Garuda Construction & Engineering has entered into a Memorandum of Understanding (MoU) for the construction of a landmark tower in Jeddah, Saudi Arabia. The deal carries an estimated revenue potential of ₹1,800 crore for its wholly owned subsidiary, Dream City Builders.

The agreement was signed with Almasarat Company Limited on September 7, 2026. Dream City Builders, formerly known as Garuda Arabia, will undertake the complete Engineering, Procurement and Construction (EPC) scope. This includes construction, finishing and handover of the project, which is expected to span approximately five years from commencement.

Project Details

The proposed development is envisioned as a distinctive 360-degree twisting tower featuring panoramic sea views. The structure will stand at 93 storeys across a project area of approximately 1,53,451 sq. metres.

Key features of the development include:

• A five-star hotel comprising approximately 350 rooms across the lower 14 floors
• A diamond-shaped rooftop restaurant located on the 93rd floor

The arrangement is subject to requisite approvals and the official commencement of the project. The company disclosed this development pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Garuda Construction & Engineering will hold its 16th Annual General Meeting on September 30, 2026, at 11:00 am through Video Conferencing or Other Audio Visual Means. Shareholders will approve significant corporate governance matters, including related party transactions valued at up to ₹530 crore.

The meeting agenda includes the adoption of financial statements for FY26 and the re-appointment of Mr. Rohit Ramanand Pareek as Whole Time Director and Chief Financial Officer. Remote e-voting opens on September 27, 2026, at 9:00 am and closes on September 29, 2026, at 5:00 pm. The cut-off date for shareholding eligibility is September 23, 2026.

Key Agenda Items

Related Party Transactions

The Board seeks authorization for agreements with entities where Key Managerial Personnel exercise influential control, valid from April 1, 2027, to March 31, 2028. These transactions aim to ensure stability in supplies and project-related assignments.

Appointment of Secretarial Auditors

The company proposes appointing M/s Ketan Vyas & Company as Secretarial Auditors for five years starting FY27. The proposed remuneration is ₹60,000 plus applicable taxes for the first year.

Financial Performance FY26

Garuda Construction reported strong growth in FY26, with revenue from operations rising to ₹53,071.52 lakh from ₹22,503.01 lakh in FY25. Net profit surged to ₹12,254.11 lakh, compared to ₹4,980.48 lakh in the previous year.

What the Numbers Show

The proposed related party transactions reveal a significant concentration of future operational exposure with entities linked to Key Managerial Personnel. With ₹430 crore allocated for sales and purchase of goods against just ₹100 crore for working capital investment, the majority of the approved value supports immediate trading activities rather than long-term equity stakes in these associated enterprises.