Dilip Buildcon has been declared the lowest bidder for a major canal project awarded by the Water Resources Department, Government of Chhattisgarh. The order is valued at Rs 25,243.2 million (mn) excluding GST and covers construction of the Sikasar to Kodar Reservoir Link Canal pipeline along with testing, trial runs, commissioning and operation and maintenance for five years after completion. The project is part of the Pairy Project Scheme and will be executed on a lump-sum basis with a completion timeline of 30 months. The company was identified as L-1 in a competitive tender and the award has been made by a domestic entity.

The scope of work includes end to end delivery of the reservoir link canal pipeline and associated systems, with the contractor responsible for system commissioning and subsequent operation and maintenance for five years. Dilip Buildcon clarified that neither its promoters nor promoter group companies have any interest in the awarding entity and that the contract does not constitute a related party transaction. Earlier this month the company secured an Rs 1,602 million (mn) EPC contract from Odisha Bridge and Construction Corporation to build a six lane diversion road with service roads in Sundargarh district, with completion scheduled within 18 months.

Shares of Dilip Buildcon rose to intraday highs following the order win but pared most gains and were trading at Rs 437.65 as of 12.01 pm on Tuesday, down one point three five per cent. The stock has declined nearly eight per cent in 2026 so far, reflecting broader market pressures on infrastructure names.

The contract award reinforces the company's order book and underscores its role in large scale water resources projects, while the five year operation and maintenance obligation will extend post construction responsibilities. Execution on a lump-sum basis and the 30 month delivery horizon will be important metrics for project performance and cash flow realisation over the life of the contract.