Gabon Authority Terminates €113 Million NR1 EPC Contract
Afcons Infrastructure Ltd, the flagship infrastructure engineering and construction arm of the Shapoorji Pallonji Group, on Tuesday disclosed that Société Autoroutière du Gabon has issued a notice terminating its Engineering, Procurement and Construction contract for National Road NR1 in Gabon.The contract involved the design, construction, rehabilitation, and upgrade of approximately 117 km of National Road NR1 and was valued at €113.03 million.
According to the company, about 93.47% of the project had already been completed as of December 31, 2025. The completed stretch has been open to traffic for nearly two years. Afcons stated that certain remaining sections are pending land handover.
The company maintained that the termination is inconsistent with the contractual terms and applicable law. It said it is continuing to pursue contractual and legal remedies in connection with the matter.
Dispute Project-Specific, No Material Impact on Business
Afcons clarified that the dispute is limited to the Gabon project and does not affect its broader order book, operational capabilities, or overall business outlook.The company confirmed that the termination is not expected to have any material adverse impact on its ongoing operations or execution of other projects. It added that stock exchanges will be informed of any significant developments related to the matter.
Operating Performance Remains Resilient
Despite the contract termination notice, Afcons reported improved operating performance.EBITDA for the period rose 12.3% year on year to ₹409.5 crore, compared with ₹364.6 crore in the corresponding period last year. The EBITDA margin expanded sharply to 13.8% from 11.4%, supported by improved cost management.
For the nine months ended December 2025, the company reported total income of ₹9,545 crore.
EBITDA for the nine month period increased 1.8% year on year to ₹1,269 crore, excluding a one time labor code impact of approximately ₹77 crore. Margins for the nine months improved to 13.3%.
Profit after tax for the nine month period stood at ₹339 crore.
Afcons Infrastructure Share Price
Shares of Afcons Infrastructure Limited closed at ₹307.60 on the BSE on February 24, down ₹5.15 or 1.65% for the day.The company reiterated that the project termination is not expected to materially affect its financial position or execution of other contracts.
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