Rs 1,776 Crore Order Book: Stock Below Rs 75 Secures Fresh CPWD Order Worth Rs 198.31 Crore

Highway Infrastructure is seeking to build its engineering, procurement and Construction business alongside its larger tollway operations, which contributed 73.7 per cent of consolidated FY26 revenue. The company has now received a letter of acceptance from the Central Public Works Department (CPWD) for a Rs 198.31 crore civil construction contract in Madhya Pradesh.

The assignment involves planning, design and construction of residential and non-residential facilities for the Central Industrial Security Force (CISF) 12th Reserve Battalion at Jamunia Talab village in Sehore district. The project will be executed under Engineering, Procurement and Construction (EPC) Mode-I, with a stipulated completion period of two years.

The new award is Highway Infrastructure’s largest civil construction contract to date, according to the company. It takes the total Order Book to Rs 1,776.19 crore as of October 31, 2026, compared with a consolidated order book of Rs 1,133 crore at the end of March 2026. The CPWD order alone represents about 11 per cent of the latest backlog.

The contract strengthens the company’s government infrastructure portfolio at a time when it is attempting to widen its EPC presence beyond roads and toll-related operations. Its construction activities already include roads, bridges, affordable housing, industrial areas, information technology parks, schools and allied civil works. The company had 25 active EPC projects in FY26, when EPC Infrastructure accounted for 19.8 per cent of consolidated revenue.

For FY26, consolidated total income rose 25.6 per cent YoY to Rs 633.4 crore, while profit after Tax increased 42 per cent to Rs 31.8 crore. However, construction revenue recognition depends on execution progress, certification by the customer and billing cycles. This makes timely mobilisation, cost control and working-capital discipline important as the company takes on a larger two-year government assignment.

Whole-Time Director and Chief Financial Officer Anoop Agrawal said the CPWD project broadens the company’s experience in critical government infrastructure work and supports its participation in larger construction opportunities.

As of 10:05 am on November 5, 2026, Highway Infrastructure shares were trading at Rs 70.14. The stock was down 3.23 per cent from the previous close of Rs 72.48, although the movement cannot be directly linked to the contract announcement. At the prevailing price, the shares were about 9.1 per cent below their 52-week high of Rs 77.16. The company’s market capitalisation stood at Rs 519.83 crore.

What This Means for Investors

The CPWD award improves revenue visibility for the civil construction business and gives Highway Infrastructure a meaningful government project to execute over the next two years. The order book has expanded sharply since March 2026, supporting management’s objective of scaling EPC operations alongside toll collection. It also fits the company’s stated strategy of selectively pursuing larger projects while retaining discipline on project economics.

The development is potentially supportive for the business case because the order is sizeable relative to the company’s existing EPC activity and diversifies its project mix. Its financial benefit, however, will depend on execution pace, customer certification, material and labour costs, and collection cycles. These factors are particularly relevant after the June 2026 quarter, when profit after tax margin narrowed to 0.35 per cent despite strong revenue growth. At 20.09 times trailing 12-month earnings, the valuation continues to place importance on backlog conversion and a recovery in operating margins.

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