Dilip Buildcon Ltd.'s shares surged nearly 6% after the infrastructure company announced that it has received a Letter of Intent from the Petroleum and Natural Gas Regulatory Board for developing an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.
The stock was up at Rs 416.15 apiece on NSE around 10 am, gaining from its previous close at Rs 393.
The order further strengthens the company's order book, which already stood at Rs 27,691 crore as on June 30, 2026, offering long-term revenue visibility for the business.
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LPG Pipeline To Connect Paradip And Raipur
As per the exchange filing, Dilip Buildcon will undertake the design, financing, development, construction, operation and maintenance of the proposed LPG pipeline, subject to applicable regulatory approvals.
The pipeline will transport LPG to bottling plants operated by various oil marketing companies. The infrastructure is also intended to replace the existing road-based movement of LPG through tankers, which could help improve road safety.
The pipeline will operate as a common carrier under the applicable PNGRB framework, allowing eligible oil marketing companies and other users to access the available capacity. Revenue will be generated through the applicable transportation tariff for LPG.
Rs 1,800 Crore EPC Opportunity
The project will be implemented through a special purpose vehicle, in which Dilip Buildcon will hold 100% equity. The engineering, procurement and construction (EPC) work is proposed to be awarded to Dilip Buildcon.
The EPC opportunity is estimated at approximately Rs 1,800 crore, excluding GST, with the construction work to be completed over 36 months. The broader project includes an operating period of 25 years after the three-year construction phase.
Dilip Buildcon clarified that the company will be responsible for developing and operating the pipeline infrastructure and providing transportation services. The company will not be involved in LPG procurement, trading, distribution, or sale, and therefore will not bear the associated commercial risks.
Dilip Buildcon Share Price Movement
The stock has been down for over a year now, losing nearly 15% during the period, even after including today's rally. During the past month, the stock has been down over 5.4%, and in 2026, it has declined almost 12% so far.
Currently, it is trading at a price-to-earnings multiple of 5.09 times, with a market cap of Rs 6,768.26 crore.
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