Afcons’ Biggest European Win Yet—₹6,800 Crore Croatian Rail Project

Order Overview Afcons Infrastructure emerged as the lowest bidder for a ₹6,800 crore railway rehabilitation and construction project in the Republic of Croatia, awarded by HŽ Infrastructure Ltd. The contract excludes VAT and is valued at approximately €677.07 million. Scope & Timeline The project covers reconstruction of the existing single-track line and the addition of a new second track on the Dugo Selo–Novska section. It also includes overhead electrification, signalling, and telecommunication works. The completion timeframe is set at 72 months from the commencement date post-award. Recent Order Wins in Croatia This is Afcons’s third major order in Croatia within a week. On July 17, the company secured two road construction contracts worth ₹2,398 crore (9 km) and ₹2,137 crore (11.5 km), both with a 42-month completion period. Company Financials & Outlook In FY25, Afcons posted a total income of ₹13,023 crore and a PAT of ₹497 crore, with EBITDA growing by 4.99 percent year-on-year to ₹1,662 crore. Management targets 20–25 percent revenue growth in FY26, backed by a robust order pipeline of ₹30,000–35,000 crore for the year. Additional Insights Afcons is actively expanding its global footprint, with a presence in over 25 countries across Africa, the Middle East, and Europe. The company’s strengthening order book bolsters its stock outlook; shares ended at ₹418.75 on BSE after today’s announcement, up 0.36 percent. Beyond Croatia, Afcons is bidding for major metro and infrastructure projects in India and Dubai, targeting long-term revenue diversification. With electrified rail corridors gaining priority globally, similar EPC contracts could drive higher margins and faster execution timelines. Investors may watch for detailed project financing structures and currency-hedging strategies, given the euro-denominated contract value.