Power Sector Boom: This Company Bags Rs 213 Crore Smart Grid Order

SUGS Lloyd Limited has received a Letter of Award from Marshal Enterprises for low-tension and high-tension infrastructure loss-reduction works in Punjab, in a contract valued at Rs 213.47 crore including GST.

The project will be executed on a back-to-back basis under the Revamped Distribution Sector Scheme, or RDSS. The underlying works were originally awarded by Punjab State Power Corporation Limited, or PSPCL, and relate to strengthening distribution infrastructure to reduce network losses across the state.

Marshal Enterprises, described as a domestic entity, has awarded the work to SUGS Lloyd. The company said the project must be completed within 15 months from the date of issuance of the Letter of Award.

The contract adds a sizeable distribution-infrastructure assignment for SUGS Lloyd, whose operations span power transmission and distribution, grid modernisation, Solar EPC and specialised electrical products. On a headline basis, the order value is equivalent to about 71 per cent of the company’s FY2025-26 consolidated revenue from operations of Rs 300.73 crore. However, the comparison is indicative because the newly announced order value includes GST.

The award also aligns with SUGS Lloyd’s stated strategy of expanding its presence in distribution modernisation and smart-grid-linked projects. RDSS is designed to support loss reduction, system strengthening and operational improvement at power distribution companies, creating an addressable market for contractors executing network upgrades, substations, automation and related electrical infrastructure.

SUGS Lloyd had reported an Order Book of about Rs 807 crore as of June 30, 2026, according to management’s latest quarterly commentary. Management has said that it is seeking to bid selectively, with a focus on projects offering acceptable execution and payment conditions rather than solely increasing order-book size.

The latest contract provides visibility for the company’s power T&D operations, although execution and collection discipline will remain important. Distribution-sector projects can require substantial working capital because of equipment procurement, site mobilisation, milestone-based billing and payment cycles involving utilities and government-linked entities. SUGS Lloyd has previously identified receivables and working-capital management as key operational priorities.

In FY2025-26, the company reported a 70.7 per cent increase in consolidated revenue to Rs 300.73 crore, while profit after Tax before associate profit rose to Rs 28.69 crore from Rs 16.72 crore in the preceding year. In the most recently supplied quarterly financial data, net sales stood at Rs 78.40 crore and profit after tax was Rs 7.50 crore, compared with Rs 62.57 crore and Rs 6.10 crore, respectively, in the previous quarter.

SUGS Lloyd said neither its promoters nor members of its promoter group or group companies have any interest in Marshal Enterprises. It added that the contract does not qualify as a related-party transaction.

As of 3:55 PM on September 22, 2026, SUGS Lloyd shares were trading at Rs 258.65, up 4.99 per cent from the previous close of Rs 246.35. The stock was about 10.6 per cent below its 52-week high of Rs 289.20, while its one-year gain of 128.1 per cent compared with a 3.73 per cent decline in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.