Vedanta awards AESL with a ₹865 crore contract, causing a 7.49% increase in AESL shares
In a significant development, Asian Energy Services Limited (AESL) has secured an ₹865 crore integrated service contract from Vedanta Limited, marking a significant stride for the company in India's upstream oil and gas sector. This contract, which includes Goods and Services Tax (GST) in the total contract value, is scheduled to be executed over a period of 57 months.
The contract, which strengthens AESL’s core focus on integrated Operations and Maintenance (O&M), is a testament to the trust and long-standing relationship between AESL and Vedanta. According to Kapil Garg, Managing Director of AESL, this contract underscores the trust built through dependable service and operational excellence with their long-standing client.
The project is expected to support India’s upstream oil and gas sector with increased efficiency, manpower deployment, and local economic benefits, particularly in Rajasthan. AESL will be responsible for production uptime targets, regulatory compliance, and efficiency improvements at Vedanta's operational sites.
The impact of the contract has been positive on AESL’s market performance. On the day of the announcement, AESL's stock price surged by about 13.6%, highlighting investor confidence in AESL’s growth prospects and operational capabilities.
The contract also adds significantly to AESL's order book, providing revenue visibility for the next five years. With this award, AESL also diversifies its business verticals following its acquisition by Oilmax Energy Private Limited, aiming to capture more value along the upstream oil and gas value chain for long-term value creation.
Looking ahead, the integrated service contract is expected to solidify AESL’s position as a preferred energy services provider. The long-term nature of the contract gives AESL stability and revenue visibility, reinforcing the company’s strategic focus on O&M and upstream oil and gas services. The partnership with Vedanta, a major mining and energy conglomerate, further enhances AESL’s credibility and market positioning for future contracts in the sector.
As of July 29, 2025, AESL's free float market capitalisation stands at ₹548.78 crore. Trading volumes for AESL shares on July 29 reached 7.56 lakh shares worth ₹24.06 crore. AESL shares opened at ₹303.40 and touched a high of ₹329.80 during the trading session.
In summary:
| Aspect | Details | |--------------------------|-------------------------------------------------------------| | Contract Value | ₹865 crore (including GST) | | Client | Vedanta Limited | | Contract Duration | 57 months | | Scope | Integrated Service Contract: Field Development and O&M | | Strategic Impact | Strengthens AESL’s core O&M business; boosts local economy | | Market Reaction | Stock jumped ~13.6% post-announcement | | Future Outlook | Provides revenue visibility and reinforces AESL’s market leadership in energy services |
This deal highlights AESL’s growing footprint in India’s upstream oil and gas sector and its capability as a trusted partner for large-scale integrated services with a strong focus on operational efficiency and safety.
- The secured contract worth ₹865 crore from Vedanta Limited has boosted AESL's market performance, with the company's stock price surging by approximately 13.6% on the day of the announcement.
- The long-term integrated service contract, scheduled to be carried out over 57 months, adds significantly to AESL's order book, providing revenue visibility for the next five years.
- With this award, AESL not only diversifies its business verticals but also seeks to capitalize on more value along the upstream oil and gas value chain for long-term value creation.
