue inflow and operational growth throughout the period of its execution, additionally, it will consolidate the company’s position in the railway electrification and infrastructure ​‍​‌‍​‍‌​‍​‌‍​‍‌sector.

Financial and Other Highlights

Jayant Infratech’s revenue for H1 FY26 came in at Rs 54.62 crore, down by 1 percent from Rs 55.14 crore in H1 FY25. Additionally, on a sequential basis, revenue declined by 18 percent from Rs 66.58 crore in H2 FY25. 

Coming to its profitability, the company reported a net profit growth of 60 percent to  Rs 4.54 crore in H1 FY26 as compared to Rs 2.84 crore in H1 FY25. However, on a QoQ basis, it recorded a decline of 18 percent from Rs 5.56 crore.

As of the latest filing available, the company has a total unexecuted order book of Rs 381.24 crore, which is over 3x of its FY25 revenue (Rs 122 crore), giving the company a good revenue visibility for the future.

Jayant​‍​‌‍​‍‌​‍​‌‍​‍‌ Infratech Ltd is a technology-driven infrastructure company focused on railway electrification and allied railway infrastructure projects. The company was incorporated in 2003. The company has progressively developed strong skills in the entire project lifecycle and is now able to provide end-to-end solutions right from the concept, design, and execution stages to testing, commissioning and energisation of railway electrification systems. 

Jayant Infratech has over 2 decades of experience, having electrified railway lines over thousands of kilometres and completed traction substation projects at various locations in India. Their work is aligned with the country’s initiative to reduce the use of fossil fuels and carbon emissions; therefore, the company is positioned as a major contributor to the Indian railway modernisation and electrification ​‍​‌‍​‍‌​‍​‌‍​‍‌drive.

Written by Satyajeet Mukherjee

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