The shares of the prominent infrastructure company hit 10 percent upper circuit after the company bagged a prestigious work order from the Government of Andhra Pradesh worth Rs 9,000 crore.
With a market capitalization of Rs 4,668.17 crore, the shares of Bondada Engineering Ltd were trading at Rs 425.05 per share, increasing around 9.99 percent as compared to the previous closing price of Rs 386.45 apiece
Government Order
The shares of the company have seen bullish movement after Bondada Engineering Ltd. is developing a 2000 MW AC / 2600 MWp DC renewable energy project in Andhra Pradesh, with Rs 9,000 Cr approved investment. Executed through its subsidiary, the project aligns with AP’s Clean Energy Policy 2024 and supports India’s Net-Zero goals across multiple locations in the Ananthapuramu district.
The project benefits from land lease subsidies, evacuation support, and MNRE eligibility, with a 24-month completion. Executed via Bondada Renewable Energy Pvt Ltd., it targets 1000 MW IPP by FY2028, Rs 9,000 Cr EPC revenue, and Rs 1,160 Cr annual IPP revenue from FY2029, with a Rs 14,000+ Cr cumulative order book.
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Management Outlook and Guidance
Bondada reports a robust order pipeline, actively bidding for over ₹1,000 crore in BESS tenders, along with large solar, telecom, and railway projects. It is in advanced talks with Adani Group for partial EPC solar orders. Management denies any slowdown, highlighting strong tendering activity across all segments.
Management targets 50–60% CAGR over the next 3–5 years, aiming to double revenues annually and reach Rs 1 billion by 2030. Margins are expected to stay stable or improve, supported by scale and high-margin segments like railways and BESS. No major capex is planned due to sufficient factory utilization.
Bondada Engineering serves major PSU clients like NLC, Singareni, BSNL, NTPC, and NHPC, alongside private players such as Airtel and Reliance Jio, with Adani negotiations ongoing. They focus on energy-efficient products—BLDC motors, LED, solar streetlights—targeting weather stations and drones, while exploring US expansion amid import duty challenges.
Bondada Engineering Limited provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry.
Written by Abhishek Singh
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