Chavda Infra Surges on Massive ₹89 Crore Order as Company Proposes Dividend Amid Sector Headwinds

Chavda Infra Surges on Massive ₹89 Crore Order as Company Proposes Dividend Amid Sector Headwinds​

Chavda Infra Ltd., an established infrastructure and construction company based in Ahmedabad, announced a significant contract win while assuring shareholders of future rewards. The company secured a substantial Letter of Acceptance (LoA) worth ₹89.45 crore for a high-rise residential tower project in Ahmedabad. Simultaneously, the board recommended a bonus share issue and dividend payout to reward its growing shareholder base.

The new residential construction order comes from ADI Shantigram Abode LLP. Chavda Infra will undertake the construction of the core and shell structure for a proposed high-rise at Adani Shantigram Township. This project is scheduled to be completed within the next 24 months, adding material strength to the company’s expanding portfolio.

New Order Bolsters Infrastructure Portfolio and Execution Capabilities​

The latest contract award highlights growing confidence in Chavda Infra's operational efficiency. The order places the company firmly in the residential real estate segment while continuing its diversification across infrastructure projects.

Maheshkumar Chavda, Managing Director of Chavda Infra, confirmed that this project reflects strong customer faith in the firm’s capabilities. The secured contract serves as a major milestone as the company proactively works to expand and strengthen its entire project execution capability base.

Financial Health Despite Input Cost Pressures​

The company showcased solid operational performance even while navigating volatile market conditions. For the financial year 2026 (FY26), Chavda Infra reported revenue from operations of ₹320.6 crore, marking a healthy increase of 22.6 percent over the preceding year.

Focusing on the recent quarter, revenue rose by 49.8 percent year-on-year, reaching ₹167.6 crore. This strong quarterly performance was achieved through increased project execution across its residential, commercial, and infrastructure segments.

Managing Director Addresses Profitability Challenges and Future Growth Focus​

Despite operational successes, the company disclosed that profitability continues to face pressure. These challenges stem from rising raw material prices and labor migration issues. Geopolitical uncertainties were also cited as contributing factors impacting margins.

To mitigate these difficulties and enhance efficiency, Chavda Infra is investing in advanced aluminium formwork systems. This investment aims specifically at improving construction quality and significantly shortening project delivery timelines for upcoming contracts.

Commitment to Shareholders and Governance Standards​

The proposed dividend and bonus share issuance demonstrate management's commitment to rewarding shareholder trust. Maheshkumar Chavda stated that the company remains steadfastly focused on long-term growth trajectories.

Beyond project expansion, the firm is prioritizing strengthening its internal governance standards. This dual focus ensures sustainable operations while maintaining a robust commitment to corporate responsibility toward all stakeholders.