Synopsis: An EPC company has secured two LOIs worth Rs 798.19 crore for major works at SECL’s Jhiria West OCP, a 9-year assignment that strengthens the company’s pipeline.
A smallcap company in the business of Engineering, Procurement, and Construction (EPC), is in the spotlight after it bagged LoIs worth Rs 798.19 crore, which provides revenue visibility over the years.
With a market capitalization of Rs 3,105 crore, Patel Engineering Ltd stock surged to an intraday high of Rs 38.6, marking a 16.4 percent gain from the previous close of Rs 33.16, this reflects upon strong investor confidence following the order winning news.
What’s the News?
Patel Engineering Ltd went to the stock exchange to announce that the EPC company has bagged two LoIs worth Rs 798.19 crore for excavation and coal-handling works at SECL’s Jhiria West Open Cast Project in the Hasdeo Area of Chattisgarh. The project was awarded by Saidax Engineers and Infrastructure Pvt Ltd.
The contracts cover overburden removal, coal cutting, loading, transportation, equipment hire, diesel supply, and the full maintenance of the project across its 9 years of execution period. These strategic orders are set to strengthen the company’s EPC tender pipeline by expanding its order book, and showcase its growing footprint in the engineering, procurement, and construction (EPC) sector.
The company management states that these new projects are a natural extension of the large-scale infrastructure works we undertake and would also open up new avenues for growth. They come alongside a strong tender pipeline of more than Rs 34,000 crores already bid and under evaluation with another Rs 18,000Cr expected before year-end. Looking ahead the company anticipates nearly Rs 1 lakh crore projects in the next one to two years in its core sector. Moreover, with the opportunities landscape they also expect to expand their order book significantly in the coming years.
Order Book
Patel Engineering Ltd order book as of Q2FY26 stands at Rs 15,146 Cr. out of which 61.89 percent comes from Hydroelectricity projects 19.96 percent from irrigation and 6.69 percent from Tunnel projects, this even include the latest Rs 240 Cr Teesta V Power Station in Sikkim.
Majority of the orders the company gets comes from Central Government and PSU which make about 62.56 percent of the order book while 36.14 percent comes from the State Government Departments.
Financial Overview
The company’s YoY operating revenue grew by 2.91 percent by going up from Rs 1,174.3 Cr in Q2FY25 to Rs 1,208.4 Cr in Q2FY26. While the first half of this fiscal year saw a 7.29 percent YoY growth, by going up from Rs 2,275.9 Cr in H1FY25 to Rs 2,441.9 Cr in H1FY26.
Talking about the Net Profits they have dipped by 0.57 percent, going down from Q2FY25’s Rs 73.4 Cr to Rs 73 Cr in Q2FY26. But the half yearly profits have gone up by 20.13 percent, from Rs 128.1 Cr in H1FY25 to Rs 153.9 Cr in H1FY26.
The company has a 5 year profit CAGR of 179 percent, while the same for 3 years is at 58 percent. Despite consistent profitability, it has not issued dividends to date.
Additionally, the stock has given a 5 year compounded return of 26 percent, while the same for 3 years is at 21 percent.
Founded in 1949 and based in Mumbai, Patel Engineering Ltd is an Indian infrastructure company specializing in dams, bridges, tunnels, roads, piling works, and major industrial structures. With strong capabilities across hydro, irrigation, water supply, urban infrastructure, and transport, the company has a reputation for executing complex civil engineering projects and is a key player in the growth of India’s infrastructure.
-Adithya Menon
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