Shares of Afcons Infrastructure Limited witnessed severe selling pressure on Wednesday, February 25, dropping as much as 4.2% to hit an intraday low of ₹295 on the BSE. As per The Economic Times, the stock was underperforming the broader market with the NIFTY Smallcap 100 index trading higher. The stock was witnessing higher than usual trading activity with trading volume spiking by 3 times to 7.92 lakh shares compared with an average trading volume of 2.47 lakh shares. On the BSE, 38,000 shares changed hands compared with an average of 26,000 shares traded daily in the past two weeks.
According to reports from CNBC TV18, The Economic Times, and Upstox, Afcons Infrastructure Ltd, the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, announced on Tuesday (February 24) that Société Autoroutière du Gabon (SAG) has issued a notice terminating the EPC contract for the design, construction, rehabilitation, and upgradation of National Road NR1, approximately 117 km, with a contract value of €113.03 million. The company stated that major portions of the project, around 93.47% as of December 31, 2025, have been completed and opened to traffic nearly two years ago, with certain balance portions pending land handover. As per The Economic Times, the engineering, procurement and construction contract was from a private client for the stretch of approximately 117 km of National Road NR1 from PK 24+000 to PK 105+000.
As reported by CNBC TV18, The Economic Times, and Upstox, Afcons stated that the termination is inconsistent with the contractual terms and applicable law, and it continues to pursue contractual and legal remedies. The company confirmed that the termination is not expected to have any material adverse impact on ongoing operations or execution of other projects. The dispute is project-specific and does not impact Afcons' overall order book, operational capability, or business outlook. According to Upstox, Afcons had informed exchanges in January that differences rose between the company and SAG with respect to certification of certain balance works and release of corresponding payments. In accordance with the dispute resolution mechanism under the contract, the company has initiated arbitration proceedings under the rules of the International Chamber of Commerce (ICC) towards delays and additional costs incurred during execution. The matter is currently under arbitration and is sub judice.
According to CNBC TV18 and The Economic Times, Afcons reported mixed financial results for the third quarter of FY26. The company posted a net profit of ₹97 crore for Q3FY26, down 34.8% from ₹148.8 crore a year earlier. Revenue for the quarter fell 7.3% year-on-year to ₹2,975 crore, compared with ₹3,211 crore in the corresponding period last year. However, operating performance showed resilience with EBITDA rising 12.3% year-on-year to ₹409.5 crore from ₹364.6 crore, while the EBITDA margin expanded sharply to 13.8% from 11.4% a year ago, aided by better cost management.
As reported by CNBC TV18 and The Economic Times, for the nine months ended December 2025, Afcons reported total income of ₹9,545 crore. EBITDA for the period grew 1.8% year-on-year to ₹1,269 crore, excluding a one-time labour code impact of approximately ₹77 crore, with margins improving to 13.3%. Profit after tax for the nine-month period stood at ₹339 crore. The company's order book remained healthy at ₹31,543 crore as of December 2025, translating into a book-to-bill ratio of 2.5 times, providing revenue visibility for the coming years. Order inflows during 9MFY26 stood at ₹2,640 crore.
