Afcons Infrastructure Croatia L1 wins: ₹11,335 crore

What Afcons won in Croatia

Afcons Infrastructure Limited, part of the Shapoorji Pallonji group, has been declared the lowest bidder (L1) for multiple transport infrastructure packages in Croatia. The developments span two road construction packages on the A1 Motorway corridor in southern Croatia and a large railway reconstruction and second-track project on the Dugo Selo–Novska section. Together, the L1 positions cover contract values adding up to about ₹11,335 crore based on figures disclosed by the company and reported in public updates.

The road packages were issued by Croatian Motorways Ltd and sit in the Metković–Dubrovnik sector of the A1 Motorway, a strategic route connecting major Croatian cities such as Zagreb, Split, and Dubrovnik. Separately, the railway package was issued by HŽ Infrastruktura d.o.o. (HŽ Infrastructure Ltd) and involves reconstruction, rehabilitation, and construction of a second track, along with systems work.

Two A1 Motorway packages: scope and timelines

Afcons emerged as L1 for two highway-building projects in southern Croatia under Croatian Motorways Ltd. The first contract, Package J324/23, involves building a 9-kilometre stretch between Rudine and Slano. The second, Package J325/23, covers 11.5 kilometres between Slano and Puo Mravinjac.

Both road projects are structured on a BOQ or item-rate basis. The expected completion period for each package is 42 months. The packages form part of a larger transportation corridor intended to improve connectivity in southern Croatia, particularly along the Metković–Dubrovnik sector.

Road project values disclosed in the tender

The reported estimated value for Package J324/23 is about ₹2,398 crore, and the value for Package J325/23 is about ₹2,137.44 crore. Combined, the two road packages total over ₹4,535 crore. Afcons’ bids were also reported at €240.5 million and €214.4 million respectively for the two highway packages.

The article notes that Afcons faced competition from China Road and Bridge Corporation in these highway projects. While being declared L1 is a key step, award formalities and contract execution typically follow the tender evaluation process.

The rail project: Dugo Selo–Novska second track

In a separate exchange filing, Afcons said it has been declared L1 by HŽ Infrastruktura d.o.o. for a major railway line project in Croatia. The work includes reconstruction of the existing track and construction of a second railway track on the Dugo Selo–Novska route. The scope also covers overhead electrification, signalling, and telecommunication works.

The railway project is to be executed on a BOQ or item-rate basis. The completion period for the rail contract is 72 months from the commencement date post-award, as disclosed.

Rail contract value and the exchange-rate basis

The estimated value of the rail contract, excluding VAT, was disclosed at €677,071,899.78, which was reported as approximately ₹6,800 crore. The company also cited an exchange rate of €1 = ₹100.44 to arrive at the rupee value.

The wider tender environment in Croatia was also highlighted. Afcons had submitted bids for state railway and road-building projects worth €1.1 billion in total, and it submitted the lowest bid in a railway reconstruction tender estimated at €620 million. The rail plan was described as one of the biggest in Croatia’s modern history, with financing partly from EU funds.

Why Croatia is drawing Indian infrastructure interest

The updates also come amid growing attention to Croatia from Indian companies, with Prime Minister Narendra Modi’s visit to Zagreb cited as a catalyst for interest in large infrastructure opportunities. For contractors like Afcons, Europe adds a new geography to a portfolio that already includes complex civil engineering work across sectors.

Afcons’ stated capabilities span marine works, highways, bridges, metro works, power houses, tunnels, oil and gas, LNG tanks, and other civil engineering projects in India and international markets including Africa and the Middle East. Against that backdrop, a cluster of large Croatia awards can deepen its pipeline outside India.

Market reaction and stock performance mentioned

Following the announcement around the Croatia rail project, Afcons’ shares rose 3.7% to ₹434.45. On another trading update mentioned, the stock ended 0.36% higher at ₹418.70 (also reported as ₹418.75 in a separate line) compared with a previous close of ₹417.25 on the BSE.

The same coverage noted that the stock has declined 17% over the past six months and is down 22% year-to-date. Trendlyne data cited an average target price of ₹543 from seven analysts, indicating nearly 30% upside from the referenced levels, with most of those analysts carrying a ‘Strong Buy’ rating.

Order book context and other recent work

Afcons’ order book was reported at ₹36,869 crore as of March 2025, described as the highest ever and about 2.9x TTM turnover. One line also referenced that this ₹36,869 crore figure was excluding L1 orders worth ₹10,662 crore.

Separately, Afcons had earlier reported receiving a letter of commitment for a civil and structural contract worth ₹175 crore from Reliance Industries for work at Jamnagar, Gujarat. The final value of that work would depend on actual execution, as per contract terms.

Key figures at a glance

Analysis: what these L1 positions mean

The immediate significance is scale. The two road packages total over ₹4,535 crore and the rail L1 is about ₹6,800 crore, creating a large Europe-linked opportunity set for Afcons in a short span. The road packages also sit on a marquee corridor - the A1 Motorway - which can serve as a reference for future bids in the region.

The rail contract is operationally broader than plain civil works because it includes electrification, signalling, and telecommunication elements. That typically implies multi-discipline coordination and longer execution timelines, reflected in the 72-month schedule. From a reporting standpoint, investors will likely track conversion from L1 status to a final award, and later, execution milestones and working-capital intensity as the projects move forward.

Conclusion

Afcons Infrastructure’s L1 positions in Croatia cover two A1 Motorway road packages worth over ₹4,535 crore and a rail upgrade valued at about ₹6,800 crore, strengthening its international pipeline. The next concrete trigger is the formal award and commencement timelines under the respective tender processes, including the start date that activates the 42-month and 72-month schedules.