Infra stock jumps after bagging ₹879 Cr order from NHAI

Synopsis: The shares of this small-cap construction company were in the news today after it received an order worth Rs 879.3 crore for a project in Tamil Nadu on hybrid annuity mode.

The shares of this company, which is presently in the business of development of infrastructure facilities on an Engineering Procurement and Construction basis (EPC) and undertakes contracts from various governments and other parties and special purpose vehicles promoted by the company, had its shares in the news today as the company announced its bagging of contract work for the project in Tamil Nadu. 

With a market cap of Rs 7,747 Crore, the shares of Dilip Buildcon Ltd closed at Rs 477. The shares have given a return of 33.66% in the last 5 years and are trading at a PE of 17.9, whereas their industry PE is 19.2

About the order

Dilip Buildcon Ltd has bagged a significant Rs 879.30-crore order from NHAI to upgrade the 46.665 km Paramakudi–Ramanathapuram section of NH-49 (New NH-87) in Tamil Nadu. The project involves turning this stretch into a full 4-lane highway, making it a meaningful addition to the company’s growing portfolio of national road projects.

The work will be carried out under the Hybrid Annuity Model (HAM), which is a mix of EPC (government-funded) and BOT (private-funded) models, giving the company 24 months to complete construction, followed by 15 years of operations once the road is opened to traffic. This structure not only ensures timely payments during the build phase but also provides stable, long-term annuity income, adding predictability to the company’s future cash flows.

For Dilip Buildcon, this order strengthens its position as a key player in national highway development and adds healthy visibility to its order book. The project also supports steady revenue generation over many years, helping the company maintain momentum in its core infrastructure business.

Financials and others

The revenue from operations is at Rs 1,926 crore in Q2 FY26 versus Rs 2,497 crore in Q2 FY25, which is a fall of about 23 percent YoY. Similarly, the net profit has also fallen by about 20% when we compare the Q2 FY25 profit of Rs 266 crore with the Q2 FY26 profit of Rs 214 crore. 

The company currently has a strong and well-spread order book of Rs 18,610 crore, covering a wide range of infrastructure segments. Irrigation and mining make up the biggest contributions, at 26% and 22%, respectively, followed closely by road at 14%. Tunnel projects add another 10%, while the rest comes from , metro and rail work, special bridges, optical fibre, renewable energy, and urban development. This balanced mix shows that the company isn’t reliant on any single vertical, giving it healthier visibility and protection against slowdowns in any one sector.

Looking at project type, the majority of orders, which is 75%, are EPC contracts, which bring steady execution-driven revenue. The remaining 25% are HAM projects, offering longer-term annuity income once completed. Together, this blend of EPC and HAM ensures both near-term revenue momentum and predictable cash flows in the years ahead, positioning the company for stable, sustainable growth.

Dilip Buildcon Limited is one of India’s most prominent EPC companies, widely recognised for its role in building the nation’s infrastructure. The company began with highway construction but has steadily expanded into areas like irrigation, water supply, tunnels, special bridges, and even coal mining to ensure a more stable and diversified business. 

Known for its emphasis on transparency, quality, and a respectful working environment, DBL focuses on building strong relationships with clients, employees, vendors, and communities. With a broad presence across multiple sectors and the capability to execute large, complex projects, the company has earned its reputation as a dependable and forward-looking player in India’s construction landscape.

Written by Leon Mendonca

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Infra stock jumps after bagging ₹879 Cr order from NHAI appeared first on Trade Brains.