Desco Infratech Shares Rise on Securing ₹6.74 Cr Pipeline Order from Adani Total Gas

Synopsis: Desco Infratech Limited has received a significant new order worth Rs 6.74 crore from Adani Total Gas Limited (ATGL) for the execution of MDPE pipeline laying and Last Mile Connectivity (LMC) activities in Faridabad.

The order further strengthens the company’s presence in the city gas distribution (CGD) infrastructure segment. Desco’s engineers and technicians will install active gas hookups in Faridabad’s key industrial manufacturing hubs, commercial enterprises and residential households.

Desco Infratech Limited is currently trading at Rs 222.05 after yesterday’s closing price of Rs 215.55. The stock opened at Rs 217.05 and struck a day high of Rs 226.2; the day’s low so far is Rs 216. The current market capitalisation of the company is Rs 170 crore, with a price-to-earnings ratio of 10.4 times lower than the peer median industry ratio of 18.83 times.

Order Details

The company has received a domestic purchase order from Adani Total Gas Limited, one of the largest city gas distribution companies in India. The purchase order is Rs 67.42 million and is a steady addition to Desco Infratech’s active project backlog. The contract is about laying of Medium Density Polyethylene (MDPE) pipelines and execution of Last Mile Connectivity (LMC) works for domestic, commercial and industrial gas connections in Faridabad. 

MDPE pipelines are widely used in gas distribution systems in cities due to their durability, flexibility, and corrosion resistance, making them suitable for transporting natural gas safely to end consumers.

Partnering with Adani Total Gas ensures milestone payments and cash flow visibility. Desco Infratech prioritises infrastructure development in line with India’s clean energy transition goals. A domestic entity awarded the order, and no promoter or promoter group has any interest in the awarding company, the company said.

Financial Highlights

The company registered a strong year-on-year growth of 108.1 percent with revenue of Rs 77 crore in H2 FY26 against Rs 37 crore in H2 FY25. Moreover, revenue grew sequentially from Rs 42 crore in H1 FY26 to Rs 77 crore in H2 FY26, a healthy sequential growth of 83.3 percent.

Operating profit rose 87.5 percent YoY from Rs 8 crore in H2 FY25 to Rs 15 crore in H2 FY26. Operating margin fell from 23% to 19% from H2 FY25 to H2 FY26, indicating higher operating costs due to business expansion. Net profit grew 66.7 percent from Rs 6 crore in H2 FY25 to Rs 10 crore in H2 FY26, while EPS rose from Rs 7.57 to Rs 13.30.

Over the longer term, the company has delivered a 3-year sales CAGR of 60 percent and an impressive 3-year profit CAGR of 137 percent. In terms of profitability and financial strength, the company reported a ROCE of 30.2 percent and an ROE of 25.2 percent, reflecting efficient capital allocation. It also maintained a low debt-to-equity ratio of 0.20x, indicating a healthy balance sheet with prudent leverage.

Desco Infratech Limited is an infrastructure engineering company that engages in pipeline construction, city gas distribution infrastructure, utility projects, and engineering services. The company undertakes pipeline laying, gas connection works and other infrastructure development projects for clients in the public and private sectors.

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