Infra stock under ₹50 in focus after receiving termination notice from North Western Railway

SYNOPSIS: Vishnu Prakash R Punglia received a contract termination notice from North Western Railway for the Jaipur-Sawai Madhopur project, with Rs. 8.86 crore bank guarantees at risk; the company has moved court for relief.

Shares of one of India’s leading EPC companies with a diversified presence across water & municipal services, roads, railways, infrastructure, and mining, will be in focus on Friday’s trading session, after the company announced receiving a termination notice from North Western Railway.

During the previous trading session, shares of Vishnu Prakash R Punglia Limited closed in the red at 49.26 on BSE, down by 0.24 percent, as against its previous closing prices of Rs. 49.38, with a market cap of Rs. 614 crores. The stock has delivered negative returns of over 80 percent in the last one year, and has fallen by around 36 percent in the last one month.

What’s the News:

As per the latest exchange filings, Vishnu Prakash R Punglia Limited has received a termination Notice from North Western Railway concerning a contract awarded for works related to the Jaipur-Sawai Madhopur Doubling Project.

The terminated contract covered a broad scope of civil, structural, and railway infrastructure works between Jaipur and Chaksu stations (Km 131.27 to Km 87.6). These included earthwork in cutting/filling, blanketing, construction of station buildings, passenger/goods platforms, platform shelters, foot over bridges, passenger amenities, signalling and telecom (S&T) structures, staff quarters, minor bridges, retaining and toe walls, pitching works, limited height subways (LHS), road under bridges (RUBs), and other associated ancillary works.

According to the communication received, the railway authority has formally rescinded the contract, and the remaining scope of work will now be executed independently, without the involvement of VPRPL.

The termination notice also proposes financial implications for the company, including the forfeiture of its performance guarantee and security deposit, through encashment of bank guarantees aggregating to Rs. 8.86 crore.

In response, VPRPL has initiated legal action by filing a writ petition along with a stay application before the Rajasthan High Court at Jodhpur on 14th January 2026. The company has requested quashing of the contract rescission order and a directive refraining the railway department from encashing the bank guarantee.

Financials & More:

VPRPL reported a decline in revenue from operations, experiencing a year-on-year decrease of around 12 percent, from Rs. 334.87 crores in Q2 FY25 to Rs. 295.69 crores in Q2 FY26. Likewise, its net profit decreased during the same period from Rs. 23.73 crores to Rs. 3.65 crores, representing a decline of nearly 85 percent YoY.

As of September 2025, the company’s total order book stood at ~Rs. 5,001 crores, over 8x its current market capitalisation. Segment-wise, the order book is primarily dominated by the Water Supply Projects (WSP) segment, which accounts for 57 percent of the total outstanding orders. This is followed by the Railway segment, contributing 33 percent, while the Road and Civil segment represents the remaining 10 percent of the order book.

Vishnu Prakash R. Punglia Limited is an integrated Engineering, Procurement and Construction (EPC) company engaged in the execution of infrastructure projects across water supply, railways, roads, and irrigation networks.

The company focuses exclusively on EPC contracts in roads and highways, with or without operations and maintenance, while avoiding HAM and BOT models to ensure prudent debt management and stable cash flows, and remains aligned with national infrastructure initiatives such as Jal Jeevan Mission and AMRUT.

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