Patel Engineering Secures Major ₹798 Crore Contracts
Investors are likely to show strong interest in Patel Engineering shares during Thursday's trading session after the infrastructure company announced securing significant new orders. The company made this announcement through an official exchange filing after market hours, revealing it has received two Letters of Intent from Saidax Engineers and Infrastructure Private Limited.
Contract Details and Scope of Work
The comprehensive contracts, valued at ₹798 crore, encompass a wide range of mining activities. The scope includes excavation work, composite operations, overburden removal with rehandling, coal cutting using surface miners, and loading and transportation of coal. Additionally, the company will handle the hiring of all necessary plant and equipment, supply the required diesel quantity, and provide complete maintenance of plant and equipment with all required staff and labor for work execution.
The company clarified that these orders have a substantial nine-year duration, providing long-term revenue visibility. Importantly, Patel Engineering confirmed that neither the promoters nor promoter group companies have any interest in Saidax Engineers and Infrastructure Private Limited, and the contracts do not qualify as related-party transactions.
Financial Performance and Order Book Strength
Patel Engineering's recent financial performance shows steady growth. For the second quarter of FY26, the company reported consolidated revenue from operations of ₹1,208 crore, marking a 2.91% year-on-year increase from ₹1,174 crore in Q2FY25. While operating EBITDA saw a marginal decline of 2% YoY to ₹159 crore from ₹162 crore, the company maintained profitability with net profit at ₹77 crore.
The company's order book position remains robust, standing at ₹15,146 crore at the end of Q3FY25. A significant portion of these projects, approximately 62%, belongs to the hydroelectric segment. Currently, Patel Engineering holds 16 hydroelectric projects valued at ₹9,373 crore, including major ventures such as Subansiri HEP (2,000 MW), Dibang Multipurpose Project (2,880 MW), Kiru HEP (624 MW), Arun-III HE Project (900 MW), Shongtong HEP (450 MW), and Kwar HEP (540 MW).
Beyond hydroelectric projects, the company maintains a strong presence in the irrigation sector with 21 projects valued at ₹3,023 crore, demonstrating its diversified expertise in infrastructure development across multiple domains.
