Dharan Infra-EPC Ltd Surges 5% After Securing ₹215 Crore Solar Power Project
Known for its expertise in infrastructure and EPC (Engineering, Procurement, and Construction) projects, Dharan Infra-EPC Ltd has made headlines after its subsidiary secured a major solar power project in Maharashtra worth around ₹215 crore. This large contract value, nearly matching the company’s market cap, sparked a sharp rally with the stock hitting its upper circuit.
Dharan Infra-EPC Limited’s stock, with a market capitalisation of ₹240.52 crores, rose to ₹0.46, hitting the intraday upper circuit, up 5 percent from its previous closing price of ₹0.44. Furthermore, the stock over the past year has given a return of 2.22 percent.
Dharan Infra Solar Private Limited, a subsidiary of Dharan Infra-EPC Limited, signed a supply agreement with Skymax Infropower Limited for a solar power project in Nanded District, Maharashtra, covering nine project sites. The agreement is worth approximately ₹215 crore, and involves setting up and commissioning a 75 MW (AC) or 95.10 MWp (DC) grid-interactive, ground-mounted solar plant.
The main scope of work includes design, engineering, procurement, supply, installation, testing, and commissioning of the entire 75 MW solar project. The contract is a material one for the company, meaning it will directly affect both financial and operational performance, and the project will be executed in a phased manner according to a mutually agreed plan. Completion of the project is expected within the financial year 2025-26 or 2026-27, as per the mutually agreed execution timeline.
In the financial quarter ending March 2025 (Q4 FY’25), the company reported revenue of ₹1.37 crore, rising 25.7% quarter-on-quarter (QoQ) from ₹1.09 crore in Q3 FY’25 but plunging 89.1% year-on-year (YoY) from ₹12.55 crore in Q4 FY’24. Over the past three years, sales recorded a negative compound annual growth rate (CAGR) of 44%, indicating a prolonged decline in business performance.
Net loss narrowed sharply to ₹2.19 crore in Q4 FY’25 from ₹20.77 crore in Q3 FY’25, showing strong sequential recovery, while improving from a loss of ₹5.40 crore in Q4 FY’24. Despite the better quarterly performance, the company’s three-year return on equity (ROE) CAGR remained weak at negative 4%, reflecting continued pressure on profitability.
Dharan Infra-EPC Ltd, incorporated in 2007, operates in real estate construction, development, and civil engineering projects under the EPC model. The company is involved in developing residential and commercial projects and executing various contractual works, primarily in Nashik and expanding into international markets. This recent solar project contract is expected to bolster the company’s position in the renewable energy sector and potentially reverse the recent trend of declining financial performance.
