Coromandel Engineering Company Limited, a prominent player in the Indian infrastructure and construction industry, has announced the receipt of contracts worth a total of Rs 134 crore from domestic entities. The announcement was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, through a formal communication to the Bombay Stock Exchange (BSE) on August 1, 2025.

The company has been awarded two significant projects that collectively mark an important development in its operational and financial trajectory. The first project is a residential apartment construction contract worth Rs 93 crore, awarded by M/s Sivanesh Bagerathi Enterprises, a partnership firm. The second is a Rs 41 crore contract for construction, repair, and renovation of a hostel building, awarded by Sri Lakshmi Ammal Educational Trust, an entity in which the promoter group of Coromandel Engineering holds a significant interest.

This hostel-related project qualifies as a related party transaction, but the company has clarified that the engagement is being undertaken at arm’s length, complying with the applicable regulatory norms under SEBI’s circular issued on 13th July 2023.

Project-wise Details

1. Residential Apartment Construction

• Awarded By: M/s Sivanesh Bagerathi Enterprises

• Contract Size: Rs 93,00,00,000 (excluding taxes)

• Nature of Work: Full construction of residential apartments

• Type of Entity: Domestic

• Timeline for Completion: 30 months from the date of commencement

• Promoter Involvement: Not applicable; no direct or indirect interest reported

This contract reflects the growing demand for residential infrastructure in India’s urban zones, especially from private entities investing in long-term housing projects. With a timeline of two and a half years, this engagement provides Coromandel Engineering with a steady revenue stream and capacity utilisation assurance.

2. Hostel Building Construction, Repair, and Renovation

• Awarded By: Sri Lakshmi Ammal Educational Trust

• Contract Size: Rs 41,00,00,000 (excluding taxes)

• Nature of Work:

  • New Construction – to be completed within 15 months

  • Renovation – to be completed within 3 months

• Type of Entity: Domestic

• Promoter Involvement: Yes, the promoter has significant interest in the awarding trust

• Related Party Disclosure: Yes, this constitutes a related party transaction, but the company has confirmed it is being executed at arm’s length pricing

This project reflects the increasing importance of educational infrastructure development in the country. The Trust, known for its focus on academic excellence, is investing in improving hostel facilities, which aligns with the national objective of creating better student accommodation environments.

Strategic Relevance

Coromandel Engineering’s receipt of these two contracts underscores the company’s technical capability and growing client confidence. Securing a project from a non-affiliated private firm, along with a related party transaction under transparent conditions, also signals the company’s governance compliance and operational breadth.

Moreover, the nature of these projects spans both greenfield (new construction) and brownfield (renovation and repair) scopes, which highlights the company’s ability to deliver across the entire construction value chain.

From a revenue standpoint, the Rs 134 crore inflow significantly strengthens the company’s order book, especially in a market environment where government contracts are becoming increasingly competitive and private players are seeking reliable execution partners.

Regulatory Compliance

In its BSE filing, Coromandel Engineering has followed SEBI guidelines issued under the circular number SEBI/HO/CFD/CFD-PoD-/P/CIR/2023/123 dated 13th July 2023, outlining transparency in material event disclosures. The related party involvement has been clearly acknowledged, and the company has assured stakeholders that the project pricing and terms adhere to arm’s length principles, thereby preventing any conflict of interest.

Such regulatory adherence not only safeguards investor interest but also reinforces the company’s commitment to corporate transparency and integrity, crucial metrics in the current financial climate.

Market Outlook

The Indian construction sector is witnessing renewed momentum, driven by both public and private investments. With rising urbanisation and institutional requirements, companies like Coromandel Engineering are poised to benefit from increased opportunities, particularly in residential and institutional verticals.

This dual contract win serves as a positive indicator of project pipeline visibility for the firm. It also enhances the company's portfolio with long-duration high-value residential projects and time-bound educational infrastructure development assignments.

In conclusion, Coromandel Engineering’s Rs 134 crore order win is more than just a financial milestone. It represents a vote of confidence from both independent and promoter-related entities, while also validating the company’s position in India’s competitive construction industry. Stakeholders, including investors and regulators, will likely see this as a step forward in business expansion under compliant, ethical practices.

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