Ashoka Buildcon's stock surged by nearly 15%

RVNL Order SpecificationsProject Scope: The domestic contract focuses on the supply, erection, testing, and commissioning of electro-mechanical (E&M) systems for Tunnels T-13, T-14, T-15, and T-16 of the Rishikesh-Karnprayag New Broad Gauge Rail Line Project in Uttarakhand. Technical Requirements: The execution involves installing 33/11kV and 11/0.433kV GIS substations, high/low tension cabling, diesel generator sets, ventilation, and fire-fighting networks. Execution Timeline: The project is slated for completion within 30 months from the commencement date and carries a two-year defect liability period. Financial Terms: Secured via percentage rate bidding, the contract mandates Ashoka Buildcon to submit a performance bank guarantee of ₹25.51 crore to RVNL. Broader Strategic RealignmentThis RVNL win substantially bolsters Ashoka Buildcon’s non-road backlog, easing its historical concentration risk tied to NHAI projects. As of the end of Q1 FY27, the company reported a robust total order book of ₹15,251 crore, offering excellent revenue visibility for the medium ***** the company is actively expanding its footprint in the power sector. Earlier in August, Ashoka Buildcon secured a Letter of Intent from REC Power Development and Consultancy for establishing the Sakoli substation in Maharashtra through tariff-based competitive bidding. The transmission project guarantees annual transmission charges of approximately ₹126.5 ***** will likely monitor the margin impact of these new segment entries, as initial mobilization costs for non-road projects can temporarily pressure EBITDA margins before stabilizing during the execution phase.