₹5,250 Cr order from Adani and REC Power; Infra shares surge 5.5%

Synopsis: Dilip Buildcon Ltd shares in focus after informing the exchanges that it has been declared as a L1 bidder by RECPDCL of a project worth Rs. 1850 Crores and it has also received a work order of Rs. 3400 Crores from Adani Road Transport Limited. 

The shares of this EPC stock majorly engaged in development of infrastructure facilities on Engineering, Procurement and Construction, were in focus after receiving 2 significant work orders from Adani Road Transport Limited and REC Power.

With the market capitalization of Rs. 7,769 Crores, the shares of Dilip Buildcon has reached an intraday high of Rs. 491.7 per equity share which is 5.5  percent more from its previous day close of Rs. 465.7 per equity share. 

What is the NEWS: 

Dilip Buildcon has recently informed the exchange that it has received a work order from Adani Road Transport Limited for the construction of a road spanning a total length of 41.09 Kilometers. The total cost of the project is Rs. 3400 crores (excluding GST) which involves construction of the Ganga Path connecting Sultanganj Bhagalpur and Sabour Road whose construction timeline is 42 months from the commencement date.

The company will execute the project under EPC model where the company will be responsible for designing, engineering, procurement of materials, construction, testing and commissioning of road project.

Additionally the company is being declared as L1 bidder by REC Power development and consultancy Limited (RECPDCL) for a power transmission project in Belagavi district, Karnataka. The project involves establishment of 400/220/33 kV sub station at Mekhali, along with associated 400kV and 220kV transmission lines.

The project will be executed under the build, own, operate and transfer(BOOT) model under the Tariff based competitive Bidding(TBCB) route and TSA, where the company will develop, finance, construct, own and operate the transmission assets for a fixed period after which the assets will be transferred to back as per agreement. The project must be completed in 24 months with a concession period of 35 years from the Commercial Operation Date (COD). 

About the Company and Financials: 

Dilip Buildcon Ltd is majorly engaged in the development of infrastructure facilities on engineering, procurement and construction across various business divisions which includes Roads & Highways, Irrigation, Mining, Tunnel etc.

The company has recently won over 6 projects worth Rs. 5665 Crores and has an order book of over Rs. 18,610 Crores as of Q2FY26, out of which Roads and Highways contribute ~14.02 percent, Irrigation ~25.89 percent, mining 21.96 percent, Tunnel 9.93 percent and various other business divisions contribute remaining of total work orders. 

Year on Year analysis: Revenue from operations has decreased from Rs. 2497 crores to Rs. 1926 Crores, down 22 percent. Operating profit has decreased from Rs. 535 Crores to 471 Crores, down 12 percent and net profit has decreased from Rs. 266 Crores to 214 Crores, down 19.5  percent. 

Quarter on Quarter analysis:  Revenue from operations has also decreased from quarterly basis from Rs. 2620 Crores to 1926 Crores, down 26 percent. Operating profit has decreased from Rs. 521 Crores to 471 Crores, down 10 percent and net profit has decreased from Rs. 271 Crores to 214 Crores, down 21 percent. 

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