Afcons Infrastructure shares tumble 4% after client terminates contract worth €113 million

Shares of Afcons Infrastructures slipped as much as 4.2% to their day's low of Rs 295 on the BSE on Wednesday after the company said Société Autoroutière du Gabon (SAG) has issued a termination notice for its contract worth around €113.03 million.

The company informed the stock exchanges on Tuesday that the engineering, procurement and construction contract was from a private client for the design, construction, rehabilitation and upgradation of a stretch of approximately 117 km of National Road NR1.

Major portions of the project have been completed (roughly 93.47% as on December 31, 2025), and only certain balance portions are awaiting land handover. “The company believes that the termination by the client is inconsistent with the contractual terms and applicable law. The company continues to pursue its contractual and legal remedies,” it said in a regulatory filing.


The dispute is project specific and does not impact Afcons Infrastructure’s overall order book, operational capability or business outlook. The termination is not expected to have any material adverse impact on the company’s ongoing operations or execution of other projects, it added.

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Afcons Infra Q3 snapshot

Afcons Infrastructure reported a net profit of Rs 97 crore for Q3FY26, down 34.8% from Rs 148.8 crore a year earlier. Revenue for the quarter declined 7.3% year on year to Rs 2,975 crore, compared with Rs 3,211 crore in the corresponding period last year.

Operating performance, however, remained resilient. EBITDA rose 12.3% year on year to Rs 409.5 crore from Rs 364.6 crore, while EBITDA margin expanded to 13.8% from 11.4% a year ago, supported by improved cost management.

For the nine months ended December 2025, Afcons reported total income of Rs 9,545 crore. EBITDA for the period grew 1.8% year on year to Rs 1,269 crore, excluding a one time labour code impact of around Rs 77 crore, with margins improving to 13.3%. Profit after tax for the nine month period stood at Rs 339 crore.

The company’s order book remained strong at Rs 31,543 crore as of December 2025, translating into a book to bill ratio of 2.5 times and providing revenue visibility for the coming years. Order inflows during 9MFY26 stood at Rs 2,640 crore.

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