Afcons Infrastructure Ltd. shares are in focus following the cancellation of two road construction contracts in Croatia. According to reports from CNBC TV18, the company received communication on May 16 from the client regarding the cancellation of both tenders as the price of its offer exceeded their planned or secured financial resources. The company had initially been declared the lowest bidder for two separate packages by Croatian Motorways Ltd. to construct roads in the Republic of Croatia, as intimated to the exchanges on July 17, 2025.
Despite the cancellations, Afcons Infra secured a significant railway project last week. As reported by CNBC TV18, the company was selected as the most suitable bidder for the rehabilitation and construction of a railway line in Croatia. The project involves reconstruction of the existing track and construction of a second track on the Dugo Selo-Novska railway line, including overhead electrification, signaling and telecommunication works in the Republic of Croatia. This €677.07 million order marks Afcons International's entry into Europe and represents its largest international order to date.
The company is scheduled to report its fourth quarter earnings on Monday, adding to market focus. According to CNBC TV18, shares of Afcons Infra ended the previous trade session 1.6% higher at ₹336 apiece. However, the stock has declined 14.5% this year and remains below its issue price, reflecting ongoing market challenges despite recent positive developments.
