Synopsis:
Dilip Buildcon shares surged 6.5 percent intraday after posting a 93.6 percent YoY jump in net profit to Rs. 271 crore in Q1FY26, despite a 16.4 percent drop in revenue. The growth was aided by a spike in other income and Rs. 169 crore in exceptional gains.
A construction and infrastructure stock rallied post its quarterly earnings, despite a sequential decline in revenue. The year-on-year growth in profit, backed by a surge in other income and exceptional items gains, improved investor sentiment.
Dilip Buildcon Ltd opened at Rs. 484.35 and surged to an intraday high of Rs. 505, rising 6.5 percent from the previous close of Rs. 474.10. The company now has a market capitalization of Rs. 7,058.53 crore.
What’s the News?
Quarter-on-quarter, revenue from operations for the quarter ended June 2025 fell 15.4 percent from Rs. 3,096 crore to Rs. 2,620 crore. Operating profit declined 21.1 percent to Rs. 521 crore from Rs. 661 crore, while profit before tax slipped 5.7 percent to Rs. 330 crore from Rs. 350 crore. Net profit was marginally lower at Rs. 271 crore, compared to Rs. 277 crore in Q4FY25, reflecting a decline of 2.2 percent.
Year-on-year, revenue dropped 16.4 percent from Rs. 3,134 crore to Rs. 2,620 crore. However, operating profit rose 9 percent from Rs. 478 crore to Rs. 521 crore. Profit before tax grew 192 percent from Rs. 113 crore to Rs. 330 crore, and net profit surged 93.6 percent from Rs. 140 crore to Rs. 271 crore.
This sharp profit jump was largely aided by a rise in other income, which jumped from Rs. 20 crore to Rs. 216 crore, and the inclusion of Rs. 169 crore under exceptional items during the quarter.
Other income witnessed a significant rise to Rs. 216 crore, compared to Rs. 20 crore in the same quarter last year. Exceptional gains worth Rs. 169 crore were also booked during the quarter, contributing to the strong YoY profit growth. The company’s shareholding data revealed a reduction in FII holding, which fell from 3.13 percent in March 2025 to 2.76 percent in June 2025.
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Operational Highlights
During the quarter, the company secured a Letter of Acceptance for the construction of a twin-tube unidirectional tunnel project in Kerala. It also successfully completed two HAM projects worth Rs. 1,605 crore.
These include the Raipur–Visakhapatnam CG-2 project in Chhattisgarh with an EPC cost of Rs. 925 crore and the Bangalore–Chennai Expressway project (Phase 2, Package 3) in Andhra Pradesh worth Rs. 680 crore.
The total order book stood at Rs. 13,695 crore as of Q1FY26. In terms of segment mix, mining formed the largest share at 29 percent, followed by irrigation at 22 percent and roads and highways at 18 percent. Model Wise, HAM projects accounted for 18 percent of the order book, while EPC formed the remaining 82 percent.
About the Company
Dilip Buildcon Ltd, incorporated in 2006, is a leading infrastructure development company operating primarily on an Engineering Procurement and Construction (EPC) basis. It undertakes infrastructure contracts from central and state governments and operates several Special Purpose Vehicles (SPVs) for project execution.
Written By Manan Gangwar
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