Desco Infratech lands ₹15 cr gas pipeline order from Sabarmati Gas
Binding LOI for steel gas pipelines in Gujarat; adds to ₹345 cr order pipeline. Counterparty is a JV of GSPC and BPCL.
— 3 earlier stories on Desco Infratech Ltd. →What's new
- Binding LOI from Sabarmati Gas for steel gas pipeline installation in Gujarat.
- Order value of ₹15.06 cr disclosed after earlier L1 status.
- Counterparty is a reputed JV of GSPC and BPCL, reducing execution risk.
Why this matters
At ~9% of market cap, this order significantly boosts visible revenue visibility for the nano-cap. The reputed counterparty adds confidence, and the growing city gas distribution pipeline (₹345 cr) positions Desco for steady execution over the next few quarters.
What we're watching
- Further order wins in the city gas segment.
- Execution timeline and revenue recognition for this project.
- Update on the ₹345 cr order pipeline conversion.
The full read
Desco Infratech has locked in a ₹15.06 cr binding LOI from Sabarmati Gas, a joint venture of GSPC and BPCL, for steel gas pipeline work in Gujarat. The counterparty's pedigree lowers execution risk. This order, roughly 9% of market cap, joins a pipeline of ₹345 cr. The company has also bagged a ₹5.62 cr GAIL Gas order and a ₹3.15 cr remediation job in recent weeks. Profitable and underleveraged. Trailing sales of ₹77 cr a quarter, net profit margin of 13%, and debt-equity of 0.19. The next test is how quickly these wins convert to recognised revenue. If execution stays on track, the order pipeline could start feeding through to earnings this year.
Questions answered
- Who is the counterparty for this order?
- Sabarmati Gas Limited, a joint venture of Gujarat State Petroleum Corporation (GSPC) and Bharat Petroleum Corporation (BPCL). This reduces counterparty risk.
- What work is covered?
- Laying, installation, testing and commissioning of steel gas pipelines for FDODO CNG station connectivity in Gujarat.
- How significant is this order relative to Desco's size?
- The order value of ₹15.06 crore is about 9% of Desco's market cap of ₹165 crore, making it a material win.
- What is the total order pipeline now?
- Desco had an order pipeline of around ₹345 crore as of its latest earnings update. This order adds to that.
- Was this order already known?
- The company had declared L1 status on 18th May 2026, but the actual contract value was undisclosed until the receipt of this binding LOI.
Desco Infratech Ltd.
Latest quarter · Mar 2026
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All notes on DESCO →- 19 Jun 2026 · 10:49 AM IST Desco Infratech lands ₹15 cr gas pipeline order from Sabarmati Gas
- 11d ago Desco Infratech gets its first credit rating from India Ratings
- 25d ago Desco Infratech lands ₹5.62 cr order from GAIL Gas and KP Energy
- 26d ago Desco Infratech lands ₹3.15 cr order for site remediation work