International EPC Railway Contract
Afcons Forays into Europe with Major Croatia Railway Project
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Afcons Infrastructure Limited has received intimation from the client regarding selection as the most suitable bidder for rehabilitation and construction of a railway line in Croatia. The project is valued at approximately €677.07 million (around ₹7,544 crore), making it Afcons’ largest international order to date.
PRICE-SENSITIVE TRIGGER
Event: Selection as most suitable bidder for Croatia railway infrastructure project
Type: International EPC Railway Contract
Impact: Positive
Immediate Effect: The project significantly strengthens Afcons’ international order book and marks the company’s strategic entry into Europe’s infrastructure market
Key Metrics:
- Project value:
- €677.07 million
- Approximate INR equivalent:
- ₹7,544 crore
- Geography:
- Croatia, Europe
- Project type:
- Railway rehabilitation and second-track construction
- Scope includes:
- Civil works
- Overhead electrification
- Signalling
- Telecommunication systems
- Significance:
- Largest international order secured by Afcons till date
Highlight:
- Afcons secured its largest-ever international project valued at approximately ₹7,544 crore.
What Happened ?
Afcons Infrastructure Limited announced that it has received intimation from the client selecting the company as the most suitable bidder for rehabilitation and construction of a railway line in Croatia.
The project involves reconstruction of the existing track and construction of a second railway track on the Dugo Selo–Novska railway line in the Republic of Croatia.
Afcons had earlier been declared the Lowest Bidder (L1) for the project in July 2025. The latest communication indicates client approval to proceed with acceptance of Afcons’ bid.
key highlights
Croatia Railway EPC Project:
- Project location:
- Republic of Croatia
- Railway section:
- Dugo Selo – Novska railway line
- Scope of work includes:
- Reconstruction of existing railway track
- Construction of second railway track
- Overhead electrification
- Signalling systems
- Telecommunication works
- Project value:
- €677.07 million excluding taxes
- Approximate rupee value:
- ₹7,544 crore
- The project marks:
- Afcons’ entry into Europe
- Management highlighted:
- Capability to execute complex large-scale global infrastructure projects
- The contract strengthens:
- Afcons’ international infrastructure positioning
Note:
- This is a strategically important international breakthrough project for Afcons and significantly expands the company’s global EPC footprint into Europe.
Risk Analysis
Key Risks
- Final contract execution and approvals may still be pending.
- International EPC projects carry currency fluctuation risks.
- Execution complexities in foreign geographies may impact margins.
- Regulatory and compliance requirements in Europe can increase project costs.
- Delays in approvals or project mobilization may affect timelines.
Worst Case Scenario
- Any delay in final contract award, execution bottlenecks, or cost overruns could affect profitability and working capital requirements for the project.
Risk Level: Medium
Company Commentary
- Management stated the project marks a significant milestone in Afcons’ global journey.
- Afcons highlighted the order as its entry into Europe.
- The company emphasized its capability in delivering complex large-scale infrastructure projects globally.
- Management stated the project contributes to modernization of railway infrastructure in a European country.
- Afcons reiterated its commitment toward sustainable infrastructure development and long-term stakeholder value creation.
Official Exchange Filing: Afcons Infrastructure Limited