Synopsis: Patel Engineering’s shares jump after securing a BTN/INR 230.70 crore contract for pre-construction of Bhutan’s 1,125 MW Dorjilung Hydroelectric Project, covering tunnels and hydromechanical works, boosting regional renewable energy collaboration.
The shares of this company are engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure and transport are in the spotlight after it secured an order from Dorjilung Hydro Power Limited (DHPL).
With a market capitalisation of Rs. 2,479 cr, the shares of Patel Engineering were trading at Rs. 24 per share, increasing 3% in today’s market session, making a high of Rs. 25.38, up from its previous close of Rs. 24.68 per share.
About the order
Patel Engineering Limited has received a Letter of Award (LOA) from Dorjilung Hydro Power Limited (DHPL), a joint venture between Druk Green Power Corporation Limited (Bhutan) and Tata Power Company Limited (India), for pre-construction works of the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. The contract is valued at BTN/INR 230.70 crore (excluding taxes) and covers Package I of the project.
Under this package, Patel Engineering will undertake civil and hydromechanical works, including the construction of two diversion tunnels (11 m diameter, 930 m and 821 m long), an intermediate adit (7 m diameter, 116 m), and a highway road tunnel (D-shaped, 11 m × 7.5 m, 500 m long). The hydromechanical scope includes four sets of vertical lift fixed wheel gates.
The project has a construction period of 300 days, followed by a one-year Defects Notification Period. Located approximately 7 km from Autsho town in Mongar Dzongkhag, Bhutan, the Dorjilung Hydroelectric Power Project is Bhutan’s largest hydro project under a Public–Private Partnership (PPP) model, aimed at meeting domestic energy needs and exporting surplus clean power to India, enhancing regional energy security.
Management Commentary
Commenting on the award, Ms. Kavita Shirvaikar, Managing Director of Patel Engineering Ltd., expressed pride in being entrusted with the prestigious Dorjilung project, highlighting hydropower as a key component of Bhutan’s energy future.
She emphasised the company’s commitment to delivering world-class engineering solutions, strengthening long-term partnerships in the renewable energy sector, and exploring further hydropower opportunities in Bhutan and neighbouring countries, reinforcing Patel Engineering’s vision of promoting sustainable growth and regional collaboration.
Patel Engineering Ltd is a 76-year-old company established in the year 1949 and 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.
For Q3FY26, it reported marginal growth in sales but declines in profitability compared to Q3FY25. Sales rose 3%, from Rs. 1,206 crore to Rs. 1,239 crore. EBITDA fell 21%, from Rs. 184 crore to Rs. 145 crore, while net profit declined 12%, from Rs. 81.5 crore to Rs. 71.6 crore. EPS decreased 11%, from Rs. 0.80 to Rs. 0.71.
Order Book
The order book of Patel Engineering is well-diversified across segments, clients, and project completion stages, reflecting a balanced and robust portfolio. Segment-wise, the majority of orders are in the Hydroelectric sector, accounting for 58.55% of the total order book with 16 projects valued at Rs. 8,855.1 crore. Irrigation projects contribute 18.86% (21 projects, Rs. 2,851.5 crore), while Tunnel and Road projects account for 6.21% (Rs. 939 crore) and 1.42% (Rs. 215.3 crore) respectively. The remaining 14.96% comes from other miscellaneous projects (Rs. 2,262.3 crore). In total, there are 52 active projects worth Rs. 15,123.2 crore.
Client-wise, the largest portion of the order book comes from Central Government/PSUs, contributing 59.23% with 16 projects valued at Rs. 8,957 crore. State Government Departments account for 34.34% (33 projects, Rs. 5,192.9 crore). International clients and others make up 1.16% (Rs. 175.2 crore) and 5.28% (Rs. 798.1 crore) of the order book respectively.
Project completion-wise, a significant portion of the order book is in early stages, with Rs. 4,968.7 crore of projects below 10% completion. Projects in the 50–70% completion range represent Rs. 4,494.8 crore, followed by projects in the 30–50% and 70–90% ranges at Rs. 3,811.2 crore and Rs. 885.1 crore, respectively. Projects near completion (90–100%) constitute Rs. 459.4 crore, and those in the 10–30% range total Rs. 504 crore.
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