Smallcap Stock Jumps 9% After Securing ₹406 Cr Contract from Vedanta

Synopsis: A Bengaluru-based power services company has locked in a five-year operations contract worth over ₹406 crore from one of India’s largest natural resources conglomerates, reinforcing its revenue visibility and execution credentials in the thermal power segment.

The power sector has quietly been producing some of the steadier contract wins of the year, and the latest one comes from a company that has been building its operations and maintenance book with methodical precision. A fresh long-term deal just filed with the exchanges has put one midcap name firmly in focus.

Shares of Bluspring Enterprises Limited, with a market capitalization of Rs.1,663  Crore, are trading at a price of Rs.111.3 i.e. 3.11% up from its previous closing price of Rs.107.94. It made an intraday high of Rs.117.8 which is almost 9.5% above its previous close. It is trading at an Adjusted P/E ratio of 96.8. 

Bluspring Secures ₹406 Crore O&M Contract From Vedanta Power

Bluspring Enterprises Limited has announced that its wholly-owned step-down subsidiary, STEAG Energy Services (India) Private Limited, has received an extension of contract for Operations and Maintenance of a 600 MW thermal power plant from Vedanta Power Limited. The contract was originally awarded by Vedanta Limited and has now been formally renewed with the subsidiary. The disclosure was made to the exchanges on June 26, 2026, under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations.

The estimated aggregate contract value, including additional services, stands at Rs. 406.43 crore, plus applicable taxes. The contract will remain in force for a period of five years beginning July 1, 2026. This is a domestic engagement with no related party implications, and the filing confirms there is no promoter or promoter group interest in Vedanta Power Limited.

What the Contract Means for Revenue Visibility

For a company of Bluspring’s scale, a five-year contract of this size carries real weight. The annualised run-rate implied by the ₹406.43 crore deal works out to approximately ₹81 crore per year, which is meaningful when placed against the company’s FY26 consolidated revenue of ₹3,382 crore. While O&M contracts typically carry lower margins compared to project execution work, their long-duration, recurring nature adds a degree of earnings predictability that the market tends to reward.

STEAG Energy Services (India), the subsidiary executing this contract, brings operational expertise to large thermal power assets. Winning a contract renewal from a client of Vedanta Power’s standing also signals client satisfaction with past performance – a factor that tends to support future bidding prospects.

Financials Showing Early Signs of Turnaround

The contract announcement comes at a time when Bluspring’s financials are showing meaningful improvement. On a consolidated basis, revenue for FY26 came in at ₹3,382 crore, up 10% year-on-year from ₹3,086 crore in FY25. EBITDA grew 17% to ₹78 crore, while EBITDA margins expanded 15 basis points to 2.3%. The company swung from a PAT loss of ₹180 crore in FY25 to a PAT of ₹23 crore loss that has narrowed sharply, with adjusted PAT turning positive at ₹14 crore in FY26 versus an adjusted loss of ₹18 crore in the prior year – a 174% swing.

On a quarterly basis, Q4 FY26 revenue held steady at ₹865 crore, virtually flat sequentially against ₹863 crore in Q3 FY26, but up 8% year-on-year. Adjusted PAT for the quarter came in at ₹9 crore, up 39% quarter-on-quarter and 154% year-on-year, reflecting the gradual but consistent margin recovery underway.

About the Company

Bluspring Enterprises Limited is a Bengaluru-based integrated energy services company. Through its subsidiaries, the company provides operations and maintenance, engineering, and energy transition services to power utilities and industrial clients across India. Its step-down subsidiary STEAG Energy Services (India) specialises in thermal power plant O&M.

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