Shares of Dilip Buildcon witnessed a significant upswing on Monday, November 24, climbing 3% to reach ₹442.75 per share on the National Stock Exchange. This positive movement came following the company's major announcement about securing a prestigious contract from National Aluminium Company Limited (NALCO).
Major Contract Win Boosts Investor Confidence
In an official exchange filing, Dilip Buildcon confirmed that it has emerged as the L-1 bidder (lowest bidder) for the tender floated by NALCO, a Government of India Enterprise. The total contract value stands at an impressive ₹5,000 crore, excluding GST, marking one of the significant infrastructure developments in the mining sector.
The company secured the MDO Contract for Development and Operation of the Pottangi Bauxite Mines, which encompasses comprehensive development work. The project includes constructing the Overland Conveyor Corridor (OLCC) and associated infrastructure, targeting a total mining volume of 84 million tonnes.
Project Timeline and Financial Breakdown
The massive project will unfold in two distinct phases. The initial phase involves three years of Engineering, Procurement, and Construction (EPC) work valued at ₹1,750 crore. This stage will focus on critical infrastructure development including OLCC construction, road building, water intake systems, and transportation infrastructure.
Following the construction phase, Dilip Buildcon will undertake mining operations spanning 22 years. This operational phase involves extracting 77 million tonnes of material, with an estimated value of ₹3,250 crore based on the current mining rate of ₹423 per tonne.
Financial Performance and Order Book Strength
Despite the recent contract win, Dilip Buildcon's Q2 results for 2025 showed mixed performance. The company reported a net profit of ₹182 crore for the September quarter, representing a 22.8% decline compared to ₹235 crore in the same period last year.
Revenue also saw a downward trend, decreasing by 21.8% year-on-year to ₹1,925 crore from ₹2,461 crore, primarily attributed to slower project execution. However, the company demonstrated improved operational efficiency with EBITDA at ₹470.6 crore and operating margin expanding to 24.5% compared to 20.3% a year earlier.
The company maintains a robust order book position, with net order book worth ₹18,610 crore as of September 30, 2025. This portfolio showcases diversification across multiple segments:
- Irrigation: 25.89%
- Mining: 21.96%
- Roads and Highways: 14.02%
- Tunnels: 9.93%
- Special Bridge and Urban Development: 9.86%
- Metro projects: 8.82%
- Optical Fiber: 5.18%
- Water Supply: 2.84%
- Renewable Energy: 1.50%
This significant contract win comes at a crucial time for Dilip Buildcon, whose shares had declined over 8% in the past one month and six months, with a year-to-date decrease of 4%. The NALCO project is expected to provide substantial revenue visibility and strengthen the company's position in the mining and infrastructure sector.
