Ashoka Buildcon has won a significant contract worth over ₹290 crore from the North Eastern Railway to upgrade electric traction power supply installations. This project will be executed on an Engineering, Procurement, and Construction (EPC) basis and is expected to be completed within 24 months from the start date.
- The contract is valued at ₹290.23 crore.
- It involves design, supply, erection, testing, and commissioning of traction substations and switching posts.
- The project covers the Gorakhpur Cantt–Chhapra Gramin section in the Northeastern Railway’s Varanasi Division.
- The contract includes a 5% performance bank guarantee and a two-year defect liability period.
- Ashoka Buildcon’s total order book stood at ₹15,251 crore as of June 30, 2026.
- The company’s stock has declined 39% year-to-date.
What does the new order from North Eastern Railway involve?
The contract requires Ashoka Buildcon to design, supply, erect, test, and commission traction substations and associated switching posts. These facilities will support the 2x25 kV autotransformer traction feeding system in the Gorakhpur Cantt–Chhapra Gramin section of the Northeastern Railway’s Varanasi Division. The project aims to upgrade the electric traction power supply installations to improve railway operations.
How will the project be executed?
The project will be carried out on an Engineering, Procurement, and Construction (EPC) basis. This means Ashoka Buildcon will be responsible for all aspects of the project, from engineering design to procurement of materials and construction. The contract also includes a performance bank guarantee of 5% of the contract price and a defect liability period of two years to ensure quality and timely completion.
What is the current financial status of Ashoka Buildcon?
Despite securing this large contract, Ashoka Buildcon has faced financial challenges recently. In the first quarter of the financial year 2026-27, the company’s consolidated net profit dropped 41% to ₹128 crore compared to ₹217 crore in the same period last year. Revenue from operations decreased by 21% year-on-year to ₹1,500 crore. Operating profit (EBITDA) declined 57% to ₹258 crore, and the EBITDA margin shrank from 31.69% to 17.18%. The company’s consolidated debt stood at ₹2,773 crore as of June 30, 2026.
How has Ashoka Buildcon’s stock performed recently?
Ashoka Buildcon’s stock has seen a decline of 39% since the beginning of the year. The shares closed at ₹395.65 on the National Stock Exchange on October 9, 2026, down 0.44% for the day. Over the past month, the stock lost 10%, and over six months, it dropped 16%. The stock reached a 52-week high of ₹531.65 on October 10, 2025, and a 52-week low of ₹381.55 on July 24, 2026. The company’s market capitalization was ₹6,427.13 crore as of October 9, 2026.
What is the significance of Ashoka Buildcon’s order book?
As of June 30, 2026, Ashoka Buildcon’s total order book stood at ₹15,251 crore. This large order book reflects the company’s ongoing projects and future revenue potential. The new contract from North Eastern Railway adds to this backlog and demonstrates the company’s continued involvement in major infrastructure projects.
