New Delhi, Sept. 15 -- Shares of Afcons Infrastructure surged as much as 7% to Rs.272 on Tuesday, fuelled by upbeat investor sentiment over the potential listing of Tata Sons. The link between the two lies in their ownership structure: promoter group Shapoorji Pallonji holds a 50% stake in Afcons and also owns 18% of Tata Sons.

Afcons boasts a strong track record in the engineering, procurement and construction (EPC) business, with Ebitda margins outperforming Larsen & Toubro's (L&T) projects and manufacturing division. Afcons reported Ebitda margins of 10-11% for FY25 and FY26, compared to L&T's 8.3%. However, high interest expenses absorbed nearly 55% of Afcons's Rs.1,217 crore Ebitda in FY26, escalating further to 69% in Q1FY27. Absol...