RDB Infrastructure and Power Shares Surge 4% on ₹277 Cr Solar Project Deal

RDB Infrastructure and Power Limited, a leading company in real estate construction, development, and infrastructure projects, has recently signed a Memorandum of Understanding (MoU) with NRG Renewable Resources Private Limited. This agreement marks a significant step in the company's expansion into renewable energy, particularly solar power projects.

The MoU involves the execution of solar power projects totaling 51 MW (AC) / 65 MW (DC) across six sites near Nagpur, Maharashtra. The total EPC (Engineering, Procurement, and Construction) contract value is ₹277 crore, awarded by a domestic entity. This move is expected to bolster RDB Infrastructure’s renewable energy portfolio and solidify its position in the market.

RDB Infrastructure and Power Limited has a market capitalization of ₹1,115 crore. The company's shares have responded positively to the news, increasing by 4% in today’s market session. The shares reached a high of ₹56, up from their previous close of ₹53.83 per share. This positive market reaction highlights the investor confidence in the company's strategic initiatives and growth potential.

The company has clarified that the contract with NRG Renewable Resources does not involve any related party transactions. Neither the promoters nor the group companies have any interest in NRG Renewable Resources, ensuring transparency and fairness in the deal.

RDB Infrastructure and Power Limited, formerly known as RDB Realty & Infrastructure Limited, is an India-based company engaged in infrastructure development, construction, and renewable energy projects. The company undertakes EPC and turnkey projects across various sectors, including power, real estate, and industrial infrastructure. With a growing focus on solar and sustainable energy solutions, RDB Infrastructure is positioning itself as a key player in the renewable energy market.

The company has demonstrated robust financial performance over the past five years, with a healthy profit growth of 21.3% CAGR. It has also achieved a Return on Capital Employed (ROCE) of 6.75% and a Return on Equity (ROE) of 6.09%. Additionally, RDB Infrastructure has successfully reduced its debt levels, further strengthening its financial position.

The company's sales have shown significant growth, increasing from ₹20.34 crore in Q4FY25 to ₹67.56 crore in Q1FY26. Operating profit rose to ₹2.50 crore from ₹0.92 crore, and net profit increased from ₹1.16 crore to ₹2.72 crore over the same period. These financial metrics underscore the company's strong operational performance and its ability to generate consistent returns.

Promoter shareholding has slightly decreased from 70.28% in Q1FY26 to 68.64% in Q2FY26, while Foreign Institutional Investors (FIIs) have significantly increased their holdings to 2.22% from 0.25%. Public holding stands at 29.15%, reflecting a well-balanced ownership structure.

In conclusion, the MoU with NRG Renewable Resources is a strategic move that aligns with RDB Infrastructure and Power's vision of expanding its renewable energy portfolio. The positive market response and the company's strong financial performance indicate a promising future for RDB Infrastructure and Power in the renewable energy sector.