Afcons Infrastructure Ltd – ₹31,747 Cr Order Book, Bridges, and a 53% Promoter Pledge 🤦♂️🏗️
1. At a Glance
Afcons is the Shapoorji Pallonji Group’s construction arm, famous for building tunnels, metros, dams, and bridges that politicians love to cut ribbons on. They built the Atal Tunnel, Chenab Bridge, Samruddhi Mahamarg chunks, and even metro systems that Delhiites still crib about. With ₹31,747 Cr worth of orders, 65 active projects across 12 countries, and global rankings in marine and bridges, Afcons is basically the Ranveer Singh of infra — everywhere, energetic, but occasionally overdressed (read: promoter pledge 53%).
2. Introduction
Founded in 1959, when Nehru was still wearing rose brooches, Afcons started small but now struts on the global EPC stage. It is the 10th largest marine contractor worldwide and ranked among the top 50 contractors globally across multiple categories.
It operates across five verticals: marine, transport, urban infra, hydro projects, and oil & gas. Nearly half of its revenue (48%) comes from urban projects — metros, bridges, flyovers — basically the stuff that makes city commuting slightly less hellish. Another 28% comes from hydro tunnels and dams — aka future memes when rivers don’t cooperate.
Afcons’ international swagger includes projects in Ghana, Zambia, Kuwait, Maldives, and more. Their recent ₹6,800 Cr contract in Croatia shows they’re not shy of Europe either.
But here’s the twist: despite mega projects, the company has grown sales only 4–5% CAGR over five years. Why? Because infra is less about building, more about chasing payments from governments who treat invoices like New Year resolutions.
Question: Would you trust an infra company with 53% promoter pledge, or is this just “collateral damage” in the SP Group legacy?
3. Business Model – WTF Do They Even Do?
Afcons’ business is simple: take government contracts, mobilise armies of workers, fight litigation, and deliver something iconic 3 years late but still celebrated as an engineering marvel.
Urban Infra (48%) – Metros in Kolkata and Delhi, bridges like MG Setu, and elevated corridors. This is their bread, butter, and cutting-chai.
Hydro & Underground (28%) – Dams and tunnels like Atal Tunnel. Big budgets, big risks, but also big publicity.
Surface Transport (10%) – Highways and rail projects including the Mumbai–Ahmedabad bullet train package.
Marine & Industrial (9%) – Jetties, LNG tanks, ports. Global ranking makes them a force in this niche.
Oil & Gas (6%) – EPC contracts for Reliance and others.
They rely heavily on government orders (70%), with multilateral agencies (20%) like World Bank and a small private sector (10%). Basically, babus and netas decide Afcons’ fate, while global agencies provide foreign exposure.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹3,370 Cr
₹3,154 Cr
₹3,223 Cr
+6.9%
+4.6%
EBITDA
₹435 Cr
₹353 Cr
₹294 Cr
+23.2%
+48.0%
PAT
₹137 Cr
₹92 Cr
₹111 Cr
+49.0%
+23.4%
EPS (₹)
3.74
2.69
3.02
+39.0%
+23.8%
Commentary: Healthy profit growth thanks to better execution and cost control. Margins are climbing slowly like an Indian commuter on an escalator that’s not working.
5. Valuation – Fair Value Range Only
P/E Method: EPS TTM = ₹14.8. Industry P/E ≈ 25–35. Fair Value Range = ₹370 – ₹520.
EV/EBITDA: EV = ₹17,718 Cr. EBITDA TTM ≈ ₹1,438 Cr. EV/EBITDA = 12.3x. Industry multiple 10–14x. Fair Value Range = ₹400 – ₹550.
Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
IPO 2024: Raised ₹5,430 Cr, including ₹1,250 Cr fresh issue for capex, working capital, and debt repayment. Investors queued up because infra + Modi 3.0 vibes = instant hype.
New Orders: ₹6,800 Cr Croatian railway + ₹4,500 Cr Croatian road contracts. Yes, Afcons is exporting Indian jugaad to Europe.
Leadership Drama: Shapoorji Mistry stepped down; Krishnamurthy Subramanian became Executive Chairman, Pallon S. Mistry joined
