Afcons Infrastructure shares jump 4% on securing ₹6,800 crore contract

Shares of Afcons Infrastructure surged nearly 4% on Tuesday, extending gaining streak for the third straight session, after the company secured a new order worth ₹6,800 crore. The Shapoorji Pallonji group company has been declared the lowest bidder (L1) by HŽ INFRASTRUKTURA d.o.o. (HŽ Infrastructure Ltd) for rehabilitation & construction of a railway line in the Republic of Croatia.

Cheering the news, Afcons Infrastructure shares rose 3.74% to hit a high of ₹434.45 on the BSE, driven by surge in volume trade. Over 1.8 lakh shares changed hands over the counter so far as compared to two-week average of 0.82 lakh stocks.

At the time of reporting, Afcons Infrastructure share price was quoting at ₹426.85, up 1.9%, with a market capitalisation of ₹15,699 crore. The infra stock touched its 52-week high of ₹570 on January 3, 2025, and a 52-week low of ₹382.40 on April 7, 2025.

As per the release, the contract covers reconstruction of the existing and construction of a second track on the Dugo Selo-Novska railway line including overhead electrification and signalling & telecommunication works. The timeline for completion of the project is 72 months.

Last week, the company was declared the lowest bidder (L1) for two separate road construction packages awarded by Croatian Motorways in the Republic of Croatia. The first project includes the development of the Metković–Dubrovnik Sector, Subsection Rudine–Slano, which is part of the A1 Motorway connecting Zagreb, Split, and Dubrovnik. The estimated contract value, excluding taxes, stands at €240,593,861.40, approximately ₹2,398 crore.

The second project involves the Slano–Puo Mravinjac Subsection of the same A1 Motorway. This package is valued at €214,452,118.69, equivalent to around ₹2,137.44 crore. Both projects will follow the BOQ/item-rate contract model and have a completion timeline of 42 months from the commencement date post-award.

As of March 31, 2025, Afcons Infrastructure’s order book stood at ₹36,869 crore, which is 2.9 times its FY2025 revenue, offering medium-term revenue visibility, as per ICRA report. The company’s operating income (OI) has grown at a CAGR of 7.54% over the last five years, reaching ₹12,548.4 crore in FY2025, supported by a robust pickup in project execution.

Afcons’ order book is well-diversified across segments such as metro and urban infrastructure, tunnelling and hydro projects, surface transport, marine and industrial special projects, and oil & gas. In terms of geography, domestic projects across 15 states accounts for 86% of revenue, while international contracts comprise 14% of the order book. In terms of clientele, the top three customers make up 30% of the unexecuted order book as of March 31, 2025.

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