Afcons Infra Shares Plunged 8% Over 2 Contract Termination 

Shares of Afcons Infrastructure Ltd. came under sharp selling pressure on Monday, 18 May, with the stock slipping nearly 8% during early trade after the company disclosed the cancellation of two overseas road construction tenders in Croatia. Investor sentiment also remained cautious ahead of the company’s fourth-quarter earnings announcement scheduled for later in the day.

In a regulatory filing dated 16 May, Afcons informed exchanges that Croatian Motorways Ltd. had withdrawn two previously awarded road infrastructure packages after determining that the company’s bid values exceeded the financial resources allocated for the projects. 

The contracts were linked to highway construction works in the Republic of Croatia, where Afcons had earlier emerged as the lowest bidder in July 2025.

Despite the setback, the Shapoorji Pallonji Group company recently secured a major breakthrough in Europe. Last week, Afcons announced that it had been selected as the most suitable bidder for a massive railway modernization project on Croatia’s Dugo Selo–Novska corridor. 

The project, valued at €677.07 million (around Rs 7,544 crore), marks the company’s entry into the European infrastructure market and stands as its largest international order to date.

The scope of the railway project includes reconstruction of the existing rail track, development of a second line, overhead electrification, signalling systems, and telecommunication infrastructure. The project is expected to strengthen Afcons’ global execution portfolio and expand its presence in high-value international transport infrastructure.

Over the last six months, Afcons has continued to build its order book aggressively. Earlier this month, the company also secured EPC and tunnelling contracts worth Rs 373 crore, according to its exchange disclosures.

Even after the recent correction, market participants remain focused on the company’s expanding international pipeline and execution capabilities. However, the cancellation of the Croatia road projects has raised concerns around order conversion and funding visibility in overseas markets.

At 11:59 am, the shares of Afcons Infra were trading 6.89% lower at Rs 313.30 on NSE.

The future of investing is here!
Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!

The post Afcons Infra Shares Plunged 8% Over 2 Contract Termination  appeared first on Equitypandit.