Afcons Clarifies Croatia Project Status; Shares Drop 7.12%

Mumbai, May 18: Afcons Infrastructure clarified developments related to its Croatia infrastructure project bids, stating that two road tenders have been cancelled while the company remains selected as the most suitable bidder for a railway rehabilitation project, according to an exchange filing.

The company said it had earlier informed stock exchanges on July 17 and July 21, 2025, regarding being declared the lowest bidder for multiple infrastructure projects in Croatia.

These projects included two road construction packages, J324/23 and J325/23, awarded by Croatian Motorways Ltd, along with a railway reconstruction and second-track construction project on the Dugo Selo-Novska rail corridor involving electrification, signalling and telecommunication works for HŽ Infrastruktura d.o.o.

Afcons clarified that for the railway project, it has now been selected as the most suitable bidder by the client, with a proposal to accept its bid for rehabilitation and construction work on the Dugo Selo-Novska railway line in Croatia.

However, for the two road construction packages, the company stated that it received communication from the client regarding cancellation of both tenders after the offered bid price exceeded the client’s planned or secured financial resources.

The company added that these developments relate to disclosures previously made on May 11, 2026, and May 16, 2026, under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Stock Market Snapshot

Afcons share price witnessed sharp selling pressure during morning trade on May 18. The stock was trading at ₹312.55, down 7.12% from the previous close, as of 10:14 AM IST.

According to market data, the stock opened at ₹331 and touched ₹331.50 before falling to a session low of ₹312.25. The company’s market stood at around ₹11,510 crore.

The market reaction followed investor assessment of the cancellation of the Croatia road tenders despite positive progress in the railway infrastructure project.

Company Background

Afcons Infrastructure Ltd is an engineering and construction company engaged in transportation infrastructure, marine works, metro rail projects, highways, bridges and industrial construction.

The company executes domestic and international infrastructure projects across sectors including railways, roads, ports, urban transit and hydro projects.

Afcons is part of the Shapoorji Pallonji Group and has a presence across Asia, Africa and Europe through large-scale EPC and infrastructure development contracts.

Conclusion

The clarification indicates mixed developments for Afcons in Croatia, with progress in the railway project offset by cancellation of two road contracts due to funding constraints at the client level.

The company stated that it will continue to inform stock exchanges regarding any further material developments associated with the Croatia infrastructure projects.

Source:

• https://www.nseindia.com/get-quote/equity/AFCONS/Afcons-Infrastructure-Limited
• https://nsearchives.nseindia.com/corporate/AFCONS_18052026095404_Afcons_clarification.pdf