Afcons Infrastructure Shares in Focus After €113 Million Gabon Road Contract Termination Notice
Shares of Afcons Infrastructure Ltd. are set to remain in focus on Wednesday, February 25, after the company disclosed that Société Autoroutière du Gabon has issued a termination notice for a contract valued at approximately €113.03 million.The development was communicated to stock exchanges on Tuesday, bringing attention to the company’s international project exposure and its ongoing contractual dispute.
Details of the Gabon Road Project
According to the company’s exchange filing, the engineering, procurement, and construction contract was awarded by a private client for the design, construction, rehabilitation, and upgrading of a 117 kilometre stretch of National Road NR1.Afcons Infrastructure stated that a substantial portion of the project, approximately 93.47 percent as of December 31, 2025, has already been completed. The completed sections were opened to traffic nearly two years ago. The company added that certain remaining portions of the project were pending due to delays in land handover.
Company Terms Termination Inconsistent with Contract
Afcons Infrastructure said it believes the termination notice issued by the client is inconsistent with the contractual terms and applicable law. The company confirmed that it is actively pursuing its contractual and legal remedies in response to the notice.The company clarified that the dispute is specific to the Gabon road project and does not affect its broader order book, operational strength, or overall business outlook.
It further stated that the termination is not expected to have any material adverse impact on ongoing operations or the execution of other projects in its portfolio.
Afcons Infrastructure Share Price Performance
Shares of Afcons Infrastructure ended the previous trading session 0.9 percent lower at ₹310 per share.Over the past month, the stock has declined by 9 percent. On a six month basis, it has fallen 28 percent.
The company said it will continue to update stock exchanges on any material developments related to the matter.
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