Afcons Infrastructure wins ₹6,800cr Croatia rail bid

Big overseas rail win puts Afcons in focus

Afcons Infrastructure Ltd, the Shapoorji Pallonji group’s flagship engineering and construction company, has emerged as the lowest bidder (L1) for a major railway project in the Republic of Croatia. The development is significant because it adds a large overseas job to the company’s pending execution pipeline and keeps investor attention on its order inflows.

The project relates to the Dugo Selo–Novska railway route and carries an estimated contract value of about ₹6,800 crore. Afcons has also reported fresh domestic order additions, including a civil and infrastructure order worth ₹576 crore (including GST), alongside a separate letter of commitment worth ₹175 crore from Reliance Industries.

What the company disclosed to exchanges

In an exchange filing cited in the reports, Afcons said it has been declared L1 by HŽ Infrastruktura d.o.o. (HŽ Infrastructure Ltd). The bid is for reconstruction and construction works on the Dugo Selo–Novska railway corridor.

The company’s disclosure also outlined that the project includes multiple railway systems and allied works beyond track construction. The timeline shared for completion is 72 months from the commencement date after the award.

While being declared L1 typically indicates the lowest financial bid, the final award process and subsequent commencement depend on the counterparty’s contracting steps, as per standard tendering practices.

Croatia project scope: track, electrification, signalling

The Croatia order covers reconstruction of the existing railway line and construction of a new second railway track along the Dugo Selo–Novska route. The scope also includes overhead electrification.

In addition, the project includes signalling and telecommunication works, making it a broader railway systems package rather than a single civil-only contract. Such scope can influence execution planning because different workstreams must be coordinated across civil, electrical, and signalling disciplines.

The estimated contract value mentioned in the reports is €677,071,899.78 (approximately ₹6,800 crore), excluding VAT.

Contract format and execution timeline

Afcons said the work will be executed on a BOQ (bill of quantities) or item-rate basis. Under this format, billing is linked to quantities executed for specified items rather than a single lump-sum consideration.

The scheduled completion period is 72 months from the commencement date after the award. A six-year window suggests a multi-year revenue contribution profile rather than a single-year spike.

The project’s size and tenure also imply that working capital management and sequencing of milestones could matter for how quickly the order translates into reported revenue and cash flows, though the reports did not provide any detailed phasing.

Order book update: ₹35,311 crore cited

One report said Afcons’ order book has reached ₹35,311 crore following recent wins. The same context highlighted that the company recently secured a fresh civil and infrastructure order worth ₹576 crore (including GST), described as part of its regular business and involving railways and related infrastructure works.

Separately, another excerpt cited an order book figure of ₹36,869 crore as of March 2025, calling it the highest ever and roughly 2.9x TTM turnover. Since the inputs provide both figures from different contexts, readers should note that order book totals can vary by reference date and inclusion criteria.

Other recent orders mentioned in the reports

Beyond the Croatia rail L1 outcome, the reports also referenced a letter of commitment for a civil and structural contract worth ₹175 crore from Reliance Industries. The work is for Jamnagar, Gujarat, and the final value is expected to depend on actual work executed, as per the contract terms.

Another excerpt stated the company won two road construction contracts in Croatia worth ₹4,535 crore. No further scope detail was provided in the supplied text, but the mention indicates additional exposure to Croatia-linked infrastructure work.

Share price reaction and market context

Afcons Infrastructure shares reacted positively after the Croatia L1 announcement. One report said the stock rallied 3.7% to an intraday high of ₹434.45 on the BSE.

Another update said that around 3:14 PM, the stock was trading 2.29% higher at ₹428.40 versus a previous close of ₹418.80 on the NSE. A separate data point said the stock ended 0.36% higher at ₹418.70.

The same set of reports also noted the stock’s broader trend: it has declined 17% over the past six months and is down 22% year-to-date. Another line said the stock is about 25% above its 52-week low.

Analyst target and rating references

According to Trendlyne, the average target price for Afcons Infrastructure was cited at ₹543, implying nearly 30% upside from the then current levels referenced in the report. Another excerpt described analysts maintaining a ‘Strong Buy’ rating with a target price of ₹543.

These references indicate that, at least within the cited commentary, the market is weighing a large international order pipeline against recent price weakness.

Credit rating withdrawal request mentioned

One report noted Afcons is in the process of withdrawing its credit ratings for bank facilities from ICRA Limited. The provided text did not specify the reason, the facilities involved, or the timeline, but the mention is notable because rating actions and disclosures can be monitored by lenders and market participants.

Key facts at a glance

What investors may track next

From here, the next milestones are tied to the contracting process after an L1 declaration, and the formal start date that triggers the 72-month execution clock. Investors may also watch how the company reports order book reconciliation across periods, given multiple figures cited across the provided sources.

Another near-term monitorable item is any further disclosures around the reported ICRA rating withdrawal request for bank facilities. Separately, updates on execution progress for the ₹576 crore domestic order and the ₹175 crore Jamnagar commitment can add clarity on the pace of incremental order-to-revenue conversion.

Conclusion

Afcons Infrastructure’s L1 position for the ₹6,800 crore Croatia railway project is a major international addition, alongside fresh domestic ordering and an order book reported at ₹35,311 crore. The stock saw an immediate positive reaction, even as broader six-month and YTD performance remained weak in the cited data. The next confirmed signals will likely come through final award steps, commencement timelines, and subsequent exchange filings on project progress and order book movement.