Synopsis: Ceigall India Limited has taken a major step beyond its core road construction business after its wholly owned subsidiary, Ceigall Morena Solar BESS Park Limited, signed a Power Purchase Agreement (PPA) for a 220 MW Solar + Battery Energy Storage System (BESS) project at Morena, Madhya Pradesh. The project, valued at nearly Rs. 1,700 crore, strengthens the company’s push into renewable energy infrastructure and opens a long-term annuity-style revenue stream through a 25-year power supply contract.
Ceigall India informed exchanges that its subsidiary, Ceigall Morena Solar BESS Park Limited, has executed a Power Purchase Agreement with Rewa Ultra Mega Solar Limited on June 29, 2026 for the development of a 220 MW integrated Solar and Battery Energy Storage System project at Morena Solar Park, Madhya Pradesh.
The project carries an estimated value of Rs. 1,700 crore including GST and will operate under a tariff structure of Rs. 2.70 per kWh. Construction is expected to be completed within 18 months, followed by a 25-year operational tenure under the PPA. The company also clarified that the awarding entity has no promoter or related-party connection with Ceigall.
Shares of Ceigall India Limited, with a market capitalisation of Rs. 6,840.15 crore, are trading at Rs. 392.75, down 0.81%from its previous closing price. The stock touched an intraday high of Rs. 405.70 and a low of Rs. 392.10. It is currently trading at a P/E ratio of 22.33.
At Rs. 1,700 crore for a 220 MW capacity, this project meaningfully expands Ceigall’s order book, historically dominated by highway and road construction contracts. The 18-month execution timeline means the project should contribute significantly to FY27 and FY28 revenues, improving earnings visibility over the medium term.
Unlike traditional EPC road projects that generate one-time construction revenue, the 25-year PPA creates predictable annuity-like cash flows once operations begin. The inclusion of battery storage increases upfront capital intensity compared to standard solar installations, but also improves long-term economics through premium pricing and higher utilization value.
Strategic Interpretation
This project marks an important shift for Ceigall India Limited as the company moves beyond being primarily a road and highway construction player and expands deeper into renewable energy infrastructure. Until now, most of Ceigall’s business has been driven by government infrastructure projects, especially contracts from National Highways Authority of India (NHAI), but this new push into clean energy helps reduce dependence on a single business segment while creating a new long-term growth opportunity.
One of the biggest highlights of this project is the Battery Energy Storage System (BESS) component. Unlike traditional solar plants that only generate power during daytime, battery storage allows electricity to be stored and supplied later during peak demand hours. This makes the project capable of delivering Firm and Dispatchable Renewable Power (FDRP), which is becoming increasingly important as India adds more renewable energy capacity and focuses on improving grid stability.
The tariff of Rs. 2.70 per kWh shows that Ceigall has remained competitive despite the higher complexity and capital requirements that come with solar-plus-storage projects. It also suggests the company is entering India’s fast-growing solar storage segment early, where demand from utilities is expected to grow significantly over the next few years.
From a business perspective, the Rs. 1,700 crore project further strengthens Ceigall’s order book, which stood at Rs. 18,554 crore at the end of FY26 with a strong 4.8x book-to-bill ratio. Management has also stated that renewable energy projects now contribute nearly 19% of the total order book, showing a clear diversification away from its traditional road-focused project pipeline. With an 18-month construction period and a 25-year power purchase agreement, the project improves long-term revenue visibility while reducing reliance on highway construction orders alone.
While companies like Tata Power Company Limited and Adani Green Energy Limited currently lead India’s renewable energy sector, this win shows Ceigall is capable of competing against established energy developers in large-scale competitive bidding. It also places the company in a strong position as India continues expanding renewable capacity under the Ministry of New and Renewable Energy (MNRE) target of adding 50 GW of renewable capacity annually.
Company Overview
Ceigall India Limited is an infrastructure construction company headquartered in Ludhiana, Punjab, with a strong presence in road, highway, and EPC development projects across India. The company has built expertise in large-scale engineering and civil infrastructure execution and is now expanding into renewable energy infrastructure, including solar and battery storage projects, as part of its long-term diversification strategy.
The Morena Solar-BESS project marks one of Ceigall’s most significant strategic moves so far, signaling its ambition to evolve from a conventional infrastructure contractor into a broader clean energy and infrastructure platform.
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