Garuda Construction shares experienced a dramatic surge of 10.72%, hitting an intraday high of ₹198.20 on Tuesday, significantly outperforming the BSE Sensex which was down 0.47% at 75,784. At 9:37 am, the stock was trading 9.02% higher at ₹195.15, reflecting strong investor confidence in the company's international expansion strategy. The sharp rally came after the company announced its major Saudi Arabia project, demonstrating the market's positive reception of the substantial revenue potential from the Jeddah development. In the latest trading session, the stock was locked in 5% upper circuit at ₹187.95, reflecting continued strong investor interest in the international project.
Garuda Construction and Engineering Limited has announced that its wholly-owned subsidiary, Dream City Builders (formerly known as Garuda Arabia), has entered into a Memorandum of Understanding (MoU) with Almasarat Company Limited in connection with the proposed construction and development of a landmark tower in Jeddah, Kingdom of Saudi Arabia. The agreement was signed on September 7, 2026, representing a significant expansion of Garuda's international construction portfolio into the Saudi Arabian market. This strategic partnership demonstrates Garuda's commitment to high-value international EPC contracts in the Middle East region.
The project is expected to generate revenue of ₹1,800 crore over the approximately five-year construction period. The arrangement remains subject to requisite approvals and the official commencement of the project. In a regulatory filing made post market hours, the company reported strong Q1 FY27 financial performance with consolidated net profit jumping 48.36% to ₹41.54 crore on a 40.12% rise in revenue to ₹175.38 crore compared with Q1 FY26. This substantial revenue projection reflects the scale and complexity of the proposed development in the Saudi Arabian market, with the project expected to span approximately five years from commencement.
The development is envisioned as a distinctive 93-storey twisting tower featuring 360-degree panoramic sea views. The structure will stand at 93 storeys across a project area of approximately 1,53,451 sq. metres. Key features of the development include: - A five-star hotel comprising approximately 350 rooms across the lower 14 floors - A diamond-shaped rooftop restaurant located on the 93rd floor - The tower's design incorporates unique architectural elements that will make it a standout feature in the Jeddah skyline.
Dream City Builders, formerly known as Garuda Arabia, will undertake the complete Engineering, Procurement and Construction (EPC) scope for the project, including construction, finishing and handover of the project. The EPC approach ensures seamless project execution from conception to completion, demonstrating Garuda's commitment to delivering turnkey construction solutions in the international market. Garuda Construction and Engineering Limited is a Mumbai-based construction company incorporated in 2010 that provides end-to-end civil construction, MEP and operations and maintenance services across residential, commercial, industrial, infrastructure and hospitality projects. The company was listed on NSE and BSE in October 2024 and specializes in turnkey EPC solutions with expertise in residential, commercial, infrastructure, and renewable energy projects.
