Mumbai: Patel Engineering Ltd. saw its shares soar over 15 percent on Thursday, November 27, after announcing that it secured two new Letters of Intent (LoIs) worth a combined Rs 798.19 crore. The stock rose to Rs 37.87, marking a 14.2 percent intraday gain. Despite this surge, the company’s shares remain down 30 percent in 2025. The sharp rise came as investors responded positively to the company strengthening its order pipeline with large-scale project wins.
Details of the Rs 798-Crore Contracts
The newly awarded LoIs relate to major excavation work, coal handling, and transport activities for a South Eastern Coalfields Ltd. (SECL) project in Chhattisgarh. The contract spans nine years and includes large-scale operations such as overburden removal, rehandling, coal cutting using surface miners, loading, and transportation.
The scope also covers hiring and maintaining all required machinery, arranging diesel supplies, and providing the necessary workforce for seamless project execution. These contracts reinforce Patel Engineering’s strategic presence in the mining and excavation space.
Massive Pipeline Strengthens Growth Outlook
According to the company’s management, these LoIs add to an already significant tender pipeline. Patel Engineering has over Rs 34,000 crore worth of bids under evaluation. Additionally, opportunities worth Rs 18,000 crore are expected to open up for bidding within the current fiscal year.
As per analysts, nearly Rs 1 lakh crore of projects may be available for bidding in the next one to two years, especially in the company’s core operational areas. At the end of the September quarter, Patel Engineering’s order book stood at Rs 15,146.4 crore, and management expressed strong confidence that this will expand substantially over the coming year.
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