H.G. Infra Engineering (NSE: HGINFRA) Shares Soar 10.8% to ₹562.45 After Winning REC Power Order

H.G. Infra Engineering shares surged 10.8% to ₹562.45 on Wednesday, August 19, 2026. The rally followed a Letter of Intent from REC Power Development and Consultancy Limited. The order covers the construction of two AIS substations in Uttar Pradesh. This marks H.G. Infra Engineering’s continued push into India’s power transmission sector, beyond its traditional roads and highways business. 

The stock defied broader market weakness during Wednesday’s session.

H.G. Infra Engineering Wins Key Transmission Project

H.G. Infra Engineering (HGINFRA.NS) received the Letter of Intent for building 220/132/33 kV AIS substations at two Uttar Pradesh locations. The project covers Ranipur in Mau district and Chunar in Mirzapur district.

• The award includes construction of associated transmission lines connecting both substations.
• Projects will run under a Build, Own, Operate and Transfer model for 35 years.

The concession carries annual transmission charges of approximately ₹450.11 million, or ₹45.01 crore. Execution is expected within 18 months, giving H.G. Infra Engineering a clear near-term revenue visibility window.

⚡ H.G. INFRA ENGINEERING — LOI RECEIVED

• Received Letter of Intent (LOI) from REC Power Development & Consultancy Ltd on Aug 18, 2026

• Project: Construction of 220/132/33 kV AIS Substations at Ranipur (Mau) & Chunar (Mirzapur), Uttar Pradesh

• Scope also includes…

— Stock aaj or kal (@stockaajorkal) August 18, 2026

Why This Order Matters for the Company’s Diversification

H.G. Infra Engineering has steadily expanded beyond road construction into power transmission and renewable energy projects. This REC Power order strengthens that diversification strategy meaningfully.

• The company previously secured a separate Jharkhand transmission contract worth ₹1,145.34 million annually.
• That earlier project also followed a 35-year BOOT model, awarded through REC Power Development and Consultancy.

Together, these transmission wins signal H.G. Infra Engineering’s growing footprint in India’s power infrastructure sector. Investors have responded positively each time the company has announced new REC Power Development contract wins this year.

Stock Performance Reflects Renewed Investor Confidence

H.G. Infra Engineering shares had traded well below their 52-week high heading into Wednesday’s rally. The stock’s 52-week range spans ₹429.50 to ₹1,049.95, showing significant volatility this year.

• Wednesday’s 10.8% gain marks one of the stock’s strongest single-day moves in recent months.
• The company’s market capitalization stood near ₹3,610 crore before this rally.

H.G. Infra Engineering’s Q1 FY27 results, approved August 12, 2026, showed standalone revenue falling 46.9% year-on-year to ₹907.2 crore. Standalone profit after tax dropped 77.5% to ₹28.3 crore, while the company swung to a consolidated net loss of ₹45.1 crore. Its order book, however, remained robust at ₹14,502 crore.

How This Compares to Sector Peers

H.G. Infra Engineering now competes more directly with established power transmission players following this diversification push. KEC International (KEC.NS) and Power Grid Corporation (POWERGRID.NS) remain significant names in India’s broader transmission infrastructure space.

REC Limited, the parent company of REC Power Development and Consultancy, continues to award multiple transmission contracts across Indian states this year. That steady deal flow gives EPC contractors like H.G. Infra Engineering consistent opportunities to expand their order books. Investors should watch whether the company can convert this pipeline into sustained revenue growth over coming quarters.

Key Takeaways

This REC Power order confirms H.G. Infra Engineering’s steady shift toward power transmission as a meaningful growth driver. With multiple BOOT-model contracts now in its portfolio, the company has built genuine revenue visibility over the next three decades. Investors should track execution timelines closely, since delays could offset the long-term annuity income these projects promise.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.