Dilip Buildcon hit a day’s high of Rs 434.45 on NSE after bagging a Rs 160 crore EPC road contract in Odisha’s Sundargarh district.

The contract works on what’s called an EPC basis, short for Engineering, Procurement and Construction. In plain terms, this means Dilip Buildcon handles the entire job itself, from designing the road to sourcing materials to actually building it, rather than just executing someone else’s blueprint.

This particular project involves building a six lane diversion road with a service lane, stretching across a defined section of the Duduka-Gopalpur-Toparia Road.

The contract is worth Rs 160.20 crore, excluding GST, and is expected to be completed within 18 months. This isn’t an isolated win either.

Back in May, the company’s joint venture with Ranjit Buildcon had bagged a much larger order, worth Rs 268 crore excluding GST, from the Gujarat government for a barrage and river protection project on the Sabarmati river.

That contract also includes ten years of operation and maintenance work once construction wraps up, which gives the company a longer runway of assured work beyond just the build phase.

The order comes at a time when the company’s own numbers have looked weaker. In the March quarter, consolidated net profit fell sharply, down 63.7% year on year to Rs 62.05 crore, while revenue dropped 25.7% to Rs 2,299.8 crore.

Operating profit, or EBITDA, also declined by 40.7%, and the margin narrowed to 17.06% from 21.35% a year earlier.

The company pointed to lower execution volumes and margin pressure as the main reasons behind the weaker showing. There’s also a bigger strategic shift underway.

Dilip Buildcon has said it wants to reduce how much it depends on EPC contracts specifically, aiming for three quarters of its profits and cash flows to eventually come from long term infrastructure assets and mining operations by FY29, with EPC work making up the remaining share.

The stock’s reaction to the news stayed fairly muted through the day, It closed at Rs 429.25 on NSE, down 0.15%, or Rs 0.65, from the previous close of Rs 429.90.

Tired of missing hot stocks? Tradz by EquityPandit provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!