Synopsis:
Desco Infratech jumped sharply after it secured new orders totalling Rs 8.08 crore, among which there is an LOA of Rs 1.77 crore from Maharashtra Natural Gas Limited for PNG support services, and new contracts amounting to approximately Rs 6.31 crore from Adani Total Gas, KP Energy, Sundrops Energia, and Antelopus Selan Energy for gas pipeline and infrastructure works.
The shares of this infrastructure company, focused on Engineering, Planning, & Construction, particularly in City Gas Distribution, Renewable Energy, Water, and Power sectors, are in focus after bagging multiple orders from various clients. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 159 crore, the shares of Desco Infratech Ltd reached a day’s high of Rs 207.10 per share, up 6 percent from its previous day’s closing price of Rs 194.70 per share. Post its listing on the stock exchange in April 2025, the stock has delivered a return of 28 percent.
About the Order
Desco Infratech Limited, through a stock exchange filing, announced that it has secured new orders with an aggregate value of Rs. 8.08 crore. Part of this order includes a Letter of Acceptance amounting to Rs. 1.77 crore by Maharashtra Natural Gas Limited for the provision of support services in PNG operations.
Additionally, the company also secured orders worth approximately Rs. 6.31 crores from Adani Total Gas, KP Energy, Sundrops Energia, and Antelopus Selan Energy for the gas pipeline, electrical work, and other related infrastructure projects that will help the company deepen its business pipeline further.
Q2 Highlights
Desco Infratech reported a core revenue of Rs 42 crore in H1 FY26, a growth of 83 percent as compared to Rs 23 crore in H1 FY25. Additionally, it grew by 14 percent from Rs 37 crore in H2 FY25. It derives 43 percent of its revenue from the Northern region of India, followed by 40.89 percent from the West and the remaining 16.11 percent from the Southern region.
Regarding its profitability, it reported a net profit of Rs 6 crore in H1 FY26, a growth of 90 percent as compared to Rs 3.25 crore in H1 FY25. Additionally, it grew slightly by 6 percent from Rs 5.81 crore in H2 FY25.
As of the latest filing available, the company has a robust order book of over Rs 345 crore, of which the majority of the order is sourced from its EPC segment contributing Rs 326.61 crore (94.53 percent), followed by O&M with Rs 12.22 crore (3.54 percent) and the remaining from Power & Transmission segment with Rs 6.66 crore (1.93 percent).
The stock delivered an exceptional ROE and ROCE of 25.58 percent and 31.18 percent respectively, and is currently trading at a low P/E of 12.92x as compared to its industry average of 19.51x.
Desco Infratech, established in 2011, is engaged in the development of the essential infrastructure sectors. The company is instrumental in the construction of city gas pipelines, the implementation of renewable energy projects, the provision of water supply, and the distribution of power. With involvement in the laying of MDPE and steel pipelines as well as the establishment of utility networks that are dependable throughout India, Desco is turning these seemingly impossible tasks into reality.
Desco concentrates on the safety of workers, delivering the project on time, and using eco-friendly solutions. Besides, the company, with its increasing proficiency in renewable energy and the forthcoming infrastructure requirements, intends to be the leader at the national level, which will be the source of community growth and will build a bright future for the country.
Written by Satyajeet Mukherjee
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