Ing-Grad Rises by 2.2%: Project Portfolio Reaches 323 Million Euros

Author: Tomislav Pili

October 7, 2025

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The value of shares of the construction company Ing-Grad rose by 2.2% to 56.2 euros on the Zagreb Stock Exchange during the morning trading session on Tuesday, which can be attributed to the announcement that this year’s portfolio of awarded contracts has increased to 323 million euros. Ing-Grad announced on Tuesday that the day before, on October 6, an executive decision was made by the State Commission for Control of Public Procurement Procedures (DKOM) rejecting the appeal of the Serbian company Modulor. This pertains to the project for the comprehensive renovation of the earthquake-damaged building of the University of Zagreb and the Faculty of Law, with a contract value of 34.8 million euros including VAT.

Open Doors

The Belgrade-based Modulor – which last year received a contract worth 8.3 million euros for the comprehensive renovation of the Stubički Golubovec castle – appealed to DKOM because the University of Zagreb rejected its offer for two reasons. The contracting authority stated that the proposed chief engineer of the construction site does not have sufficient references to lead the renovation of a building that is a protected cultural asset and was damaged in the earthquake. Specifically, Modulor’s expert led the renovation of the Dubrovnik hotel Imperial, built in 1895, in 2005, which was damaged in a fire caused by shelling during the aggression against Dubrovnik. The second objection from the University related to a modified version of the cost estimate.

Since its IPO in March, this is already the fourth major contract awarded to Ing-Grad. In early September, the company reported that an executive decision was made regarding the selection of the contractor for the Zagreb cinema Europa. The contracting authority is the City of Zagreb, and the value of this contract is 11.1 million euros including VAT. A month earlier, the appeal process was completed, which opened the doors for Ing-Grad to design and construct the National Children’s Hospital in Zagreb. Ing-Grad is participating in this project, valued at 237.5 million euros, as part of a consortium that also includes construction companies Kamgrad and Radnik, as well as the architectural firm ZDL arhitekti.

The Turkish-Romanian consortium led by CCN Altyapi Yatirimlari ve Inşaat appealed against the Ministry of Health’s decision on the selection. The Turks claimed that their offer should have been equally scored, despite Turkey not being a signatory to the international agreement with the EU that guarantees equal and reciprocal access to public procurement.

They also objected that Kamgrad and Ing-Grad did not prove that they had prior experience in constructing a public facility. In this context, they argued that the construction of a central kitchen and service buildings, as well as a multi-storey parking lot as part of the construction of the children’s hospital and the gynecology and obstetrics clinic of KBC Rijeka, should not have been considered. DKOM rejected the complainants’ arguments.

Surge in Revenue and Profit

Ing-Grad received another contract for health infrastructure in early May – for works on the central complex, specifically the expansion of the Dr. Fran Mihaljević Hospital for Infectious Diseases. In this contract valued at 40 million euros, Ing-Grad is the lead contractor, with the Krapina-based company Jedinstvo as its partner. In total, these four contracts are worth 323.3 million euros and will significantly increase the company’s revenues in the coming years. In the first half of this year, Ing-Grad achieved revenues of 79.1 million euros, which is a significant 62% increase compared to the previous year. On the other hand, expenses reached 65.7 million euros and grew faster than revenues, by 63%.

In its semi-annual report, the company explains this increase in expenses by the growth in business volume, but also by the impact of inflation, particularly in terms of higher labor costs. Nevertheless, a satisfactory level of profitability has been maintained, with EBITDA in the first six months amounting to 14.5 million euros, which is 51% higher than in the same period last year. Net profit increased by 55% to 11.3 million euros.

Overall, investors who participated in the IPO have reasons to be satisfied for now. Compared to the initial offering price of 46 euros, the stock is currently worth 22% more. In comparison to the entire market, since Ing-Grad’s listing, the CROBEX index has strengthened by 15%.