Synopsis: Chavda Infra Limited has received a Letter of Acceptance (LOA) of 89.45 crore from ADI Shantigram Abode LLP for the construction of a residential high-rise building at Adani Shantigram Township, Ahmedabad. Following the order, the company’s total unexecuted order book has increased to approximately Rs 813.90 crore, strengthening long-term revenue visibility.

Contractors frequently stumble over third-party supply constraints, steel and cement cost fluctuations, and labour inefficiencies when attempting to scale large-scale vertical structures. By layering an in-house manufacturing engine, Chavda RMC (Ready-Mix Concrete), directly into its contracting operations, the company completely controls its core component supply chain.

Shares of Chavda Infra Limited were trading at Rs 107.30, up by 2.73 percent from the previous close of Rs 104.45. The stock opened at Rs 109.5, touching an intraday high of Rs 113.8 and a low of Rs 105.1. The company currently commands a market capitalisation of Rs. 350 crore.

Order Announcement 

According to the company’s exchange filing, Chavda Infra has received a Letter of Acceptance (LOA) from ADI Shantigram Abode LLP for the construction of the core and shell structure of a proposed residential high-rise building at the Adani Shantigram Township in Ahmedabad

The contract is valued at Rs 89.45 crore, excluding GST, and is scheduled to be completed within 24 months. The project involves executing the structural framework of the residential tower, including the primary reinforced concrete structure that forms the backbone of the building, before interior finishing and fit-outs commence. With the latest contract, Chavda Infra’s total unexecuted order book has increased to approximately Rs 813.90 crore.

An unexecuted order book is the total value of confirmed contracts that have been awarded but not yet completed and recognised as revenue. Often, a healthy order book is one of the best indicators of future business visibility for infrastructure companies, as these projects are slowly converted into revenue as construction progresses.

What Does ‘Core & Shell Construction’ Mean?

The awarded contract is specifically for the core and shell phase of construction. This usually includes the building foundation, columns, beams, slabs, lift cores, staircases, external structural framework and other major civil works. This is the most engineering-intensive stage of a high-rise project and is critical to guaranteeing the structural safety, quality and timely execution of the project before interior development begins.

The award of such contracts is a testimony to a contractor’s ability to deliver technically complex multi-storey developments to exacting engineering and quality standards.

Why This Project Is Strategically Important

The project is located in Adani Shantigram, one of the largest integrated townships in Ahmedabad, and offers premium residential, commercial, and mixed-use facilities.

Executing large integrated township projects can enhance a contractor’s credentials. Developers generally award contracts on the basis of technical capability, track record of execution and delivery timelines. Successful completion of the project can also increase the chances of getting more contracts from large real estate developers in the future.

Financial Highlights

The company posted a strong topline performance in Q4 FY26, with revenues rising 49.8 percent YoY from Rs 111.92 crore in Q4 FY25 to Rs 167.61 crore in Q4 FY26 and 240.1 percent QoQ from Rs 49.28 crore in Q3 FY26. 

Despite robust revenue growth, operating profit declined 16.1 percent YoY from Rs 22.52 crore to Rs 18.90 crore, though it increased 66.7 percent QoQ from Rs 11.34 crore. Consequently, OPM contracted to 11.28 percent in Q4 FY26 from 20.12 percent in Q4 FY25 and 23.01 percent in Q3 FY26, reflecting margin pressure amid higher operating expenses.

The company posted a net profit of Rs 7.34 crore in Q4 FY26, compared with Rs 10.75 crore in Q4 FY25, marking a 31.7 percent YoY decline. However, on a sequential basis, net profit jumped 321.8 percent QoQ from Rs 1.74 crore in Q3 FY26, supported by the sharp recovery in sales. 

EPS improved to Rs 2.25 in Q4 FY26, compared with Rs 4.36 in Q4 FY25 and Rs 0.71 in Q3 FY26. The balance sheet remained healthy, with total assets growing 38.1 percent YoY from Rs 362 crore in FY25 to Rs 500 crore in FY26. Reserves more than doubled to Rs 188 crore from Rs 88 crore. Leverage improves with borrowings down to Rs 139 crore from Rs 162 crore despite expansion. 

The company has a working capital of Rs 153 crore, a current ratio of 1.66x and a debt-to-equity ratio of 0.63x. It reported ROCE of 13.5 percent and ROE of 10.2 percent, indicating a stable financial position and moderate profitability.

The order of Rs 89.45 crore increases Chavda Infra’s executable order book to Rs 813.90 crore, improving revenue visibility. Project completion milestones determine construction revenue recognition. A strong order backlog boosts future cash flows, resource utilisation, and earnings visibility over the next few quarters.

India’s residential real estate sector is driven by urbanisation, premium housing, infrastructure, and integrated townships. The 24-month contract puts Chavda Infra in a good position to benefit from sustained EPC opportunities, while companies with strong execution capabilities and healthy order books should benefit from the real estate investment cycle.

Chavda Infra Limited is an integrated civil construction company based in Ahmedabad with more than 3 decades of experience. The company takes up High rise residential & commercial projects, Industrial construction, Real Estate Development, Ready-mix concrete production and Institutional Infrastructure projects in Gujarat including Ahmedabad, Gandhinagar, GIFT City, Rajkot & Vadodara.

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