Afcons Infra slips 4% as client terminates project worth €113 million

Afcons Infra said it has received a termination notice from Societe Autoroutiere du Gabon (SAG) in relation to an EPC contract for National Road NR1 in Gabon

The share price of Afcons Infrastructure Ltd. fell by more than 4 per cent on Wednesday after a client terminated a road project contract worth Euro 113 million, while the company said it's pursuing legal remedies. 

 

The lender's stock fell as much as 4.3 per cent during the day to ₹294.5 per share, the biggest intraday fall since February 11 this year. The stock pared losses to trade 1.8 per cent lower at ₹302.2 apiece, compared to a 0.82 per cent advance in Nifty 50 as of 10:21 AM. 

 

Shares of the company fell for the 11th straight session and currently trade at 6.5 times the average 30-day trading volume, according to Bloomberg. The counter has risen 21.6 per cent this year, compared to a 2 per cent decline in the benchmark Nifty 50. Afcons Infra has a total market capitalisation of ₹11,134.68 crore. 

Afcons Infrastructure gets termination notice 

Afcons Infrastructure said it has received a termination notice from Societe Autoroutiere du Gabon (SAG) in relation to an engineering, procurement and construction (EPC) contract for National Road NR1 in Gabon.

 

The contract, valued at approximately Euro 113.03 million, involves the design, construction, rehabilitation and upgradation of a 117-km stretch from PK 24+000 to PK 105+000. The company had earlier informed the exchanges on January 31, 2026, of the client's bond invocation.

 

Afcons said around 93.47 per cent of the project had been completed as of December 31, 2025, and the road has been open to traffic for nearly two years. Certain remaining portions are pending due to delays in land handover.

 

The company believes the termination is inconsistent with contractual terms and applicable law, and said it is pursuing appropriate contractual and legal remedies. Afcons added that the dispute is project-specific and does not impact its overall order book, operational capability or business outlook. 

Afcons Infrastructure Q3 net profit falls 35%

Afcons Infrastructure reported a 34.77 per cent decline in net profit to ₹97.09 crore for the quarter ended December 2025, compared with ₹148.85 crore in the corresponding quarter last year. Revenue from operations fell 7.33 per cent to ₹2,975.77 crore during the quarter, as against ₹3,211.10 crore in the year-ago period.