On 27th June 2025, Teerth Gopicon Limited, a listed infrastructure development company, disclosed to the National Stock Exchange of India Limited a critical development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received a formal termination letter from Madhya Pradesh Jal Nigam Maryadit (MPJNM) regarding a significant multi-village drinking water supply project awarded on a turnkey basis in October 2023.

The terminated contract was related to the Engineering, Procurement, Construction, Testing, Commissioning, Trial Run and Operation & Maintenance (O&M) for 10 years of two major water supply schemes:

1. Karanjiya in District Dindori

2. Shahpura-Mehandwani, spanning across Districts Jabalpur, Mandla, and Dindori

The bundled package involved developing large-scale infrastructure for rural water supply in some of the most water-stressed areas of Madhya Pradesh, and was one of the prominent projects undertaken by Teerth Gopicon in the last financial year.

Reason for Termination

According to the disclosure, the contract has been terminated by MPJNM primarily due to non-submission of fresh E-bank guarantees by Teerth Gopicon. This financial and procedural lapse triggered a breach of contractual obligations.

The company further stated that MPJNM may initiate legal proceedings against Teerth Gopicon Limited under relevant legal frameworks, which may have legal and financial consequences depending on subsequent government decisions.

Details of the Original Agreement

As per Annexure A of the disclosure:

• Parties involved: Madhya Pradesh Jal Nigam Maryadit and Teerth Gopicon Limited

• Nature of Contract: Comprehensive turnkey execution of EPC and 10-year O&M responsibilities

• Letter of Award (LOA) issued: 5th October 2023

• Geographical Scope: Multi-village drinking water schemes in four districts of Madhya Pradesh

This contract was aligned with the state’s rural water infrastructure goals, potentially worth several hundred crores, and was part of Teerth Gopicon’s strategic expansion in water infrastructure EPC contracts.

Impact on Company

While the company has not yet quantified the exact financial loss or contract value, the termination may adversely affect Teerth Gopicon's revenue visibility, particularly in the water infrastructure vertical. The company had positioned this project as a major milestone in its FY2024-25 growth roadmap, and its sudden withdrawal represents a setback in execution capacity and future bid eligibility.

Further, the termination also raises concerns around the company’s compliance practices, particularly with regard to financial instruments like E-bank guarantees, which are vital for securing government projects. Any legal proceedings initiated by MPJNM could result in reputational damage and might impact the firm’s ability to pre-qualify for future public infrastructure tenders.

SEBI Regulatory Compliance

Teerth Gopicon’s filing to the stock exchange complies with the Regulation 30 of SEBI LODR Regulations, 2015 and SEBI’s Master Circular dated 13th July 2023, which mandates material disclosure of such terminations or contract failures.

As per Annexure A attached in the regulatory filing:

• The company confirmed that the reason for termination was the non-submission of fresh bank guarantees, a critical compliance requirement post-award of public sector infrastructure projects.

• The contract value, timelines, and further financial impacts have not been disclosed in the current filing, pending further developments.

The company has committed to disclose additional updates should there be any significant change in the situation, especially if MPJNM initiates legal proceedings or financial penalties.

Company Background and Financial Overview

Teerth Gopicon Limited (TGL) is an infrastructure EPC firm operating primarily in water supply, sewerage, and construction of public utilities. Listed on NSE with ISIN INE0K6601012, the company has been expanding its portfolio across central and northern India.

The terminated project was part of a larger growth trajectory, wherein TGL was leveraging government-backed water schemes to diversify its income from road and structural EPC contracts. The firm had shown steady traction in order book expansion until this disclosure.

The immediate termination may impact not only the order book size, but also delay or halt revenue realization from this project, depending on the accounting treatment of initial mobilisation work—if any had been performed before the termination.

Conclusion and Forward Outlook

The termination of such a strategically important EPC contract comes as a serious concern for Teerth Gopicon Limited, particularly in light of compliance lapses in submitting the requisite bank guarantees. This could have a domino effect on its operational credibility and its ability to retain or bid for similar public projects in the near future.

Market participants, shareholders, and analysts will be watching closely for:

• Clarifications on the financial magnitude of the contract

• Any legal notices or claims raised by MPJNM

• Reputational impact and business continuity in the water infrastructure segment

• Board-level accountability for the lapse

The company has stated that any further development will be promptly updated on their official website and submitted to the stock exchange. Until then, investors are advised to remain cautious about potential financial implications stemming from this termination.

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