The shares of a prominent infrastructure company gained up to 8 percent after the company declared the lowest bidder for two projects worth Rs 2,036.89 crore.
Price Movement
With a market capitalization of Rs 3,771.83 crore, the shares of Patel Engineering Ltd were trading at Rs 44.62 per share, increasing around 0.61 percent as compared to the previous closing price of Rs 44.35 apiece.
Reason for Rise
The shares of Patel Engineering Ltd have seen positive movement after the announcement as the lowest bidder for two significant infrastructure projects worth Rs 2,036.89 crore. The first project, valued at Rs 1,318.89 crore, involves the construction of Kondhane Dam and allied works using Roller Compacted Concrete Technology, awarded by CIDCO.
The second contract, worth Rs 718 crore (including tax), is for the 240 MW HEO Hydro Electric Project in Arunachal Pradesh, awarded by NEEPCO. These project wins highlight Patel Engineering’s strong execution capabilities in both water infrastructure and hydropower sectors, further boosting investor confidence and contributing to the company’s recent upward stock momentum.
Financial Growth
Looking forward to the company’s financial performance, revenue increased by 13 percent from Rs 1,061 crore in Q3FY24 to Rs 1,206 crore in Q3FY25, Moreover, during the same time frame, net profit jumped by 19 percent from Rs 69 crore to Rs 82 crore.
Also read: 15,000% Net Profit Growth: IT stock to keep on your radar after it announces strong Q4 results
Order Book
Patel Engineering’s order book totals Rs 16,396 crore, comprising 64 percent hydropower, 21 percent irrigation, and 10 percent tunneling. It aims for Rs 10,000–12,000 crore in new orders for FY26, reflecting notable 10–12 percent growth. Management expects significant project awards across diverse sectors this calendar year, further underscoring sustained, robust infrastructure spending and strong pipeline visibility.
Market Potential & Opportunities
Government has allocated Rs 11.21 lakh crore (3.1 percent of GDP) to infrastructure. Hydro projects include 15,000+ MW in Arunachal, 6,000+ MW in HP & J&K, and 9,000+ MW elsewhere/Nepal. Jal Jeevan Mission gets Rs 670,000 mn and PMKSY Rs 82,590 mn for FY26. Over 2,500 km of extensive tunneling, 800+ projects, Rs 8 lakh crore roads, and 60,000+ MW pumped storage planned.
Management Outlook and Confidence
Management anticipates double-digit revenue growth of 10 percent in FY26 and sees potential to surpass this in FY27, reflecting confidence in the company’s strategic initiatives, robust and diversified project pipeline, favorable macro conditions, and execution to drive accelerated financial performance over the next two fiscal years.
Company Profile
Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure, and transport.
Written by Abhishek Singh
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