Overview: Afcons Infrastructure secured Rs. The 1.087 billion Ugandan road project has secured a favorable arbitration award, flagging the Gabon bond dispute, but liquidity remains and operations and order book are unaffected.
During trading on Sunday, shares of Shapoorji Pallonji Group’s flagship infrastructure engineering and construction company surged nearly 3 per cent on the BSE after the company announced securing infrastructure projects worth over 100 million euros (approximately Rs 1,087 crore).
Market capitalization is Rs. Afcons Infrastructure Limited’s shares worth Rs 12,484 crore were trading in the green. The BSE price stood at Rs 339.45, up more than 2% compared to the previous closing price. 331.6. The company’s stock has posted a negative return of about 23% over the past six months, and is down more than 13% in the past month.
Uganda large-scale road project and arbitration award
Afcons Infrastructure Limited has secured a strategic road infrastructure project worth over €100 million, or about Rs 100 crore, in Uganda, Africa, according to its latest regulatory filing. 1.087 billion. The road project is funded by multilateral development agencies.
In another development, the company received an arbitration award in its favor on January 29, 2026 in a dispute with IRCON International Limited. This award includes a cash payment of Rs. Along with return of bank guarantees worth Rs 2,703 crore. 27.54 billion related to tunnel construction under the USBRL project. Afcons said the award will have a positive impact on its financial position.
Gabon project dispute under arbitration
In addition, Afcons disclosed that it has received communication from Lombard Insurance Company regarding the activation of bonds worth approximately EUR 17.85 million by Société Haute Routieres du Gabon (SAG) in connection with the EPC agreement with SAG for road projects in Gabon dated September 10, 2020. Lombard Insurance Company provided surety on the company’s behalf.
SAG, the investment arm of Meridiam (France), has been awarded a 30-year public-private partnership interest by the Republic of Gabon to repair, construct, finance and operate the Trans-Gabon National Highway. Under this concession, Afcons has been awarded an EPC contract from SAG for the design, construction and rehabilitation of approximately 117 km of National Highway NR1 with a total value of approximately EUR 113.03 million.
The company highlighted that as of December 31, 2025, approximately 93.47 percent of the project was completed and opened to traffic. However, disputes have arisen between Afcons and SAG regarding the certification of certain outstanding works and the corresponding exemption of payments. In line with contractual dispute resolution mechanisms, Afcons has initiated arbitration proceedings under the International Chamber of Commerce (ICC) rules to address enforcement delays and additional costs. The matter is currently in arbitration.
Afcons said it believes the exercise of the bonds is inconsistent with the terms of the agreement and that the company will continue to pursue all contractual and legal remedies. Importantly, management has clarified that this dispute is project-specific and will not impact the company’s overall order status, ability to execute, or long-term business outlook.
The company further emphasized that the issuance of the bonds is not expected to have a material adverse impact on the company’s liquidity position, ongoing operations, or execution of other projects.
finance etc.
Afcons Infra reported a slight increase in operating revenue, representing an increase of approximately 1% year-on-year. 296 billion in Q2 FY25. The second quarter of FY2026 is 298.8 billion yen. In contrast, net profit for the same period declined from Rs 100 crore. 13.5 billion and $150 million, representing a decrease of about 22 percent year-on-year.
As of September 2025, the company reported an order book of Rs 100 crore. Orders worth 32,681 million rupees were inflow. The first half of FY2026 is 126.8 billion yen. Urban infrastructure projects, including underground and elevated metro works, accounted for the largest share at around 32 percent. This is followed by hydropower projects and underground projects, which account for about 25 percent. Urban infrastructure projects related to bridges and elevated walkways account for approximately 22%, and marine and industrial projects account for approximately 13%. Land transportation projects account for nearly 6% of orders, with the remaining 2% coming from the oil and gas sector.
Afcons Infrastructure Limited is engaged in the business of marine works, highways, bridges, metro works, power plants, tunnels, oil & gas, LNG tanks and other general civil engineering projects both in India, Africa and Middle East countries.
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