Synopsis:
Dilip Buildcon surged into focus after emerging as the L-1 bidder for NALCO’s Rs. 5,000-crore, 25-year Pottangi Bauxite Mines and OLCC project, strengthening its EPC and long-term mining order book.
This company is in the business of development of infrastructure facilities on Engineering Procurement and Construction basis (EPC) and undertakes contracts from various Government and other parties is now in the focus after emerging as L1 bidder for Rs. 5,000 cr NALCO project.
With market capitalization of Rs. 7,049 cr, the shares of Dilip Buildcon Ltd are currently trading at Rs. 435 per share, increasing nearly 4% in today’s market session making a high of Rs. 446.10, from its previous close of Rs. 430.35 per share.
About the contract
Dilip Buildcon Limited has announced that it has emerged as the L-1 (lowest) bidder for a major project awarded by National Aluminium Company Limited (NALCO), a Government of India enterprise. The contract is for the Development and Operation of the Pottangi Bauxite Mines, along with the construction of the Overland Conveyor Corridor (OLCC) and other allied infrastructure.
The project is large and will be executed over a long period of 25 years, consisting of two major parts. The first part is an EPC (Engineering, Procurement & Construction) contract covering activities such as the OLCC system, road construction, a water intake facility, and initial mining and transportation.
This portion is scheduled to be completed over the first 3 years, involving the handling of 7 million tonnes of material and is valued at Rs. 1,750 crore (excluding GST).
The second part covers mining operations for the remaining 22 years, where DBL will handle 77 million tonnes of bauxite. At the current mining charge of Rs. 423 per tonne, the value of this long-term mining component is estimated at Rs. 3,250 crore. Together, the overall project size totals Rs. 5,000 crore, making it one of the significant long-term contracts secured by the company. As of Q2FY26, the order book stands at Rs. 18,610 crore.
About the company
Dilip Buildcon Ltd (DBL) is one of India’s leading infrastructure and construction companies, engaged in building roads, highways, bridges, mining projects, irrigation systems and urban development works. Known for its strong execution capabilities and large order book, DBL operates across multiple states and has expanded into long-term mining and MDO (Mine Developer & Operator) contracts.
The company reported a 23% YoY decline in sales, falling to Rs. 1,926 crore in Q2FY26 from Rs. 2,497 crore a year earlier. EBITDA dropped 12% YoY to Rs. 471 crore, while net profit decreased 20% YoY to Rs. 214 crore. The company’s EPS also fell 31% YoY, coming in at Rs. 11.17 for Q2FY26 compared to Rs. 16.09 in Q2FY25. The company reports a ROCE of 14.8% and an ROE of 9.97%. Its P/E ratio stands at 16.2, compared to the industry average of 20.0.
Written by Manideep Appana
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