Dilip Buildcon Ltd shares surged over 6% on Wednesday after the company was declared the lowest (L1) bidder for a ₹668 crore flood control project in Gujarat. According to CNBC TV18, the company announced that it had been identified as the L-1 bidder for the tender issued by the Narmada Water Resources, Water Supply & Kalpasar Department of the Government of Gujarat. The project involves construction of a flood protection embankment on the river Narmada in Bharuch district on an engineering, procurement and construction (EPC) basis. The contract is to be executed over a period of 24 months and forms part of Gujarat's broader efforts to enhance flood protection infrastructure.
The latest win comes amid a steady build-up in the company's order book. As reported by CNBC TV18, as of December 31, 2025, Dilip Buildcon's consolidated order book stood at about ₹29,372 crore, its highest level to date, supported by improved execution and a pick-up in tendering activity after elections. This represents a significant milestone for the infrastructure company's project pipeline.
Recently, the company also received a Letter of Award from the Petroleum and Natural Gas Regulatory Board for a ₹124 crore air turbine fuel pipeline project in Gujarat, further strengthening its presence in infrastructure and energy-linked segments. As reported by Moneycontrol, the PNGRB awarded the company authorization to lay, build, operate, or expand a petroleum or petroleum product pipeline from Navgam to Sardar Vallabhbhai Patel International Airport in Gujarat. The said EPC work is valued at approximately ₹124 crore and is to be executed over a period of 24 months.
In its December quarter results, Dilip Buildcon reported a sharp rise in net profit, aided by a one-time exceptional gain, even as revenue and operating performance remained under pressure. According to CNBC TV18, the company reported revenue of ₹2,138 crore in the December 2025 quarter, which represents a 17.5% decline year-on-year from ₹2,590 crore. However, the company's net profit saw a substantial increase of ₹830 crore compared to ₹115.3 crore in the previous year, highlighting strong profitability improvements despite the dip in top-line revenue. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 20% to ₹382 crore from ₹467 crore in the previous year, with margins contracting to 17.9% from 18.4% in the year-ago period. The company reported a one-time exceptional gain of ₹585 crore during the quarter.
Ahead of the announcement, shares of Dilip Buildcon were trading up 3% at ₹448 around 10 am on Wednesday, as reported by CNBC TV18. The stock has gained 8.8% in the past year, demonstrating sustained investor confidence despite short-term volatility. The stock had touched its 52-week high of ₹587.90 on September 24, 2025, and its 52-week low of ₹381.05 on April 7, 2025. Currently, the stock is trading 26.01% below its 52-week high and 14.16% above its 52-week low. The Economic Times reports that the stock price-to-earnings (P/E) ratio of 5.01, price-to-sales (P/S) ratio of 0.62, and price-to-book (P/B) ratio of 1.34 suggest the market is valuing the company at relatively low multiples compared to its earnings, sales, and book value. From a technical perspective, the daily Relative Strength Index (RSI) stood at 39.7, indicating neutral-to-slightly-oversold territory, while the stock is trading below all eight simple moving averages, suggesting short-term bearish momentum.
