Dilip Buildcon shares gain on Rs 879-crore NHAI contract win in Tamil Nadu

Dilip Buildcon Ltd (DBL) announced on Friday that it has secured a Letter of Acceptance from the National Highways Authority of India (NHAI) for a ₹879.30-crore contract in Tamil Nadu. The project entails four-laning the Paramakudi–Ramanathapuram section of NH-49 (New NH-87), spanning 46.665 kilometres under the Hybrid Annuity Model. The company stated that construction is to be completed within 24 months, followed by a 15-year operations and maintenance phase.

The stock closed 1.87% higher at Rs 480 today against the previous close of Rs 469.50. Market cap of the firm stood at Rs 7769.74 crore. Earlier, the infra stock gained 2.43% to an intra day high of Rs 480. 

This highway contract marks Dilip Buildcon’s second significant order win in November. Earlier this month, the Bhopal-based infrastructure developer was awarded a ₹5,000-crore mining and infrastructure contract by National Aluminium Company Ltd. for development and operation of a bauxite mine over a 25-year period. The initial three years are designated for engineering, procurement and construction, with mining operations set for the subsequent 22 years.

Recent financial results showed a softer September quarter, with net profit falling 22.8% year-on-year to ₹182 crore from ₹235 crore, and revenue declining by 21.8% to ₹1,925 crore. Despite the revenue drop, EBITDA decreased 5.8% to ₹470.6 crore, while EBITDA margin improved to 24.5%, up from 20.3% a year earlier. The recent contract wins have offered some support to investor sentiment amid the company’s slower project execution in the last quarter.

Dilip Buildcon’s ongoing project momentum with consecutive order wins is expected to further strengthen its position in the infrastructure segment. The dual contract awards in mining and highways could underpin the company's medium-term revenues and operational focus, even as recent quarterly results reflected temporary execution headwinds.