Ceigall's ₹5,300 crore Gujarat transmission LOI carries a 35-year, ₹608.67 crore-a-year payment stream

Ten days ago we wrote about Ceigall India's ₹704.70 crore Frontier Highway order in Arunachal Pradesh — one of a string of road wins the company disclosed through late August. On September 3, a different kind of award arrived, and it is roughly seven and a half times that size. REC Power Development and Consultancy Limited (RECPDCL) has issued Ceigall a Letter of Intent for a Gujarat power-transmission project valued at approximately ₹5,300 crore, inclusive of GST — against a company whose market capitalisation, at the September 3 close, works out to about ₹6,054 crore.

The structure disclosed is unlike Ceigall's road orders. The August 26 filing describes the win as a tariff-based contract secured through global competitive bidding by e-reverse auction, and the September 3 intimation lists a "Tariff Based Contract Agreement" among its terms. The press release states the company will receive ₹608.67 crore in annual transmission charges each year over the 35-year operational period — which, across 35 years, sums to ₹21,303 crore (35 × ₹608.67 crore) in aggregate transmission charges. That is arithmetic on the filing's own numbers, not a company projection; the filings do not state margins, financing terms, or who bears construction cost overruns. On the numbers disclosed, though, this reads less like a one-time construction payment and more like a long operating annuity layered on top of a 36-month build.

Two grounding notes. First, this is a Letter of Intent, not yet a signed contract — the September 3 filing records receipt of the LOI, with the contract agreement listed among the terms to follow. Second, transmission is not entirely new ground: a July 9 filing shows the company already creating security for a term loan to Velgaon Power Transmission Limited, a wholly owned project SPV. And the company describes itself, in its own press release, as an EPC builder of highways, expressways and bridges that is also expanding into utility-scale solar and battery storage — a 5 MW solar plant under Maharashtra's MSKVY 2.0 scheme, part of an aggregate 147 MW being developed by a subsidiary, was commissioned on August 31.

1. 17 Aug

   Delhi PWD cancels a tender where Ceigall was L1 (aggregate bid cost ₹330.84 Cr including GST), "in view of documentary consideration" per the e-tendering system.

2. 18 Aug

   Four MoRTH Letters of Acceptance totalling ₹2,149.62 Cr (bid cost), in JV with Sushee Infra & Mining (Ceigall 74%).

3. 19 Aug

   A fifth Arunachal win of ₹274 Cr — the company's press release tallies it as "Five LOAs, INR 2,423 Cr. in Two Days".

4. 21 Aug

   LOA from Himachal Pradesh's HPSIDC for Phase-I works at the Una Bulk Drug Park.

5. 24 Aug

   ₹704.70 Cr Frontier Highway order in Arunachal Pradesh (MoRTH, JV 74/26 with Sushee) — the subject of Part I of this series.

6. 26 Aug

   L1 bidder for the Gujarat transmission package from RECPDCL. Stock closes +4.2%.

7. 31 Aug

   First 5 MW solar plant commissioned under MSKVY 2.0, ahead of schedule, by a wholly owned SPV.

8. 3 Sept

   LOI received for the ₹5,300 Cr transmission project. Stock closes +2.0% on the highest volume of the past 60 sessions.

Set against that run of filings, the transmission LOI is by far the largest award Ceigall has disclosed in the past two months — bigger than the five Arunachal road LOAs (₹2,423 crore combined bid cost) and the ₹704.70 crore Frontier Highway order put together. One counterweight from the same window: the August 17 cancellation of a Delhi PWD tender where Ceigall had been L1 is a reminder that an L1 position, and even an LOI, sits upstream of a signed contract.

The tape's response has been steady rather than explosive. From the August 18 close of ₹309.15 — the low of this stretch — the stock has climbed to ₹347.55. The largest daily gain came on the L1 filing (+4.2% on August 26), followed by +2.5% on August 24, the day the Frontier Highway order was disclosed, with the LOI intimation's +2.0% on September 3 the third-largest. September 3's volume of about 24.3 lakh shares was the heaviest of the last 60 sessions. Even so, the close sits roughly 14.3% below the 52-week adjusted high of ₹405.70 set on June 30, and well above the 52-week low of ₹222.61 from December 9, 2025.

The June quarter — reported August 8 — gives the scale of the business this project lands on. Consolidated revenue of ₹969.64 crore was up 15.7% on Q1 FY26's ₹838.18 crore, and net profit of ₹63.75 crore was up 24.2% on ₹51.34 crore. Both were sharply below the March quarter (₹1,386.51 crore revenue, ₹129.03 crore profit) — a Q4-to-Q1 step-down that also appears in the prior year's numbers. Operating margin held at 14.53%, and consolidated interest cost was ₹43.92 crore for the quarter. A ₹5,300 crore, 36-month build would be large relative to a company currently producing under ₹1,000 crore of revenue in a typical quarter — how it is financed is the disclosure to wait for.

On the register, little moved into the June quarter: promoters held 82.06% (14.29 crore of 17.42 crore shares) at both March 31 and June 30, 2026. Within the institutional sliver, FII holdings rose to 67.6 lakh shares from 54.6 lakh, while DII holdings fell to 63.6 lakh from 93.5 lakh. Separately, the board meeting held on Saturday, August 8, 2026 set September 11, 2026 as the record date for the final dividend, and approved a proposal to raise funds via commercial paper.