According to reports from Business Standard, Dilip Buildcon has been selected as the successful bidder for securing Authorization to Lay, Built, Operate, or Expand Petroleum or Petroleum Product (Air Turbine Fuel / ATF) Pipeline from Navgam to Sardar Vallabhbhai Patel International Airport, Gujarat. The Project Authority to grant license is the Petroleum and Natural Gas Regulatory Board (PNGRB). As per CNBC TV18, the company officially received the Letter of Award (LoA) from PNGRB on February 13, 2026, confirming its selection as the successful entity for the project.
As reported by Business Standard, the project entails the grant of an exclusive license by PNGRB to act as the authorized entity for the development of pipeline infrastructure for the transportation of ATF, including financing, construction, and operation of the same. The project will also include levy and collection of tariff for the transportation of ATF up to the designated delivery point for a period of 25 years. According to CNBC TV18, the company will act as the authorised entity for the development of pipeline infrastructure, including financing, construction and operation, along with the right to levy and collect tariffs for transportation of ATF up to the designated delivery point.
According to the report, the project shall be implemented through a Special Purpose Vehicle (SPV), in which Dilip Buildcon (DBL) shall hold 100% equity. The Engineering, Procurement and Construction (EPC) works are proposed to be awarded to Dilip Buildcon, representing a business opportunity valued at approximately ₹124 crore (excluding GST), to be executed over a period of 24 months. As per CNBC TV18, the engineering, procurement and construction (EPC) works are to be executed over a period of 24 months through the SPV structure.
According to CNBC TV18, for the December quarter, the company's net profit stood at ₹830 crore, compared with ₹115.3 crore in the same quarter last year. The quarter's bottom line includes a one-time exceptional gain of ₹585 crore, which significantly boosted reported profitability. However, revenue declined 17.5% year-on-year to ₹2,138 crore from ₹2,590 crore in Q3 last year. EBITDA fell 20% to ₹382 crore, compared with ₹467 crore a year ago, resulting in EBITDA margin slipping to 17.9% from 18.4%. Following the disclosure, the company has closed the trading window for insiders and designated persons in line with insider trading regulations, which will reopen 48 hours after the information is made public.
As per CNBC TV18, shares of the company were trading 3.77% down at ₹436.30 as of 12:03 pm following the announcement. The stock has declined 7.33% in the past month, reflecting mixed investor sentiment despite the significant project win. The market reaction suggests investors are focusing on the company's recent financial performance rather than the new pipeline project award. The broader context of India's energy diversification strategy, including this ATF pipeline project, represents a complex transition that balances immediate costs with long-term energy security objectives.
