Infra stock falls 6% after NHAI suspends company from participating in ongoing or future bids

Synopsis:
The shares of this construction company crashed 6 per cent after the management in its announcement said that NHAI has suspended this company from participating in its ongoing and future bids for one month. 

The company, which is engaged in the business of construction and infrastructure facilities on an EPC and BOT basis and is also involved in the sale of ready mix and making switchgear concrete, had its shares in the news today as the company announced its suspension from participating in bids imposed by NHAI due to a fatal incident. 

With the market cap of Rs 5,015 Crore, the shares of Ashoka Buildcon Ltd reached a low of Rs 172.90 compared to its previous day close of Rs 184.10, which is a fall of about 6 per cent in today’s intraday session. The shares are trading at a PE of 3.29, whereas its industry PE is 19.2. 

About the Suspension

Ashoka Buildcon has been temporarily barred by NHAI from participating in ongoing and future tenders after a serious incident on the NH-66 elevated corridor project. Two precast PSC girders collapsed during construction, and one of them fell onto a moving commercial vehicle, resulting in the driver’s death. Following this, NHAI issued a Show Cause Notice on November 26, 2025, and imposed a one-month suspension or until an Expert Committee completes its investigation.

NHAI’s primary allegation is that public safety was endangered, which triggered the regulatory action. However, Ashoka Buildcon has firmly denied any negligence, stating that the collapse was caused by a sudden and unpredictable failure of a hydraulic jack due to internal seal damage. The company also pointed out that the vehicle involved had forcibly entered a restricted construction zone and that all required safety protocols, good industrial practices, and contractual safety measures were in place at the site.

While the suspension affects the company’s ability to bid for NHAI projects in the short term, Ashoka Buildcon has clarified that all other business operations remain unaffected. The company is still assessing the financial impact and will update exchanges accordingly. For now, the focus shifts to the Expert Committee’s findings, which will determine whether this restriction is lifted or extended and whether any further corrective actions are required.

About the company and others

Ashoka Buildcon Limited began in 1976 and grew into one of India’s most respected highway developers, even earning a place in the Fortune India 500. As an integrated EPC, BOT, and HAM player, Ashoka has repeatedly shown the ability to take on challenges that others might consider beyond reach, which is why its portfolio now spans some of the most complex and high-impact infrastructure projects in India and even overseas. Backed by a strong pool of engineers, technical talent, and support teams, the company has the confidence and capability to deliver projects of any scale. 

Ashoka Buildcon’s order book paints the picture of a company still powered by its biggest strength which is roads. Road EPC makes up 45.8% of its projects, and Road HAM adds another 12.3%, showing that highways remain the backbone of its business. But the portfolio also hints at a quiet transformation. A solid 31% now comes from Power T&D, while Railways contributes 7.8% and Building EPC adds 3.1%, signalling that the company is steadily branching into new areas. Put together, the mix shows a business that’s rooted in its legacy but evolving into something broader, stronger, and more future-ready.

Ashoka Buildcon’s client list reads quite well, with national agencies like NHAI, NHIDCL, Rail Vikas Nigam, and Ircon to major state bodies such as MMRDA, MSRDC, MAHATRANSCO, KSHIP, MPRDC, and UPEDA. The company works with institutions that shape the country’s roads, railways, and power networks. Altogether, this diverse mix shows how deeply the company is embedded in India’s development story and how consistently it has earned the confidence of organisations that demand both scale and precision.

Written by Leon Mendonca

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