PIGL bags third consecutive contract for Udaipur Airport Project, order book hits Rs 52.43cr

Why Did Power & Instrumentation (Gujarat) Limited Stock Gain on June 5?

Power & Instrumentation (Gujarat) Limited (NSE: PIGL, BSE: 543912) saw its share price rise by 5% to close at ₹166.68 on June 5, 2025, after the company disclosed the receipt of a third consecutive work order from Nyati Engineering & Construction Private Limited. The ₹6.25 crore contract—covering electrical infrastructure work at the Udaipur Air Terminal—brings the total cumulative value of orders for the project to ₹52.43 crore within just one month.

The stock opened at ₹157.99 and remained in bullish territory throughout the day, supported by a traded volume of 0.38 lakh shares. Despite being in the BE series—limiting intraday trading—the upward momentum indicated growing investor confidence, particularly among retail participants tracking India‘s small-cap infra space. The stock’s current market capitalization stands at ₹288.24 crore, well above its 52-week low of ₹65.15 but still significantly off its ₹417.00 high.

What Does the New ₹6.25 Cr Udaipur Order Involve?

According to the regulatory filing submitted to both the NSE and BSE under Regulation 30 of SEBI’s LODR norms, Power & Instrumentation (Gujarat) Limited will be responsible for the design, supply, installation, testing, commissioning, and final handover of the complete power supply system at the Udaipur Air Terminal in Rajasthan. The new contract is to be completed within six months and includes all client interaction and final delivery obligations.

The order builds on two earlier contracts from Nyati Engineering & Construction: one worth ₹21.41 crore on May 5, 2025, and another valued at ₹24.77 crore on May 21, 2025. Together, the three orders underscore the client’s confidence in PIGL’s delivery capacity and execution efficiency.

Managing Director Padmaraj Padmanabhan Pillai noted that receiving three major orders in quick succession reflected the company’s strong operational consistency and its rising stature in the airport infrastructure vertical.

How Does This Fit into PIGL’s Broader Strategic Growth?

Founded in 1975, Power & Instrumentation (Gujarat) Limited has grown from a regional electrical contractor into a national EPC services player with particular expertise in highly regulated, precision-demanding infrastructure projects. With over 35 airport projects in its portfolio, the company is increasingly being seen as a dependable choice for terminal-level electrical system deployment in both metro and regional locations.

The company’s long-standing experience in electrifying more than 1,00,000 BPL households and laying over 20,000 km of HT and LT lines provides it a firm technical foundation. It also offers auxiliary infrastructure solutions like substation construction, power distribution panels, fire safety systems, ELV (extra-low voltage) networks, and building management systems, all of which are now in high demand as India accelerates airport modernization under schemes like UDAN 5.0 and greenfield terminal expansion drives.

What Do the Financials Say About Power & Instrumentation (Gujarat) Limited?

For FY25, the company reported a standalone total income of ₹171.28 crore, EBITDA of ₹19.59 crore, and a net profit of ₹11.75 crore. This implies an EBITDA margin of approximately 11.4%, which is commendable for a company operating in the fixed-margin EPC sector.

The stock’s trailing P/E ratio of 23.36 is modest compared to industry peers with airport infrastructure exposure. High daily and annualized volatility figures (2.89% and 55.21%, respectively) reflect the thin trading volumes typical of ESM (Enhanced Surveillance Measure) bucket companies, where institutional activity remains limited. Still, the company’s movement to the main boards of the NSE and BSE in May 2023 marked a credibility milestone, and the recent order inflow could shift investor perceptions in its favor.

What Is Market Sentiment Around PIGL Now?

Investor sentiment has turned cautiously optimistic, with the latest Udaipur order acting as a reaffirmation of PIGL’s operational reliability. Although the company is currently in the ESM-1 category due to low unique PAN-based investor activity, back-to-back orders may encourage improved liquidity and eventual institutional interest if execution continues smoothly.

There was no spike in promoter holding or block trades recorded in the June 5 trading session, but several forum-based investor communities flagged the stock as a potential re-rating candidate. The price movement aligned closely with the day’s VWAP of ₹165.19, suggesting deliberate buying activity at higher levels.

What Does the Order Pipeline Say About Future Growth?

The ₹52.43 crore contract portfolio for the Udaipur project reflects the company’s largest airport engagement to date in a single location. The company has not yet provided guidance on future revenue recognition timelines for these orders, but given the six-month execution timeline, significant revenue booking is expected to occur across Q2 and Q3 of FY26.

With regional airports across Rajasthan, Madhya Pradesh, and Gujarat undergoing upgradation or electrification, PIGL is expected to benefit from upcoming tenders, particularly given its history with Nyati Engineering & Construction and its status as a preferred partner for complex airport assignments.

Additionally, Power & Instrumentation (Gujarat) Limited has signaled a commitment to deepening its presence in public-sector infrastructure, particularly where hybrid or smart-grid solutions are part of the contract. These ambitions will likely translate into bids for urban electrification projects, digital substation upgrades, and turnkey airport facility integrations across India.

Is Power & Instrumentation (Gujarat) Limited an Infra Stock to Watch in FY26?

With airport electrification emerging as a niche, high-value EPC segment—and PIGL already an established performer—market participants are beginning to view the company as more than just a small-cap electricals player. Its growing specialization in airport infrastructure, combined with its consistent contract execution record, positions it for further order wins in a sector where reputation and delivery history are critical selection parameters.

While the firm’s current classification under the BE series and ESM-1 status could restrict immediate institutional participation, a few successful quarterly results or a shareholding pattern update showing wider base accumulation might trigger renewed interest.

The company’s resilience, as demonstrated through its FY25 financials, and its success in landing high-precision projects like Udaipur Terminal, underscore a strategic shift—one that could help PIGL graduate into mid-cap territory over the next two fiscal years.