Mumbai: Shares of Ashoka Buildcon surged nearly 15 percent on Monday, August 31, after the infrastructure company secured a Rs 602.16-crore order from Rail Vikas Nigam Limited (RVNL).
The rally marked the stock’s biggest single-day gain in more than six years. Ashoka Buildcon shares had previously climbed 18.2 percent on April 9, 2020.
RVNL order details
Ashoka Buildcon said it received the letter of acceptance for the railway project on Saturday. The contract was awarded through percentage-rate bidding.
The company must submit a performance bank guarantee of Rs 25.51 crore to RVNL. The project also carries a defect-liability period of two years following completion.
The order covers the supply, erection, testing and commissioning of electro-mechanical systems for tunnels under the Rishikesh-Karnaprayag New Broad Gauge Rail Line Project in Uttarakhand.
The work falls under Package E-4 and covers tunnels T-13, T-14, T-15 and T-16.
Project scope
The project involves the installation of 33/11 kV and 11/0.433 kV gas-insulated substations. It also includes high-tension and low-tension cables, diesel generator sets and lighting infrastructure.
Ashoka Buildcon will additionally install uninterruptible power supply systems, ventilation equipment and firefighting systems, along with other associated infrastructure.
The company is required to complete the project within 30 months from the date work begins.
Maharashtra transmission project
Earlier in August, Ashoka Buildcon received a letter of intent from REC Power Development and Consultancy Limited for a transmission project in Maharashtra.
The project involves establishing the Sakoli substation in Bhandara district. It was awarded through the tariff-based competitive bidding route and carries annual transmission charges of approximately Rs 126.5 crore.
Share-price performance
Ashoka Buildcon shares were trading 11.1 percent higher at Rs 125.18 during Monday’s session after trimming some early gains.
Despite the sharp rally following the RVNL order, the infrastructure stock remains around 25 percent lower so far in 2026. The latest contract strengthens the company’s order pipeline and expands its presence in railway electrification and transmission infrastructure projects.
Disclaimer: This article is based on market analysis and available data; investors should consult independent financial advisers before making investment decisions.
