Shares of Patel Engineering declined by 3.5 percent on Tuesday, February 18, despite the company securing a significant irrigation project worth ₹1,090.45 crore. The company, in a joint venture, emerged as the lowest bidder (L1) for the project, which has been awarded by the Maharashtra Krishna Valley Development Corporation. Patel Engineering’s share in the contract stands at ₹218.09 crore.
Project Details
The irrigation project is located in Kalaj village, Phaltan Taluka, Satara district, Maharashtra, and is expected to be completed within 36 months. Patel Engineering will execute the project as part of a joint venture, holding a 20 percent share.
The scope of work includes the construction of a Pipe Distribution Network, involving excavation, refilling, installation of structures, supply, jointing, lowering, and laying of pipes, along with various valves, chambers, and outlets. Additionally, the project includes pipeline testing and an operations, repairs, and maintenance period of five years post-completion.
Financial Performance
Patel Engineering reported a 14.49 percent rise in consolidated net profit, reaching ₹80.24 crore for the quarter ended December 2024. The profit growth was supported by higher income, compared to a net profit of ₹70.24 crore in the same period a year ago.
Total income surged to ₹1,265 crore from ₹1,076 crore a year earlier, while expenses stood at ₹1,125 crore, up from ₹1,030.94 crore in the third quarter of the previous fiscal year.
“Looking ahead, we are enthusiastic about enhancing our operational capabilities, expanding our project portfolio, and driving innovation within our industry. The robust foundation we have built over the years fills us with confidence and optimism as we embark on the next phase of growth, consistently delivering outstanding value to our stakeholders,” said Managing Director Kavita Shirvaikar.
As of December 31, 2024, the company’s order book stood at ₹16,396.4 crore.
Stock Performance
Despite securing the contract, Patel Engineering’s stock declined by as much as 3.5 percent to its intraday low of ₹42.92. The stock is now approximately 43 percent below its 52-week high of ₹74.99, recorded in February 2024, while hovering just a percent above its 52-week low of ₹42.51, hit last week on February 12, 2025.
Over the past year, Patel Engineering shares have lost 36 percent of their value. In February alone, the stock is down 13 percent following a 4.5 percent decline in January and a 2.3 percent drop in December.
Mumbai-based Patel Engineering is a leading engineering, procurement, and construction (EPC) firm, specializing in tunnels and underground works for hydroelectric and dam projects. The company’s expertise in infrastructure development continues to drive its strategic expansion and project acquisitions.
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