Synopsis
Bharat Road Network’s subsidiary, Orissa Steel Expressway Pvt. Ltd. (OSEPL), has received Rs. 383.85 crore from NHAI as a one-time settlement under the Government’s Vivad Se Vishwas II Scheme, resolving all disputes under the 2010 concession agreement.
A decade-old highway dispute has finally been put to rest with a massive Rs. 384 crore settlement under the Centre’s Vivad Se Vishwas II scheme marking one of the biggest closures under India’s contractual dispute resolution push.
Price action
With market capitalization of Rs. 181 cr, the shares of Bharat Road Network Ltd were currently trading at Rs. 21.48 per share with 4.88% up in today’s session, with previous close of Rs. 20.48 per share.
What Happened
Orissa Steel Expressway Private Limited (OSEPL), a subsidiary of Bharat Road Network Limited, has received Rs. 383.85 crore (net of TDS) from the National Highways Authority of India (NHAI) on July 8, 2025. This payment marks the full and final settlement of all disputes under the Concession Agreement dated July 6, 2010, executed between the two parties.
The settlement was executed under the Government of India’s ‘Vivad Se Vishwas II (Contractual Disputes)’ scheme, aimed at resolving long-pending infrastructure contract issues. As per the agreement, both NHAI and OSEPL have agreed to permanently waive any further claims or legal proceedings related to the matter.
OSEPL, in which the listed company holds a 59.38% stake, will utilize the funds to address priority liabilities, legal dues, and operational obligations. However, the exact financial impact on the listed entity remains unquantifiable at this stage. The resolution brings closure to a longstanding contractual dispute and improves visibility on OSEPL’s financial recovery.
About the company
Bharat Road Network Limited (BRNL) is a road BOT company in India, focused on development, implementation, operation and maintenance of roads and highways projects. The Company is involved in the development, operation and maintenance of national and state highways in several states in India with projects in states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha.
Financials
The company has shown a strong financial turnaround, with key performance metrics reflecting significant improvement. It reported a Return on Capital Employed (ROCE) of 15.2% and an impressive Return on Equity (ROE) of 52.3%. Debt has been reduced, strengthening its balance sheet position, while the stock currently trades at just 0.53 times its book value, indicating an attractive valuation.
For FY25, sales rose by 20.67% year-on-year from Rs. 380 crore in FY24 to Rs. 458 crore, while operating profits jumped from Rs. 138 crore to Rs. 241 crore. Notably, net profit turned positive, improving from a loss of Rs. 113 crore in FY24 to a profit of Rs. 136 crore in FY25. With this strong performance trajectory, the company is expected to report another solid quarter ahead.
Written by Manideep Appana
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