Desco Infratech secures new LOAs and orders worth Rs 8.08 crore
Finance Saathi Team
25/Nov/2025
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Desco Infratech reported receiving an MNGL LOA of Rs 1.77 crore linked to bids previously disclosed, forming part of its expected Rs 26 crore aggregate LOA pipeline.
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The company also secured additional LOAs and purchase orders of about Rs 6.31 crore from Adani Total Gas, KP Energy, Sundrops Energia and Antelopus Selan Energy.
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Overall orders total Rs 8.08 crore covering service contracts, overhead line work, DP structure projects and MDPE pipeline installations for multiple domestic clients.
Desco Infratech Limited, a company engaged in engineering, infrastructure and energy-related services, has announced a substantial set of new orders and Letters of Acceptance that collectively amount to Rs 8.08 crore. This update has been formally communicated to the BSE Limited through an official filing dated 25 November 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company has disclosed that it has received a major Letter of Acceptance from Maharashtra Natural Gas Limited (MNGL) valued at Rs 1.77 crore, a development that forms part of the group of bids earlier reported to the stock exchange. This LOA pertains to the L1 and L2 bids that the company had informed the exchange about on 26 September 2025. Additionally, Desco Infratech had previously announced on 27 October 2025 that it had emerged as the successful bidder for multiple projects amounting to approximately Rs 26 crore in expected LOAs. The company has clarified that the MNGL LOA forms part of these large anticipated orders.
Apart from the MNGL contract, the company has also reported additional orders amounting to approximately Rs 6.31 crore, received from prominent clients including Adani Total Gas Limited, KP Energy Limited, Sundrops Energia Private Limited, and Antelopus Selan Energy Limited. These orders highlight the company's diversified presence across gas distribution, renewable power infrastructure, industrial electrification, and energy engineering services.
This disclosure has been signed by Mr. Malhar Pankaj Desai, the Whole-time Director of Desco Infratech Limited, reaffirming the organisation’s commitment to transparent and timely communication of key financial and operational updates.
To understand the depth of the announcement and its implications, it is important to examine each component of the disclosure, the nature of the orders awarded, the value contributed by each client, the kind of services to be executed, and the strategic relevance of these projects to Desco Infratech’s operations. Such detailed analysis provides necessary insight into how this order win strengthens the company’s operational pipeline and future revenue visibility.
The MNGL contract, which contributes Rs 1.77 crore to the total order value, is associated with the hiring of support services for PNG operations and maintenance. This includes providing services for PNG connections in the PCMC area, specifically Chinchwad, under the CGD Network of MNGL in Pune. This service contract spans a period of two years, indicating that it will contribute steady revenue over the contract duration. The nature of this contract suggests that Desco Infratech continues to build expertise and trust within the urban gas distribution sector, which is rapidly expanding across India due to government encouragement and increasing adoption of natural gas.
The next major component of the order set pertains to Adani Total Gas Limited, which has awarded the company a significant contract valued at Rs 5.04 crore. This contract is described as TD to PD service as part of RFP_SP_138-ARCPNG-SERV, which includes work in regions such as Faridabad, Palwal and Khurja, along with LMC and MDPE associated work for Faridabad and Palwal. These tasks typically involve pipeline development, installation, commissioning, and supporting infrastructure for city gas distribution. Adani Total Gas is one of the largest CGD companies in India, and securing such an order enhances Desco Infratech’s credibility and positioning within the sector.
The third order is from KP Energy Limited, valued at Rs 78.25 lakh. The order relates to a 33 kV overhead line installation project in Bharuch. This kind of work involves setting up high-voltage electrical infrastructure, which is often required for renewable energy projects, industrial power supply networks, and grid integration activities. KP Energy is a well-known player in the renewable energy infrastructure segment, which indicates that Desco Infratech’s expertise is well-aligned with the requirements of the power transmission ecosystem.
The fourth order, amounting to Rs 5.41 lakh, comes from Sundrops Energia Private Limited. Although relatively smaller in comparison to the other contracts, this order contributes to the overall diversification of the company’s portfolio. The nature of work for this project was not elaborated in the filing but typically involves specialised engineering tasks based on the company’s operating sectors.
The final order in this announcement is from Antelopus Selan Energy Limited, valued at Rs 42.65 lakh. This contract pertains to the Supply, Installation, Testing and Commissioning of an MDPE Pipeline for Cambey Field. MDPE pipelines are widely used in gas distribution networks for their durability, flexibility and pressure handling capabilities. This type of project further strengthens Desco Infratech’s portfolio in the natural gas infrastructure segment, which is a major area of expansion in India’s energy plans.
When combined, these orders amount to Rs 8,08,44,396.85, including GST. This figure highlights the steady inflow of business opportunities for Desco Infratech, which continues to expand its involvement in gas distribution networks, power transmission infrastructure, pipeline installation, and energy engineering services.
The disclosure also states that the orders have come from domestic entities, reaffirming the company’s strong engagement with Indian industry leaders and its deep integration into sectors such as city gas distribution, renewable energy, and industrial utilities.
The company has also clarified that the promoter group or related party entities have no interest in any of the clients that awarded the orders. Additionally, the orders do not fall under the category of related party transactions, which reflects that the contracts have been obtained independently through competitive bidding and business merit.
Desco Infratech’s operations are shaped by diverse project categories that include engineering, procurement, installation, commissioning and maintenance-based services. Given this context, the new order inflow enhances the company’s operational backlog and strengthens its financial visibility. Such inflows are especially important in infrastructure and engineering businesses where order books play a critical role in determining future revenue.
The company’s presence across various energy-related domains such as CGD networks, electrical infrastructure, and pipeline engineering places it in a favourable position, as India continues to invest heavily in expanding its urban gas distribution networks, industrial power capacity, and energy logistics infrastructure.
Gas distribution networks in particular have been among the fastest-growing energy sub-sectors in India, driven by government initiatives promoting clean energy and the expansion of city gas distribution licences across multiple states. Desco Infratech’s repeated involvement in contracts from companies like MNGL and Adani Total Gas demonstrates the company’s ability to operate effectively in this growing market.
Similarly, renewable energy expansion across India has resulted in greater demand for power evacuation infrastructure such as 33 kV lines, substations and distribution networks. Desco’s project with KP Energy falls within this category and supports the company’s diversification into the green energy ecosystem.
One of the notable aspects of the disclosure is the structured format, which provides details not only about the order values but also the awarding entities, project descriptions, nature of services, execution timelines, and regulatory compliance. This aligns with SEBI’s objectives to improve corporate transparency and ensure that investors receive a clear understanding of operational developments.
From the perspective of investors and analysts who track the company’s performance, this announcement is likely to be interpreted as a positive development. The inflow of orders demonstrates continued business momentum and suggests strong operational demand across the sectors served by Desco Infratech.
Furthermore, the diversity of clients—from major gas utilities to renewable energy companies and private industrial entities—indicates that the company is not dependent on a single sector or client category for its revenue stream. This type of diversification is generally viewed as favourable from a business sustainability standpoint.
For Desco Infratech itself, these contracts also serve to strengthen long-term relationships with key industry players. Repeat business from respected organisations such as Adani Total Gas and MNGL enhances its credibility and may open avenues for larger projects in the future.
The company’s communication emphasises that all the newly awarded contracts will be executed as per the terms of each respective agreement. While the announcement does not specify execution timelines beyond the statement “as per the Contract,” infrastructure projects typically span several months to years, providing medium-term revenue visibility.
In addition, the filing highlights that the company remains fully compliant with regulatory requirements, reflecting discipline in corporate governance. Transparent disclosure practices help maintain investor confidence and support the company’s reputation in the public markets.
Overall, Desco Infratech’s announcement regarding the receipt of new orders worth Rs 8.08 crore reflects positive operational developments and reinforces the company’s participation in the growing infrastructure and energy segments. As India continues to expand its energy distribution networks and industrial infrastructure, Desco Infratech appears well-positioned to benefit from ongoing sectoral growth.
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