AIArmee Infotech544951Major contract loss

Bondada EPC project not to be executed; outstanding order book to reduce by Rs. 740.97 crore

ArMee Infotech will not proceed with the Bondada EPC project for NTPC Renewable Energy's Fatehgarh solar project.

By ScoutQuest · Thu 15 Oct 2026, 10:52 PM IST · 2 min read

Order value not to be executed

Rs. 740.97 crore including GST

Outstanding order book reduction

reduced by Rs. 740.97 crore (incl. GST)

Block-wise order value

Rs. 375.18 crore for Block-1 and Rs. 365.79 crore for Block-3

What the update says

ArMee Infotech Limited has informed BSE and NSE that the Bondada EPC Project, awarded by Bondada Engineering Limited, will not be executed. This order formed part of the company's order book as disclosed in its Red Herring Prospectus dated 16 September 2026 and Prospectus dated 28 September 2026.

• The company had accepted the Letters of Award dated June 26, 2026 issued by Bondada Engineering Limited.
• The End Client of the project is NTPC Renewable Energy Limited, which had awarded the main contract to Bondada Engineering; the orders awarded to the company were on a back-to-back basis with that main contract.

What the order covered

• Amended EPC Balance of System (BOS) packages: Supply, Services (inland transportation and transit insurance, installation, civil and allied works and safety compliance) and Operation & Maintenance (three years paid O&M including AMC of specified equipment).
• Block-1 (300 MW AC) and Block-3 (300 MW AC) of the Grid Connected Solar PV Project of NTPC Renewable Energy Limited at Fatehgarh, Rajasthan.
• Aggregate order value of Rs. 740.97 crore inclusive of GST, being Rs. 375.18 crore for Block-1 and Rs. 365.79 crore for Block-3.

Why it is not going ahead

• Subsequent to acceptance of the LOAs, there was a substantial escalation in raw material costs.
• The contract price under the LOAs was firm and fixed with no price escalation payable, so the project became commercially unviable under the originally agreed terms.
• The company communicated the cost escalation to Bondada Engineering and sought revision of the commercial terms; in the absence of such revision, it communicated its inability to proceed with the project under the existing terms.
• The company said the decision was taken after careful commercial evaluation, keeping in view financial prudence, project viability and protection of stakeholders' interests.

Impact on the order book

• The outstanding order book of the company shall stand reduced by the order value of Rs. 740.97 crore (inclusive of GST).
• Other financial implications, if any, shall be appropriately reflected in the company's subsequent disclosures.
• The company stated it remains committed to maintaining financial discipline and pursuing sustainable, commercially viable business opportunities.

In simple terms

The company had won this contract and counted it in its order book. It has now told the exchanges that it will not execute the project, because raw material costs rose sharply while the contract price was fixed. That order value will therefore come off the company's outstanding order book.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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