Dilip Buildcon wins Rs 2,524 crore Chhattisgarh water project

Dilip Buildcon has been declared the lowest bidder for a Rs 2,524.32 crore, excluding GST, water infrastructure project in Chhattisgarh. The project involves building the Sikasar to Kodar Reservoir Link Canal pipeline under the Pairy Project Scheme.

The Water Resources Department, Government of Chhattisgarh, is the awarding authority. DBL said the project will take 30 months to complete, followed by five years of operation and maintenance.

What the order covers

The contract includes construction of the reservoir link canal pipeline and related system works. Dilip Buildcon will also carry out testing, trial runs and commissioning before taking responsibility for operating and maintaining the system for five years.

The company described the contract as a domestic order. It said the award is classified as a General Contract based on its L1 status and as a confirmed Type A order.

Dilip Buildcon said it will move ahead with the official letter of award and project execution.

Particulars	Details
Order value	Rs 2,524.32 crore excluding GST
Awarding authority	Water Resources Department, Government of Chhattisgarh
Project	Sikasar to Kodar Reservoir Link Canal pipeline
Construction period	30 months
O&M period	5 years

Why the order matters

The new order is large compared with Dilip Buildcon's recent revenue levels. According to the supplied data, the contract value is about 97% of the company's average quarterly revenue of Rs 2,595.03 crore.

The order also comes as the company's recent revenue declined 21.6% year on year. The source said DBL had a backlog equivalent to 0.39 quarters of average quarterly revenue before this order, making fresh project wins important for future revenue visibility.

The contract value does not mean the full amount will become revenue immediately. Revenue will depend on project mobilisation and execution progress over the construction period.

Stock reaction

Dilip Buildcon shares initially rose to the day's high following the announcement before giving up the gains. At 12:01 pm on Tuesday, the stock was trading at Rs 437.65, down 1.35%.

The source also said the stock had fallen nearly 8% in 2026 so far at that point.

What investors will watch

Investors will watch for the formal letter of award and project mobilisation, followed by the pace of execution and revenue recognition.

The company's margins and cash generation will also remain in focus as it takes on a project of this size. The supplied financial data showed operating cash flow of Rs 131 crore in FY25, compared with Rs 1,080.50 crore in FY24.

The five year operation and maintenance period will keep Dilip Buildcon involved with the project after construction is completed. The company's progress in converting the order into active execution and revenue will be the next major factor to watch.