Infra stock skyrockets 16% after Defence Min. inaugurates India’s longest precast tunnel built by the Co.

Synopsis: The newly inaugurated 920 metre long cut-and-cover tunnel built at a high altitude to enhance troop mobility and logistical support by SRM Contractors Ltd gained investor confidence rasing the share price by 16 percent.

Infrastructure firm engaged in the construction of roads, including bridges, tunnel works saw its shares soar upto 16 percent after Defence Minister Rajnath Singh inaugurated India’s longest precast cut-and-cover tunnel built by the firm, gaining investor attention.

With a market cap of Rs 1,129 Cr SRM Contractors Ltd saw its stock hit an intraday high of Rs 503.6, which is 6.7 percent higher than the previous close of Rs 471.9.

What’s the News?

On 7th December 2025 the Defence Minister Rajnath Singh inaugurated India’s longest Precast Cut and Cover tunnel built by SRM Contractors Ltd. The tunnel measures 920 metres long, and is at an altitude of 12,300 feet. Being located in a sensitive border region, this project is expected to significantly boost troop mobility, logistics, disaster response and civilian connectivity. SRM Contractors reaffirmed its commitment to deliver mission critical infrastructure that improves national security and supports seamless movement in challenging terrains.

This tunnel is a key part of the 125 BRO projects, which spans across Ladakh, Jammu & Kashmir and seven other states, marking the highest-value rollout in BRO’s history at Rs 5,000 crore. The projects include 28 roads, 93 bridges and critical upgrades that boost defence mobility, improve last-mile access to remote villages, and enhance socio-economic development. Rajnath said these strategic assets strengthen border security, support rapid troop deployment, and align with the government’s Viksit Bharat vision.

Financial Overview

In the latest quarter SRM Contractors Ltd saw a YoY revenue growth of 116 percent, going from Rs 95 Cr in Q2FY25 to Rs 206 Cr in Q2FY26, while the QoQ went up by 45 percent from Rs 142 Cr in Q1FY25.

The YoY Net Profits growth is at 200 percent, going from Rs 10 Cr in Q2FY25 to Rs 20 Cr in Q2FY26, while the QoQ growth stood at 53 percent from Rs 13 Cr in Q1FY25.

Some other points to highlight is that, the company also has a 3 year profit CAGR of 46 percent. The stock has gone up by more than 55 percent in a year. And the company has a ROCE of 33.2 percent and ROE of 27.2 percent.

Headquartered in Jammu, India, SRM Contractors Ltd was incorporated in 2008 as an infrastructure construction company specializing in road development, including bridges, tunnels, and slope-stabilisation works.

Written by -Adithya Menon

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