Synopsis: Bharat Road Network plunged sharply after the announcement from its promoter, Srei Infrastructure Finance, of the plan to sell its entire 19.81% stake (1.66 crore shares) to Jemtec Engineering.
The shares of this company, which is engaged in designing, building, operating, maintaining, and carrying out all other activities related to road projects under the aforementioned SPV model, are in focus following a key transaction unfolding behind the company. In this article, we will delve further into the details.
With a market capitalisation of Rs 194 crore, the shares of Bharat Road Network Ltd. reached a day’s low of Rs 21.05 per share, down 9 percent from its previous day’s closing price of Rs 23.12 per share. Over the past five years, the stock has corrected by over 33 percent, as compared to NIFTY 50’s positive return of 89 percent.
About the Sale
Bharat Road Network Ltd, through a stock exchange filing, announced that its promoter, Srei Infrastructure Finance Ltd, has signed a framework agreement to sell its entire 19.81 percent stake, representing 1.66 crore shares, to Jemtec Engineering Pvt Ltd.
This is a staged sale. The actual handover of shares will be at a future date, as agreed by the parties. After the transaction, Srei Infrastructure Finance will no longer be the promoter, and Jemtec Engineering will hold a significant stake. The proposed deal may result in a change of the company’s promoter or ownership or control up to 19.81 percent.
Financial and Other Highlights
Bharat Road Network has reported an operating revenue of Rs 17 crore in Q2 FY26, representing a sharp 78 percent decline compared to Rs 76 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 63 percent from Rs 46 crore.
Regarding its profitability, it reported a net profit of Rs 12 crore in Q2 FY26, a sharp turnaround as compared to a loss of Rs 10 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 8 percent from Rs 13 crore. It is to be noted that the company’s profitability was highly influenced by a one-time other income of Rs 67 crore.
Bharat Road Network Limited (BRNL) is an infrastructure company that primarily focuses on the roads and highways sector in India. It is involved in the development, construction, operation and maintenance of highway projects mainly under the Build-Operate-Transfer (BOT) model. The company was established in 2006 and collaborates with the EPC partners who are experienced in the industry to carry out and manage projects effectively.
BRNL manages six BOT road projects in Kerala and Maharashtra that total approximately 2,095 lane kilometres of roads and bridges. The company’s current concentration is on maximising the value of its project portfolio, strengthening manpower, re-aligning assets, recovering the claims that are still pending, and at the same time, ensuring that the operations and maintenance of the existing road assets are going on smoothly.
Written by Satyajeet Mukherjee
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