Afcons Infrastructure Limited has informed regarding Disclosure of material issue
AFCONS · price
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Awaiting price reaction for this filing.
Afcons Infrastructure has received a termination notice from Société Autoroutière du Gabon (SAG), a private client, for an EPC contract worth about EUR 113.03 million (roughly ₹1,000+ crore) covering 117 km of National Road NR1 in Gabon. The company says about 93.47% of the project was already completed and opened to traffic nearly two years ago, with only balance portions pending due to land handover delays. Afcons believes the termination is not in line with contractual terms and is pursuing legal remedies. Management has clarified the dispute is project-specific and does not impact the overall order book, operations, or business outlook.
The termination removes a sizeable foreign order from the backlog, but since 93% of work is already done and the company disputes the termination, the near-term financial hit may be limited to receivables and legal costs. Investors should watch for further updates on the legal outcome and any provisioning the company may take.