A2Z Infra Engineering Stock Hits 10% Upper Circuit After ₹142 Cr Dues Settlement Plan with Indian Bank

Synopsis: Infra stock hit a 10% upper circuit after the company announced a Rs. 50 crore one-time settlement with Indian Bank, significantly reducing its Rs. 142.05 crore debt and strengthening its turnaround efforts.

The shares of this company are engaged in the Engineering, Procurement & Construction (EPC) space, offering services in power transmission & distribution, telecom infrastructure, and rural and railway electrification are in the spotlight after it hit 10% upper circuit in today’s session following the announcement of a one-time settlement with Indian Bank.

With a market capitalisation of Rs. 307 cr, the shares of A2Z Infra Engineering Ltd were trading at Rs. 17 per share, hitting an upper circuit of 10% in today’s market session, making a high of Rs. 17.44, up from its previous close of Rs. 15.86 per share. The stock has gained 1% over the past year and is up 7% year-to-date, has declined 8% in the last six months, while rising 21% over the past month. 

News

A2Z Infra Engineering Limited informed that it has entered into a full cash One Time Settlement (OTS) with Indian Bank to resolve outstanding dues. The total fund-based outstanding (excluding contingent bank guarantee liability of Rs. 14.40 crore) stood at Rs. 142.05 crore as of June 30, 2025, and the accounts had turned NPA.

As part of the approved OTS, the company will settle the Rs. 142.05 crore dues for Rs. 50 crore as a full and final payment. The board approved the settlement on February 24, 2026. The payment will be made in tranches, including Rs. 4 crore already deposited upfront, followed by scheduled payments within 15, 45, and 90 days from the acceptance date. In case of delay beyond 90 days, an additional 90-day cure period will be available with interest at 12.25% per annum on the delayed amount.

The company stated that this settlement is part of its broader debt reduction and turnaround strategy, having previously settled dues with other lenders under bilateral arrangements.

A2Z Infra Engineering Ltd is an Indian public engineering and infrastructure company. It operates primarily in the Engineering, Procurement & Construction (EPC) space, offering services in power transmission & distribution, telecom infrastructure, rural and railway electrification, and related areas, along with facility management and municipal solid waste management solutions. 

It reported improving operational momentum in Dec 2025. Revenue rose 29% YoY to Rs. 109 cr from Rs. 84.6 cr in Q3FY25, though slightly higher than Rs. 94.7 cr in Q2FY26. EBITDA showed sharp improvement to a loss of Rs. 0.48 cr, compared to a loss of Rs. 2.84 cr YoY, but declined sequentially from Rs. 5.55 cr. Net loss narrowed significantly to Rs. 0.63 cr from Rs. 0.92 cr. EPS stood at Rs. -0.04, decreasing from Rs. -0.03 in Dec 2024. 

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