Shares of Afcons Infrastructure Ltd plunged more than 4% on Wednesday, 25 February, after a client terminated a road project contract worth Euro 113 million, prompting the business to pursue legal action.
Afcons Infrastructure stated it got a termination notice from Societe Autoroutiere du Gabon (SAG) over an engineering, procurement, and construction (EPC) contract on Gabon’s National Road NR1.
The contract, worth roughly Euro 113.03 million, covers the design, construction, rehabilitation, and upgrade of a 117-kilometre length between PK 24+000 to PK 105+000. On 31 January 2026, the business informed the exchanges that the client had invoked his bond.
Afcons stated that approximately 93.47% of the project had been finished as of 31 December 2025, and that the road had been open to traffic for nearly two years. Certain remaining components are waiting because of delays in land transfer.
The company thinks the termination violates contractual terms and applicable law, and it is seeking proper contractual and legal remedies. According to Afcons, the dispute is project-specific and has no influence on the company’s overall order book, operating capability, or business prospects.
Afcons Infrastructure reported a 34.77% decrease in net profit to Rs 97.09 crore for the quarter ending December 2025, compared to Rs 148.85 crore the previous year. During the quarter, revenue from operations declined 7.33% to Rs 2,975.77 crore, compared to Rs 3,211.10 crore the previous year.
At 12:42 pm, the shares of Afcon Infrastructure were trading 2.09% lower at Rs 301.55 on NSE.
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