New Delhi: RKEC Projects has secured a significant contract worth Rs 197.59 crore from the Maharatna Public Sector Undertaking (PSU), Oil and Natural Gas Corporation (ONGC), for strengthening and revamping the jetty infrastructure at the Nhava Supply Base. The announcement triggered a sharp rally in the company’s shares, which surged 20% to trade at Rs 62.58 on the BSE.
Project Scope and Significance
The contract, awarded by ONGC’s Central Procurement Department in New Delhi, is titled the “Jetty Revamping Project.” Under this project, RKEC Projects will be responsible for:
- Strengthening and repairing the existing jetty infrastructure.
- Enhancing operational efficiency and safety standards at the Nhava Supply Base.
The project is vital for ONGC, India’s largest crude oil and natural gas producer, which accounts for approximately 71% of domestic oil and gas production. Strong marine infrastructure like the Nhava Jetty is crucial for supporting ONGC’s ongoing exploration, production, and supply chain operations.
RKEC Projects specializes in civil and defense construction, handling projects across marine works, buildings, highways, and bridges, making it a key player for such infrastructure assignments.
Read also: ONGC Awards 300 MW ISTS-Connected Solar Project, Boosting India’s Renewable Energy Capacity
Financial and Market Context
The ONGC contract provides a strategic boost for RKEC Projects, especially after recent challenging quarters:
- Q2 FY26 Net Profit: Rs 1.71 crore, down 54.4% from Rs 3.75 crore in Q2 FY25.
- Revenue: Rs 31.03 crore, a decline of 59.6% year-on-year.
Despite the dip in its own financials, this contract is expected to stabilize revenue flows and bolster investor confidence.
Meanwhile, ONGC, where the Government of India holds a 58.89% stake, reported a modest improvement in profitability for Q2 FY26:
- Consolidated Net Profit: Rs 10,785 crore, up 5.4% year-on-year.
- Gross Revenue: Rs 1,57,911 crore, a slight dip of 0.9%.
Interestingly, ONGC’s stock fell marginally by 0.47% to close at Rs 245.75 on the BSE despite its strong earnings, reflecting broader market trends rather than company performance.
About ONGC
Oil and Natural Gas Corporation (ONGC) is India’s leading integrated energy company, responsible for the exploration, development, and production of crude oil and natural gas. As a Maharatna PSU, ONGC plays a strategic role in ensuring India’s energy security, supplying over two-thirds of the country’s domestic oil and gas output. The corporation has a robust infrastructure network, including offshore and onshore rigs, pipelines, and marine terminals like the Nhava Supply Base, which is crucial for maintaining seamless operations in the hydrocarbon sector.
