Infrastructure and highway construction firm Ashoka Buildcon has received a letter of acceptance from North Eastern Railway for a ₹290.23 crore contract to upgrade electric traction power supply installations in Uttar Pradesh.
In a regulatory filing dated October 9, the company said the project covers the Gorakhpur Cantt–Chhapra Gramin section of the Varanasi division. The contract involves the design, supply, erection, testing and commissioning of traction substations and associated switching posts for a 2×25 kilovolt alternating current (AC) traction feeding system.
The project will be executed under the engineering, procurement and construction (EPC) mode.
Railway contract comes with a 24-month deadline
Ashoka Buildcon has 24 months from the commencement date to complete the project. The contract also requires a performance bank guarantee equivalent to 5% of the contract price and carries a defect liability period of two years, according to the filing.
Separately, on August 31, the company announced that it had received a letter of acceptance for work on the Rishikesh–Karnprayag new broad-gauge rail line project in Uttarakhand.
The contract covers the supply, erection, testing and commissioning of the electro-mechanical (E&M) systems for tunnels T-13, T-14, T-15 and T-16 under Package E-4. The scope includes 33/11 kilovolt and 11/0.433 kilovolt gas-insulated switchgear (GIS) substations, high-tension and low-tension cables, diesel generator sets, lighting, uninterruptible power supply (UPS) systems, ventilation and fire-fighting systems, along with associated works.
The Uttarakhand project is scheduled for completion within 30 months from the commencement date.
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Profit rises 45% as revenue declines
Ashoka Buildcon reported a 44.6% year-on-year increase in consolidated net profit to ₹217.3 crore in the first quarter of financial year 2025-26 (Q1FY26), compared with ₹150.3 crore in the corresponding quarter a year earlier.
Revenue from operations, however, fell 23.5% to ₹1,887 crore from ₹2,465 crore in Q1FY25, amid a slowdown in project execution and billing.
Earnings before interest, tax, depreciation and amortisation (EBITDA) remained unchanged at ₹599 crore. The EBITDA margin expanded to 31.7% from 24.3% in the year-ago quarter, supported by a change in project mix and cost efficiencies.
Ashoka Buildcon shares were trading at ₹102.19 on October 9, up 0.78% on the day.