Synopsis: Infra stock jumped 5% after declaring the lowest bidder by Himachal Pradesh Power Corporation Limited for the Rs. 910.08 crore Renukaji Dam Project (Package-1), involving tunnels, portals, roads, and hydro-mechanical installations to be completed in 30 months.
The shares of this company are engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures etc are in the spotlight after it rose by 5% following the announcement that it was declared the lowest bidder by Himachal Pradesh Power Corporation Limited for the Renukaji Dam Project.
With a market capitalisation of Rs. 2,763 cr, the shares of Patel Engineering Ltd were trading at Rs. 27.85 per share, increasing 5% in today’s market session, making a high of Rs. 28.55, up from its previous close of Rs. 27.23 per share. As of Q3FY26, Vijay Kedia, via Kedia Securities Private Ltd holds a 1.01% stake in the company.
About the order
Patel Engineering Limited is a Mumbai-based infrastructure company that has been declared the lowest bidder (L1) by Himachal Pradesh Power Corporation Limited for the construction of the Renukaji Dam Project (Package-1). The total project value is Rs. 910.08 crore.
The project is located at Village Dadahu, Tehsil Renuka, District Sirmaur, Himachal Pradesh. It has a scheduled completion timeline of 30 months. The scope of work includes the construction of three diversion tunnels, with diameters of 9.5 meters and lengths of 1379 meters, 1468 meters, and 1590 meters, respectively.
The project also involves developing three inlet and outlet portals, constructing 6 kilometers of access roads, installing hydro-mechanical gates for the tunnels, and executing instrumentation works to ensure operational efficiency and safety.
This contract has been awarded by a domestic entity, and it is classified as a civil contract. The promoters or promoter group of Patel Engineering have no interest in HPPCL, and the order does not constitute a related-party transaction.
Commenting on the achievement, Ms. Kavita Shirvaikar, Managing Director of Patel Engineering, expressed pride in the company’s capabilities to deliver large-scale infrastructure projects. Also emphasised that the project reinforces PEL’s commitment to sustainable water management, hydropower development, and India’s broader infrastructure growth.
Segment-wise Order Book
The company’s order book is dominated by the hydroelectric segment, with a value of Rs. 8,855.1 crore across 16 projects, accounting for 58.55% of the total. The irrigation segment follows, contributing Rs. 2,851.5 crore from 21 projects (18.86%).
Tunnel projects total Rs. 939.0 crore from 5 projects (6.21%), while road projects account for Rs. 215.3 crore across 5 projects (1.42%). The remaining segment, categorized as ‘Others,’ contributes Rs. 2,262.3 crore from 5 projects (14.96%).
Client-wise Order Book
A majority of the order book comes from the central government and public sector undertakings, totaling Rs. 8,957.0 crore across 16 projects (59.23%). State government departments contribute Rs. 5,192.9 crore from 33 projects (34.34%). International projects account for Rs. 175.2 crore from a single project (1.16%), while other clients add Rs. 798.1 crore from 2 projects (5.28%).
About the company
Patel Engineering Ltd has a strong presence in hydropower, tunnelling and irrigation segments. The company has a consistent track record in the execution of projects in both the domestic and international arenas. It has completed over 85 dams, 40 hydroelectric projects and more than 300 km of tunnelling for clients which are mostly central PSUs or state government organisations.
On a year-on-year (YoY) basis, its sales increased modestly by 3% to Rs. 1,239 crore in Q3FY26 from Rs. 1,206 crore in Q3FY25. EBITDA declined sharply by 21% to Rs. 145 crore compared to Rs. 184 crore a year ago. Net profit fell by 12% to Rs. 71.6 crore from Rs. 81.5 crore, while earnings per share (EPS) dropped 11% to Rs. 0.71 from Rs. 0.80 over the same period.
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