RPP Infra Projects Limited has secured a major infrastructure contract worth Rs 52,17,05,486 from the Water Resources Department of Tamil Nadu. The project involves comprehensive flood mitigation works for the establishment of Global Sports City at Semmancheri, Chennai, marking a significant addition to the company's order book.

Project Details and Scope

The contract encompasses multiple critical infrastructure components designed to enhance flood management capabilities in the region. The project scope includes formation of new tanks, construction of peripheral earthen drains, cut and cover channels, and capacity enhancement of surrounding tanks.

Contract Terms and Conditions

The tender was accepted at Rs 52,17,05,486, which represents a reduction of Rs 97,805 or 0.02% from the original estimate amount of Rs 5550.00 lakh. The company is required to provide a security deposit of Rs 1,04,34,110 (rounded to Rs 1,04,50,000) representing 2% of the contract value.

Administrative Framework

The contract award follows the 98th Tender Award Committee meeting held on February 17, 2026. The tender process commenced on January 21, 2026, with the deadline extended to January 30, 2026. The executing authority is the Superintending Engineer, Water Resources Department, Palar Basin Circle, Chepauk, Chennai.

RPP Infra Projects must sign the draft agreement within 15 days of receiving the acceptance letter. The security deposit must be furnished in the form of National Savings Certificate or Deposit Receipt, pledged in favor of "The Executive Engineer, WRD., Lower Palar Basin Division, Kancheepuram."

Regulatory Compliance

The company disclosed this contract award under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The disclosure confirms that no promoter, promoter group, or group companies have any interest in the awarding entity, and the contract does not fall under related party transactions.

RPP Infra Projects Limited has released its financial performance presentation for the quarter ended December 31, 2025, demonstrating substantial order book growth despite facing profitability challenges in the current quarter. The company's strategic focus on expanding its project portfolio has yielded significant results, positioning it for future growth.

Order Book Expansion and New Project Acquisitions

The company achieved remarkable success in securing new business during the period up to December 2025, winning 10 new projects with a combined value of ₹2336.78 crores across India. The project portfolio demonstrates diversification across multiple sectors, with infrastructure projects dominating the order book.

The company's current order book stands at ₹3963.66 crores across 41 projects, representing substantial work remaining to be executed. Additionally, RPP Infra is in the L1 stage for two more tenders valued at ₹260 crores, indicating potential for further order book expansion.

Major BHEL Project and Manufacturing Facility Development

A significant milestone includes securing a ₹1126.50 crores project from Bharat Heavy Electricals Limited (BHEL), achieved through the strategic leadership of Managing Director Mr. P. Arul Sundaram. This project necessitates establishing a dedicated manufacturing facility on 15 acres of land provided by BHEL in Varanasi, Uttar Pradesh.

Q3FY26 Financial Performance Analysis

The quarterly financial results present a mixed picture, with revenue growth offset by declining profitability metrics. Revenue increased to ₹375.59 crores in Q3FY26 from ₹316.79 crores in Q2FY26, marking a 19.00% quarter-on-quarter growth.

Operational Challenges and Management Response

The company's profitability decline stems from the current project execution phase, where most new projects, including those with BHEL, are in early stages with preliminary site establishment costs incurred but limited revenue contribution. The revenue mix has shifted toward sub-contracted work, while self-executed projects remain in initial phases.

Management has identified this challenge and is implementing measures to increase self-executed project volumes and accelerate project commencement. The company expects approximately ₹1600 crores worth of projects to begin generating revenue toward the end of Q4, with momentum continuing into Q1 of the next financial year.

Auditor Review and International Operations

Statutory Auditors M/s. KRSG Associates, Chartered Accountants, completed their limited review of the quarterly standalone and consolidated financial results for the quarter ended December 31, 2025. The review, conducted in accordance with ICAI standards, reported no negative or adverse remarks against the company's financial results.

The company's global expansion includes a project in Sri Lanka, currently awaiting final building permit approval. However, piling approval has been obtained, and piling work is expected to commence shortly. The company continues actively monitoring and participating in additional construction projects, anticipating positive outcomes in Q4 and the upcoming financial year.