SRM Contractors Soars 12% on ₹168 Cr Dual Infra Contract Wins

Synopsis: After securing two significant infrastructure projects totaling Rs.168 crore, SRM Contractors Limited has strengthened its order book visibility. The contracts involve critical landslide remedial works in Himachal Pradesh and road construction in Maharashtra, marking a steady expansion of its geographic footprint.

Shares of a leading infrastructure construction company came into focus after announcing the receipt of multiple domestic contracts. The company witnessed increased buying interest following the disclosure of project wins from the National Highways Authority of India (NHAI) and the Public Works Department (PWD) of Maharashtra. This development triggered a positive move in the stock price during Wednesday’s trading session.

With a market capitalisation of Rs. 1,188.62 crore, the shares of SRM Contractors Limited were trading at Rs. 524.6 per share, up 4.89 percent from its previous closing price of Rs. 500.15 apiece. The stock touched an intraday high of as much as 12.74 percent, taking the stock price upto Rs.563.85  It is trading at a P/E of 14.17.

New Project Allotment Update

The company received two separate work orders with a combined value of Rs.168 crore. The larger contract, valued at Rs.128 crore, was awarded by the National Highways Authority of India for landslide remedial measures on the Pandoh to Kullu section of NH-03 in Himachal Pradesh. This project is structured under the Engineering, Procurement, and Construction (EPC) mode and requires completion within 12 months. Such remedial projects often carry higher technical complexity compared to standard road works, potentially offering better margin profiles.

The second contract, worth Rs.40 crore, involves the construction of road configurations, minor bridges, and culverts in forest stretches on the Nandgaon Peth-Morshi Warud road in Maharashtra. Awarded by the PWD Maharashtra, this project has an execution timeline of 18 months. The simultaneous win across two different states indicates a diversification of the client base beyond the company’s traditional stronghold in the Jammu and Kashmir region.

Business Overview

Incorporated in 2008, SRM Contractors Limited specializes in the construction of roads, bridges, and tunnels, primarily operating as an EPC contractor. The company was listed on the exchanges in early 2024 and has since focused on scaling its order book in the hilly terrains of Northern India. For Q3FY26, the company reported a revenue of Rs. 231 crore and a profit after tax (PAT) of Rs. 24 crore, reflecting a year-on-year growth in its operational scale.

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