Synopsis: RKEC Projects Limited as of April 23, 2026, following a critical legal setback regarding its high-profile Mumbai project. With the stock currently trading at Rs. 36.83, the company is grappling with the termination of a Rs. 186.67 crore contract for the construction of passenger jetty and terminal facilities near the Gateway of India. Bombay High Court’s refusal to stay the invocation of bank guarantees worth Rs. 31.86 crore, is impacting the firm’s financial health and project pipeline.
RKEC Projects Limited, an Indian micro-cap firm, has recently faced major disruption within its portfolio of maritime projects. On April 21, 2026, the Maharashtra Maritime Board (MMB) officially terminated its contract with RKEC awarded in October 2024 due to frequent delays. Though RKEC claims the delays were caused by outside factors like redesigning the facility and several Public Interest Litigations (PILs), the Bombay High Court on April 23, 2026, refused to place a temporary ban on MMB’s actions regarding the invocation of Rs. 31.86 crore bank guarantees.
As of April 23, 2026, the last traded price of RKEC Projects share was equal to Rs.36.83 per share. Thus, it demonstrates a daily drop of 4.26% as a result of the negative development mentioned above. At present, the total market cap amounts to about Rs. 95.10 crore, as the share price is significantly lower than last year’s 52-week high – Rs. 89.99.
In Q3 FY26, RKEC’s revenue collapsed by 72.56% year-on-year (YoY), which resulted in reduced net sales at Rs. 32.65 crore. At the same time, profits dropped 79.30% to Rs. 1.71 crore. Moreover, interest expenses have risen sharply by 51.01% quarter-on-quarter.
The Q4 FY26 audited results are pending, termination of the Rs. 186.67 crore Radio Club Jetty project can be considered as a major problem. During the third quarter, RKEC managed to maintain high profitability with operating margin equaling 21.01%. Now, loss of such a valuable contract together with the threat of losing over Rs. 30 crore in bank guarantees poses a significant threat for the upcoming quarterly financial report.
RKEC Projects Limited approaches the closing phase of the fiscal year with a tough road ahead. Despite strong promoter holding of 66.80%, recent legal setbacks and contract cancellation have seriously damaged RKEC’s financial status and order flow. Major risks include possible losses during arbitration. Besides, the company will need to obtain additional contracts to compensate for Rs. 186.67 crore losses from the Radio Club Jetty project.
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