Shares of HG Infra Engineering surged by more than 5% to Rs 1,532 in early trading on December 11 after the company announced it had secured a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH).

The contract involves the upgrade of a 63.84-km stretch of the newly-declared NH-227B, a segment of the 84 Kosi Parikrama Marg in Uttar Pradesh, a popular pilgrimage route.

The project is valued at Rs 763.11 crore, lower than the MoRTH’s estimated project cost of Rs 898.5 crore. HG Infra plans to complete the construction within two years.

The project, awarded under the hybrid annuity mode (HAM), will involve upgrading the road to two lanes with paved shoulders. The stretch to be developed spans from Design Km 160.200 to Km 224.040, labeled as Package VI.

HG Infra expressed its satisfaction with the award, noting in a regulatory filing that it had received the formal letter of acceptance from MoRTH.

This new project is the company’s second major order win in under a month, following a letter of award (LoA) received from NTPC Vidyut Vyapar Nigam in late November.

The latter contract, valued at approximately Rs 1,110 crore, involves the procurement and installation of 500 MW/1000 MWh of standalone battery energy storage systems (BESS) across India.

Despite these wins, HG Infra Engineering recently reported a 16% year-on-year decline in its net profit for the second quarter of FY25.

The company posted a net profit of Rs 80.7 crore for the quarter ended September 30, compared to Rs 96.1 crore in the same period last year.

Revenue from operations also fell by 5.5% year-on-year, dropping from Rs 954.5 crore in Q2 FY24 to Rs 902.4 crore in Q2 FY25.

However, the company’s operating performance remained resilient, with EBITDA seeing only a marginal decline of 0.3%, falling from Rs 220.1 crore to Rs 219.5 crore.

The EBITDA margin, however, improved to 24.3%, up from 23% in the same quarter last year.

By 9:20 am on December 11, HG Infra’s shares were trading at Rs 1,514, reflecting a 4.1% increase from the previous day’s close on the NSE.

The stock has seen a remarkable 72% rise since the beginning of 2024.