Ceigall India shares gained on Thursday after the company received a Letter of Intent from REC Power Development and Consultancy Ltd for a power transmission project with an estimated total project cost of around Rs 5,300 crore, including GST. 

The project has been awarded under a tariff-based competitive bidding framework and involves the development of a common transmission system to evacuate renewable power from three major generation zones in Gujarat. These include Lakadia Phase-II, Jam Khambhaliya Phase-II and Jamnagar Phase-I.

The scope of the project includes a 765/400 kV air-insulated substation and around 300 km of transmission lines. Ceigall India will have 36 months to complete the project. 

This will be followed by an operational period of 35 years, giving the company exposure to a long-term infrastructure asset beyond its traditional EPC activities.

The project carries annual transmission charges of around Rs 608.67 crore for 35 years. While the Rs 5,300 crore figure represents the estimated total project cost, the long operating period could provide Ceigall with visibility into recurring cash flows once the transmission system becomes operational.

The latest development also highlights Ceigall’s growing push into power and renewable infrastructure. Earlier this year, the company executed two long-term power purchase agreements with Maharashtra State Electricity Distribution Co for solar projects with a combined capacity of 337 MW. The projects have a combined EPC value of around Rs 1,369 crore and are expected to be completed within 18 months.

Ceigall’s core business continues to include highways, expressways, bridges, railway overbridges, tunnels and other infrastructure projects. In the June 2026 quarter, consolidated revenue from operations rose 15.68% year-on-year to Rs 969.64 crore, while net profit increased 15.27% to Rs 61.30 crore.

The latest Rs 5,300 crore LOI is therefore a significant addition to Ceigall India’s infrastructure pipeline. Investors will now watch the conversion of the LOI into a formal contract, project execution and the company’s ability to build a larger presence in long-term power transmission assets.

At 3:05 pm, the shares of Ceigall India were trading 2.49% higher at Rs 349.10 on NSE. 

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