Dilip Buildcon named L-1 for Rs 1,265 crore power project

Dilip Buildcon Limited

has been declared the L-1, or lowest, bidder by REC Power Development and Consultancy Limited for a Rs 1,265 crore intra-state power transmission project in Solapur, Maharashtra, excluding GST. The project involves building, owning, operating and transferring a 400 KV GIS Solapur/Paranda switching station in Dharashiv, on a BOOT basis under tariff based competitive bidding. DBL will acquire 100% equity in the project's SPV to act as transmission service provider, and construction must finish within 24 months of the effective date. This adds to an order book of Rs 28,830 crore as of March 31, 2026. At the time of the announcement, DBL's market cap stood at Rs 6,920 crore. This is a step further into non-highway infrastructure for a company that built its scale on road EPC contracts. That fits the company's broader shift toward owning long-term contracted utility infrastructure rather than commodity-sensitive road building. The L-1 status is not yet a signed contract, so the Transmission Service Agreement and SPV acquisition still need to be formalised before this becomes a firm order. The 24 month construction timeline is tight for a transmission project of this scale, and delays in land acquisition or right-of-way clearances would push out revenue recognition. Financing a BOOT asset also requires upfront equity and debt, which needs watching given DBL's existing leverage profile. I am watching formal signing of the Transmission Service Agreement, SPV equity acquisition, and clearance progress ahead of construction start. This L-1 win is a positive step in DBL's diversification, but stays provisional until formally signed. I am watching over a 0 to 3 month horizon for that confirmation. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.