Stock Jumps 8% After Receiving ₹738 Cr Order from Rajasthan Govt. for Water Supply Project

Synopsis: Shares of this infra stock rose 8% after winning a Rs. 738.61 crore JICA-funded Rajasthan water supply project, involving the construction and maintenance of a Narmada-based system for 275 villages.

The shares of this infrastructure and construction company, which is engaged in manufacturing and laying pipelines for water supply, irrigation, and sewerage systems are in the spotlight after it rose by 8 per cent in today’s market session following securing an order worth Rs. 738.61 crore.

With a market capitalisation of Rs. 1,870 cr, the shares of Indian Hume Pipe Company Ltd were trading at Rs. 355.05 per share, jumping 8% in today’s market session, making a high of Rs. 361.55, up from its previous close of Rs. 333.70 per share. The stock declined 21% over the past year and is down 12% year-to-date. It also fell 16% in the last six months, though it has rebounded with a 17% gain in the past month.

About the order

The Indian Hume Pipe Company Ltd has secured a Letter of Acceptance (LOA) worth Rs. 738.61 crore (including GST) from the Public Health Engineering Department (PHED), Government of Rajasthan. The contract has been awarded under the Japan International Cooperation Agency (JICA)-funded Rajasthan Rural Water Supply & Fluorosis Mitigation Project Phase II.

The project involves the design, construction, operation, and maintenance of a Narmada-based water supply system for 275 villages across the Dhorimanna and Chouhtan blocks in Barmer district, Rajasthan. It aims to strengthen rural water infrastructure and improve access to safe drinking water in the region.

The company is required to complete the project within 24 months, followed by a one-year defect notification period and a 10-year operation and maintenance (O&M) responsibility. 

Indian Hume Pipe Company Ltd is an Indian infrastructure and construction company engaged in manufacturing and laying pipelines for water supply, irrigation, and sewerage systems. It also undertakes civil construction projects such as dams, tunnels, and other public utility infrastructure. 

As of Q4FY26, sales of the company increased from Rs. 282 crore in Q3FY26 to Rs. 351 crore in Q4FY26. Operating profit also jumped to Rs. 38 crore from Rs. 22 crore. Net profit declined from Rs. 62 crore to Rs. 23 crore over the same period.

As of 6 May 2026, the company’s estimated balance order book stood at Rs. 4,118.97 crore, up from Rs. 4,002.48 crore as of 8 May 2025, indicating a healthy pipeline of ongoing projects. Additionally, the company has emerged as the lowest bidder (L1) for a project worth Rs. 625.94 crore, which is expected to further strengthen its order book upon formal award.

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