20% Upper Circuit: Infra Stock Skyrockets Despite NIFTY 50 and Sensex Falling Over 1%

Synopsis: The Infra stock surged nearly 20% after strong Q3 results, even as NIFTY 50 and BSE Sensex fell over 1%. Revenue jumped 51 percent QoQ, with EBITDA and profit turning positive.

A penny-cap company, primarily engaged in the business of infrastructure projects on a contract basis, has come into the spotlight following the announcement of its Q3 financial results, attracting attention from investors and market watchers.

With a market capitalization of Rs. 57.17 crore, the shares of Modern Engineering and Projects Limited were trading at Rs. 37, up by 11.28 percent from its previous day’s closing price of Rs. 33.25 per equity share. The stock has touched an intraday high of Rs. 39.70 implying an upside of  19.5 percent from previous day’s close price.

Market Fall Snapshot

Indian equity benchmarks declined sharply on February 13, 2026, amid weak global cues and heavy selling in IT stocks. The NIFTY 50 slipped below the 25,600 marking an intraday low around 25,499, down 308 points or 1.19 percent, while the BSE Sensex fell over 966 points to 82,709, a decline of about 1.15 percent. 

Why Is the Market Down?

The decline was primarily driven by a sharp selloff in IT stocks following a nearly 10 percent overnight fall in the American depositary receipts of Infosys and Wipro, alongside concerns over AI-led disruption after new developments from US-based AI firm Anthropic. 

Weak global cues added to pressure, as US markets, including the Nasdaq Composite and S&P 500, fell sharply amid technology stock weakness and inflation concerns. Additional headwinds included a stronger US dollar, a weaker rupee, negative technical indicators for Nifty, and lingering geopolitical tensions in the Middle East, all of which dampened investor sentiment.

Why is this Stock up?

The stock is trading higher primarily due to strong Q3 results, which boosted investor confidence. Improved revenue growth, better margins, and healthy profit performance signaled operational strength, leading to positive sentiment and increased buying interest in the counter.

The company reported revenue of Rs. 24.80 crore in Q3FY26, registering a 9.3 percent YoY growth compared to Rs. 22.68 crore in Q3FY25. On a sequential basis, revenue surged 51.0 percent QoQ from Rs. 16.42 crore in Q2FY26, reflecting a strong rebound in topline performance.

EBITDA stood at Rs. 4.52 crore in Q3FY26, compared to a loss of Rs. 3.37 crore in Q3FY25, indicating a sharp turnaround on a YoY basis. Sequentially, EBITDA increased 34.1 percent QoQ from Rs. 3.37 crore in Q2FY26, highlighting improved operating efficiency during the quarter.

Net profit came in at Rs. 3.37 crore in Q3FY26, reversing from a loss of Rs. 3.61 crore in Q3FY25, marking a significant YoY recovery. On a QoQ basis, profit rose 14.6 percent from Rs. 2.94 crore in Q2FY26, demonstrating continued strengthening in bottom-line performance.

About The Company

Modern Engineering and Projects Limited is an India-based company engaged in the construction and execution of infrastructure development projects. It undertakes contracts across segments such as transportation engineering, civil construction, and other related infrastructure works. The company, originally incorporated in 1946 as Modern Converters Limited, is headquartered in Mumbai, India.

A return on equity (ROE) of about 25.9 percent, a return on capital employed (ROCE) of about 20.5 percent and debt to equity ratio at 0.12 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 3.31x lower as compared to its industry P/E 17x.  

Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 337 percent, a profit CAGR of 118 percent whereas a share price CAGR of 54 percent, reflecting operational performance and share price performance.

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