Dilip Buildcon shares surge 6% after securing ₹2,631 crore BSNL Contract

Shares of Dilip Buildcon rallied nearly 6 percent on Thursday, March 27, after the company announced that its joint venture (JV) had bagged a ₹2,631.14 crore contract from Bharat Sanchar Nigam Ltd (BSNL) for the BharatNet Phase-III project. The deal aims to bolster broadband connectivity in Jammu & Kashmir and Ladakh, marking a major win for the infrastructure firm.

Contract Details and Scope

In a regulatory filing, Dilip Buildcon stated that its DBL-STL Consortium had received an Advance Work Order (AWO) from BSNL for the "Design, Supply, Construction, Installation, Upgradation, Operation, and Maintenance" of the middle-mile network under BharatNet Phase-III. The contract, awarded under the Design, Build, Operate, and Maintain (DBOM) model, involves a three-year construction period followed by a 10-year maintenance commitment.

The project is part of the government's broader initiative to strengthen digital infrastructure in rural and remote areas. It is funded by the Universal Service Obligation Fund (USOF), which focuses on expanding connectivity to underserved regions.

Dilip Buildcon will be responsible for executing 70.23 percent of the contract, underscoring its growing presence in the infrastructure and telecom sector. The deal highlights DBL's ability to secure large-scale, government-backed projects, enhancing its credibility and expanding its portfolio.

The BharatNet initiative is expected to play a pivotal role in driving digital transformation in Jammu & Kashmir and Ladakh by providing high-speed internet access to previously underserved areas. The improved connectivity will benefit local businesses, educational institutions, and government services, fostering overall economic development in the region.

Stock Price Performance

Following the contract announcement, Dilip Buildcon's stock surged 5.8 percent to touch its intraday high of ₹481.20 on Thursday. Despite the rally, the stock remains 18 percent below its 52-week high of ₹588.40, recorded in August 2024.

On the upside, the stock has climbed 41 percent from its 52-week low of ₹341.65, hit in June last year. Over the past year, the stock has gained 10 percent, with a notable 15.6 percent rise in March so far, reversing a six-month losing streak.

Dilip Buildcon's latest contract win with BSNL for the BharatNet Phase-III project underscores its expanding role in India’s digital infrastructure space. The ₹2,631 crore deal will not only strengthen its telecom portfolio but also contribute to the government’s mission of enhancing digital access in rural and remote regions.

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