Ashoka Buildcon Ltd has received a Letter of Acceptance (LoA) worth ₹499.95 crore, including GST, from the North Western Railway, Jaipur, for upgrading its existing electric traction system.
The scope of work includes design, supply, erection, testing, and commissioning of a 2×25 kV traction system, replacing the current 1×25 kV network.
It also covers modifications to overhead equipment, enabling trains to operate at speeds of up to 160 kmph across sections of the Jaipur Division. The project is scheduled for completion within 24 months.
Following the announcement, shares of Ashoka Buildcon touched an intraday high of ₹187.01 before trading at ₹184.71, up 0.88% on NSE at 2:21 PM.
Earlier this month, the company reported a consolidated net profit of ₹217.3 crore for Q1FY26, a 44.6% increase over ₹150.3 crore in the same period last year, supported by improved operating efficiency.
Revenue for the quarter, however, fell 23.5% year-on-year to ₹1,887 crore, reflecting a slowdown in project execution. Despite this, the company maintained steady operating profitability, with EBITDA flat at ₹599 crore.
Margins strengthened significantly, rising to 31.7% from 24.3% a year earlier on the back of a better project mix and cost efficiencies.
The board also approved an increase in the ceiling for issuance of commercial papers from ₹200 crore to ₹300 crore, providing greater financial flexibility to support upcoming projects.
