**AFCONS INFRASTRUCTURE | MARKET BRIEF** Afcons Infrastructure is navigating a significant operational challenge following the termination of a major road project in Gabon. On February 24, 2026, the company formally notified stock exchanges that Société Autoroutière du Gabon (SAG) issued a termination notice for the NR1 National Road contract. The project, valued at approximately **€113.03 million (₹1,210 crore)**, involves the construction and rehabilitation of a **117 km** highway. Despite the termination notice, Afcons reports that **93.47%** of the work was already completed as of December 31, 2025. In fact, the road has been open to public traffic for nearly two years. **Financial Impact & Market Reaction** The stock experienced immediate pressure, closing at **₹308.00** on February 24, a decline of **1.57%**. The shares have touched a 52-week low of **₹302.50**, reflecting a year-on-year drop of over **31%**. A critical point of financial friction is the invocation of performance bonds worth **€17.8 million (₹191 crore)** by the client. Afcons has contested this move and the termination, describing them as inconsistent with contractual terms. The company has already initiated arbitration proceedings under the International Chamber of Commerce (ICC). **Quarterly Performance Metrics** The Gabon dispute coincides with a period of consolidated financial cooling. In its Q3 FY26 results: - Net profit fell **34.8%** year-on-year to **₹97 crore**. - Revenue declined **7.3%** to **₹2,975 crore**. - EBITDA rose **12.3%** to **₹409.5 crore**, with margins expanding to **13.8%**. **Order Book & Outlook** Management maintains that the Gabon issue is project-specific and does not threaten the company’s broader stability. The total order book remains robust at **₹31,543 crore**, providing a book-to-bill ratio of **2.5 times**. The remaining **7%** of the Gabon project is reportedly stalled due to the client's failure to hand over required land. While legal proceedings may be lengthy, the company asserts its operational capability and overall business outlook remain unchanged. [Afcons Infrastructure Contract Dispute](https://www.youtube.com/watch?v=2wW5x0KRWLo) This video provides broader context on the evolving economic and infrastructure partnership between India and African nations as of early 2026. http://googleusercontent.com/youtube_content/0