Oval Projects Engineering Limited targets Rs 200 crore FY27 orders

Oval Projects Engineering Limited is targeting Rs 200 crore of order additions in FY27 over the next five months, supported by an approximately Rs 150 crore Agartala water-supply bid and ONGC opportunities. Management said the planned additions would take the order book to Rs 500 crore, although the bids remain subject to tender outcomes.

What is Oval Projects targeting for FY27 order additions?

Oval Projects is targeting Rs 200 crore of additions to its order book in FY27 over the next five months. Management described the target as its plan for the current financial year and said that adding Rs 200 crore would raise the order book to Rs 500 crore.

Management outlined a larger expansion sequence after FY27. It said it planned to add another Rs 500 crore in the following year and aimed to increase its portfolio by at least 30% year on year, but these are management targets rather than awarded orders.

The Rs 200 crore target is smaller than the contract range that management linked to a need for outside funding. Management said it would need to consider market funding for jobs above Rs 200 crore to Rs 300 crore, making capital availability and execution capacity relevant to its longer-term expansion plan.

Which bids are currently in Oval Projects' pipeline?

Oval Projects has submitted a bid of approximately Rs 150 crore for water-supply-improvement work in Agartala, Tripura. Director Sneha Banik identified the project as a current bid, while management separately referred to potential Asian Development Bank and World Bank projects in Tripura without assigning values or confirming awards.

Oval Projects has also bid for two Oil and Natural Gas Corporation, or ONGC, projects. One bid covers cathodic-protection systems and the other firefighting systems, with management locating the work in Gujarat and Andhra Pradesh, respectively; it did not disclose either project’s value or a tender decision date.

Beyond submitted bids, management said it was assessing two ONGC tenders with a combined value of about Rs 100 crore. It also referred to prospective compressed biogas, or CBG, projects from ONGC, which fit its stated work across upstream, midstream and downstream gas infrastructure.

Management identified additional pipeline possibilities that are not current awards. It said a second-phase IGDL pipeline tender could be floated next year after a first phase that Oval Projects is executing, and cited Rs 3,000 crore of investment associated with IGDL; it also mentioned an RTP pipeline spanning 500 kilometres across ONGC assets.

How does Oval Projects plan to fund larger contracts?

Oval Projects said it would look at structured debt and project funding if it pursued contracts above Rs 200 crore to Rs 300 crore. Management described project funding as capital that could be returned after project completion, rather than a permanent financing arrangement.

Management also proposed project-specific joint ventures as a route to execute larger work. Under that structure, a partner with funding capacity could participate in an individual project while Oval Projects handles execution; management said some current investors were ready to consider such participation, without disclosing committed amounts.

The company’s funding preference is shaped by management’s intention to retain ownership above 51%. Management said it did not want routine equity dilution and was therefore discussing structured debt, project funding and joint-venture options as it seeks to progress from the Rs 200 crore FY27 addition target toward its subsequent Rs 500 crore plan.

Which sectors could broaden Oval Projects' order pipeline?

Oval Projects is pursuing fertilizer and industrial work alongside oil and gas, with management noting that gas is a key raw material for fertilizer production. It said it was in advanced discussions with GFL, which management said is planning five new plants in Gujarat and Uttar Pradesh linked to lithium-ion battery expansion and electrolyser production.

Management also said it was speaking with Chatterjee International about oil-and-gas expansion in southern India. It highlighted BCPL’s Rs 11,000 crore fertilizer expansion in Assam as another sector opportunity, but disclosed no Oval Projects order from GFL, Chatterjee International or BCPL.

Storage is another area under discussion. Management referred to a methanol-storage plant of more than Rs 150 crore in Gujarat by Assam Petro-Chemicals Limited and said it was discussing the opportunity, while also expecting larger government storage allocations in the next budget following the Hormuz incident around six months earlier.

Management cited Rs 84,390 crore of government investment for Samudra Manthan-related deep-sea exploration activity and Rs 23,770 crore for biogas production. Those figures describe government outlays cited on the call, not Oval Projects contracts, and management did not specify what share of any future storage programme it could win.

Conclusion

Oval Projects has set a defined FY27 target of Rs 200 crore in fresh orders and identified a mix of water, ONGC, CBG, pipeline, fertilizer and storage opportunities. The approximately Rs 150 crore Agartala bid is the largest specifically valued submitted opportunity disclosed, while the two prospective ONGC tenders could add about Rs 100 crore if they proceed.

The next items to watch are tender outcomes for the Agartala and ONGC bids, the expected next-year tender for the second-phase IGDL pipeline, and management’s ability to arrange funding for contracts above Rs 200 crore to Rs 300 crore. Its stated plan to reach a Rs 500 crore order book in FY27 depends on those awards and financing arrangements.