Shares of Bondada Engineering soared 10% on Friday, hitting the upper circuit at INR 425.05 apiece on the BSE, after the company announced a major solar power project win worth INR 9,000 crore from the Government of Andhra Pradesh. The development has catapulted the company’s total order book to over INR 14,000 crore, marking a pivotal moment for the mid-cap engineering and infrastructure firm.
Major Boost from State Renewable Push
In a filing with the stock exchange, Bondada Engineering said that its wholly owned subsidiary Bondada Renewable Energy has got approval to develop 2,000 MW (AC) / 2,600 MWp (DC) of solar power in Ananthapuramu and Sri Sathya Sai districts of Andhra Pradesh. The proposal was approved in the State Investment Promotion Board (SIPB) meeting held on 15 May 2025.
Under the Andhra Pradesh Integrated Clean Energy Policy 2024, the project must be completed within 24 months. It will be supported by state-level incentives, including land leases for up to 30 years at INR 31,000 per acre annually, with a 5% escalation every two years. The state will retain the right of first refusal on up to 30% of the power generated, while Bondada is free to sell the remaining output in open markets.
A Turnaround Trigger?
The order win comes at a critical time for the company. Bondada Engineering shares had declined over 30% year-to-date and touched a recent low of INR 333 earlier in May. The announcement helped reverse that trend, with the stock rebounding more than 25% in just a few sessions. Friday’s rally outpaced the broader market, where the BSE Sensex rose a modest 0.96%.
This is also the second time in May that Bondada’s stock has hit the upper circuit, the first instance being on May 12. The company’s market capitalization now stands at approximately INR 4,668 crore.
Long-Term Revenue Pipeline
Beyond the immediate boost to the order book, Bondada Engineering expects the project to become a significant revenue driver in the long term. From FY2029 onwards, Bondada estimates annual revenue of INR 1,160 crore from Independent Power Producer (IPP) operations tied to this and similar projects. Execution of the IPP model is planned across FY2026 to FY2028.
The project is also expected to generate 3,900 jobs locally, adding a socioeconomic dimension to the win.
Bondada Engineering: Business Overview
Bondada Engineering was established in 2012 and operates in telecom and solar energy sectors. They offer engineering, procurement and construction (EPC) and operations and maintenance (O&M) services. They have installed over 12,500 telecom towers and laid 4,300 km of optical fiber cable (OFC). Their product range includes telecom towers, solar MMS structures, and building materials like uPVC windows and Smartfix-branded construction hardware.
Bondada’s financials are healthy with ROE of 69% and ROCE of 78%. As of 31st March 2025, the company had an order book of INR 5,044 crore which has now increased to INR 14,000 crore after the Andhra Pradesh project announcement.
Bondada Engineering Post-IPO Performance
Bondada Engineering launched its IPO on 18 August 2023, with a total issue size of INR 42.72 crore. It was a total Fresh issue. The IPO received strong investor interest and was subscribed by 112.33 times. The IPO debuted with an impressive of 99.49% from its IPO allotment price of INR 75 per share. The stock made two tops around INR 688 per share, first was on 30 August 2024 and the second was on 13 December 2024, reflecting a multibagger ~817% return from its IPO allotment price. Currently, it is trading around INR 425 per share, a correction of ~38% from its all-time high of INR 689.
Industry Implications
The mega project reflects broader trends in India’s renewable energy space, particularly the push by state governments to fast-track solar capacity additions under the national Net-Zero emissions framework. For Bondada, the allocation not only enhances visibility but could elevate its profile among institutional investors and public sector clients.
Bondada Engineering’s successful bid and swift market reaction may also indicate growing investor appetite for mid-cap players in the green infrastructure space—especially those with operational execution and a scalable business model.
Looking Ahead
While the sharp recovery in the stock price offers near-term relief, market watchers will be keenly observing the company’s execution timeline and revenue realization, especially under the IPP model. With favorable policy backing, land availability, and power evacuation support, Bondada Engineering appears well-positioned to deliver.
Whether this becomes a breakout moment or a flash in the pan will depend on how the company manages costs, timelines, and regulatory complexities in the coming quarters. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.