Markets India
Ashoka Buildcon shares jumped 14% after winning an ₹865.90 crore NHAI contract, though the stock remains down 43% year-to-date amid financial challenges.
Ashoka Buildcon's share price surged 14% on November 12, 2026, following news of its ₹865.90 crore NHAI contract for a 26.6-km expressway in Gujarat. The bid was submitted on November 5, but the stock remained below its 52-week high of ₹204.15 from earlier this year.
The company's recent financial performance raises concerns despite the positive development. Q2 FY27 revenue fell 18.72% to ₹1,504.62 crore compared to ₹1,851.18 crore in the same period last fiscal year. A net loss of ₹118.96 crore in Q2FY27 contrasts with a profit of ₹90.70 crore in Q2FY26.
The NHAI contract expands Ashoka Buildcon's highway projects, while an additional ₹290.23 crore railway deal from North Eastern Railway adds to its infrastructure portfolio. However, the stock remains 43% below its peak and faces pressure to improve profitability amid declining revenue trends.
Ashoka Buildcon will execute the NHAI project under EPC model starting after Letter of Acceptance approval. The railway contract from North Eastern Railway is already underway with no additional milestones disclosed.
Short-term gains from new contracts may not offset long-term profitability concerns as Ashoka Buildcon navigates declining revenue and operational challenges.
Topics: Infrastructure Development, Stock Market News, India Markets, Construction Companies, Financial Performance, Public Sector Projects
#AshokaBuildcon #NHAIContractWin #StockMarketUpdate #InfrastructureDeals #EPCProjects
Source: LiveMint
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