G R Infraprojects Limited — Q1 FY26 earnings call

Call held 4 Aug 2025

Management summary

G R Infraprojects reported a mixed Q1 FY26 with a slight decline in revenue but a significant increase in stand-alone and consolidated PAT. The company maintained a strong order book of INR 23,700 crores and an improved debt-equity ratio of 0.04x. Management provided optimistic guidance for order inflows and revenue growth in FY26 and FY27, while also outlining plans for asset monetization through InvITs and strategic bidding in the highway and other infrastructure sectors.

Highlights

  • Stand-alone PAT increased significantly to INR 1,216 crores in Q1 FY26 from INR 152 crores in Q1 FY25.

  • Consolidated PAT increased to INR 244 crores in Q1 FY26 from INR 156 crores in Q1 FY25.

  • Debt-equity ratio improved to 0.04x, one of the best in the sector, after repaying INR 137 crores of debt.

  • Order book stood at INR 23,700 crores, with INR 4,500 crores in L1 status and INR 7,300 crores in bids yet to be opened.

  • Management expects 10-15% revenue growth for FY26 and 15-20% for FY27, driven by new order inflows.

Concerns

  • Stand-alone revenue from operations decreased by 3.7% YoY to INR 1,826.14 crores in Q1 FY26.

  • Consolidated revenue from operations decreased by 2% YoY to INR 1,988 crores in Q1 FY26.

  • Stand-alone EBITDA margin slightly compressed to 12.65% from 13% YoY.

  • Working capital days increased to 121 days from 117 days at FY25 end, primarily due to inventory for new projects.

Key financials

  1. Revenue (Standalone) ₹1,826.14 Cr -3.7%YoY
  2. Revenue (Consolidated) ₹1,988 Cr -2%YoY
  3. EBITDA Margin (Standalone) 12.7%
  4. EBITDA Margin (Consolidated) 20%
  5. PAT (Standalone) ₹1,216 Cr +699%YoY
  6. PAT (Consolidated) ₹244 Cr +56.4%YoY
  7. Working Capital Days 121 days

What they filed

Q1 FY27: revenue up 32.7%, net profit down 5.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,128 1,501 1,990 1,826 1,234 +9%2,039 +36%2,521 +27%2,423 +33%
EBITDA117 192 348 231 120 +3%205 +7%273 −22%267 +16%
Net profit115 169 371 216 131 +14%232 +37%417 +12%204 −6%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹23,700 Cr

as of 2025-08-04 quantified

Inflow this quarter

₹2,500 Cr

Execution

24 projects of INR15,000 crores approximately under execution.

Pipeline

L1 awaiting loa

3 road projects of INR 4,500 crores approximately are having L1 status. Bids of INR 7,300 crores approximately are yet to be opened (2 highway, 2 railway, 1 power transmission and distribution project). One DBFOT project of INR 3,700 crores approximately is awaiting appointed date. NHAI plans to open bids of INR 340,000 crores in current financial year, with GRIL expecting to bid around INR 2 lakh crores. GRIL's focus pipeline in highway is INR 1.4 lakh crores.

Management expects increased opportunities due to NHAI's large bidding pipeline and new criteria favoring companies with strong balance sheets. While Q1 inflow was INR 2,500 crores, the full-year target is INR 22,000 crores.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹33.3 Cr this quarter · ₹100 Cr (FY26) planned
    During the quarter, the company has made additions to the fixed assets amounting to INR33.3 crores approximately... It is in the range of INR100 crores.
  • Debt Gross ₹5,371 Cr
    • Repayment Repaid debt, improving debt-equity ratio. ₹137 Cr
    The total stand-alone borrowings outstanding at the end of fiscal 2025 is INR364 crores approximately with debt to equity of 0.04x. The total consolidated borrowing outstanding at the end of fiscal 2025 is INR5,371 crores with debt to equity of 0.61x.
  • M&A Indus Infra Trust Divestment · Ongoing

    Transfer completed HAM assets to the trust to monetize and avoid holding assets for a longer period.

    InvIT targets 12-12.5% return yearly (dividend + interest). INR 40 crores received in Q1 FY26.

    So my first question, we transferred 9 HAM assets to Indus Infra Trust. What is the strategy for future monetizations?... See, our strategy is to transfer to trust only as and when the project will be completed, ultimately because we don't want to be or we don't want to hold generally. That's not our, I would say, role to hold those assets for a longer period... InvIT, they are targeting almost 12% kind of return on a yearly basis, which is comprised of dividend and interest... Q1, we have received almost INR40 crores.
  • Liquidity Liquidity disclosed Working capital in days increased to 121 days (June 2025) from 117 days (FY25 end) due to inventory for power transmission, distribution, and roadways projects. Stand-alone trade receivables were INR 1,745.6 crores, including INR 1,583 crores HAM debtors.
    The working capital in days at the end of June 2025 is 121 days as compared to 117 days at the end of fiscal 2025. This increase was primarily on account of increase in inventory days for the power transmission distribution and roadways projects. The trade receivables at the stand-alone basis are INR1,745.6 crores, including INR1,583 crores HAM debtors at the end of June 2025.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 10-15%
    So little I mean, we will be having -- this year, we'll be having growth of 10% at least or maybe 15% would not be that much issue.

    — Ajendra Agarwal

  • FY27 Revenue Growth Revenue · FY27 · Medium confidence 15-20%
    For '27 years, yes, of course, we can be more than 15%. Yes, 20% -- 15% to 20%.

    — Ajendra Agarwal

Margin

  • FY26 Stand-alone EBITDA Margin Margin · FY26 · High confidence 12-13%
    26, we have already mentioned that it would be in the range of 12%, 13%.

    — Ajendra Agarwal

  • FY27 Stand-alone EBITDA Margin Margin · FY27 · Medium confidence 12-13% or 15%
    And for '27, I don't think that there would be any extraordinary shift in the margin metrics. If we are able to get good amount of projects, certainly we can expect and if we are able to get good growth also more than 20%, then certainly our margin would be improved, but otherwise, more or less in the range of 12% to 13% or 15%. That would be the general range.

    — Ajendra Agarwal

Order Inflow

  • FY26 Order Inflow Target Order Inflow · FY26 · High confidence INR 22,000 crores
    See, current year, we have targeted for order inflow of around INR22,000 crores.

    — Ajendra Agarwal

  • FY27 Order Inflow Target Order Inflow · FY27 · Medium confidence INR 30,000 crores
    And next year, it would be in the range of INR30,000 crores, I mean, depending on the government plan and all that.

    — Ajendra Agarwal

  • FY26 Transmission Order Intake Target Order Inflow · FY26 · High confidence INR 3,000-4,000 crores
    So current year, our order intake from transmission is in the range of INR3,000 crores to INR4,000 crores.

    — Ajendra Agarwal

  • BharatNet Yearly Target Order Inflow · Yearly · Medium confidence INR 1,000-1,500 crores
    And the yearly target, I would say, would be in the range of at least to start with INR1,000 crores to INR1,500 crores.

    — Ajendra Agarwal

InvIT Returns

  • InvIT Annual Return (Dividend + Interest) InvIT Returns · Yearly · High confidence 12-12.5%
    InvIT, they are targeting almost 12% kind of return on a yearly basis, which is comprised of dividend and interest.

    — Ajendra Agarwal

Equity Investment

  • FY26 Equity Investment for HAM/BoT Equity Investment · FY26 · High confidence INR 600-800 crores
    We are expecting another INR600 crores, INR700 crores, INR800 crores in the current year and the balance in the next 2 years.

    — Ajendra Agarwal

  • Yearly Equity Investment for HAM/BoT Equity Investment · Yearly · Medium confidence INR 1,000 crores
    So again, in the range of INR1,000-odd crores on a yearly basis.

    — Ajendra Agarwal

Capex

  • FY26 Capex Capex · FY26 · High confidence INR 100 crores
    It is in the range of INR100 crores.

    — Anand Rathi

Order Pipeline

  • GRIL's Focus Pipeline in Highway Order Pipeline · Current FY · High confidence INR 1.4 lakh crores
    Out of the total INR3.4 lakh crores of the highway, I consider my focus pipeline to be of INR1.4 lakh crores.

    — Ajendra Agarwal

What to watch in Q2 FY26

Agra Gwalior DBFOT Project Execution Start

November/December 2025
Current Land acquisition 98-99% complete, financial closure expected in August 2025.
Target Execution commencement.

Why it matters

Timely execution of this large project is crucial for revenue growth and order book conversion.

And we are expecting financial closure will be getting in the current month and probably we'll be able to start execution on this project maybe in the month of November or December, right?

Risks & concerns

  • Land Acquisition Delays for Projects

    medium

    Land acquisition is not 100% complete for all projects, leading to potential delays, though government efforts to secure land pre-bidding are expected to improve this.

    Management acknowledged

  • Contingent Liabilities from InvIT Transfers

    medium

    Potential for project value revision and compensation adjustments due to change of scope or descoping by NHAI for assets transferred to InvITs.

    Management acknowledged

  • Monsoon Impact on Execution

    low

    Early monsoon started, affecting Q1 execution, but not expected to significantly impact full-year growth.

    Management acknowledged

  • Increase in Working Capital Days

    low

    Working capital days increased to 121 from 117 due to higher inventory for power transmission, distribution, and roadways projects.

    Management acknowledged

Q&A highlights

7 direct
NHAI Bidding Criteria & Competition Impact Direct
the new criteria, those whose balance sheet is good, their expectation, hit rate should be good... in the coming time, once the bidding starts, it will definitely be a good opportunity for the sector.

Analyst questioned the impact of new bidding rules on competition and GRIL's order inflow, to which management responded with optimism for companies with strong balance sheets.

Asked by Abhinav

Q1 Order Inflow Breakdown Direct
Out of this INR22,000 crores, so far, we have received INR2,500 crores, including...

Clarification on the actual order inflow for the quarter against the full-year target, resolving a potential discrepancy.

Asked by Abhinav

Agra Gwalior DBFOT Project Progress and Land Acquisition Direct
land acquisition almost completed. It is more than 98% or 99% land acquisition over the year, right? And we are expecting financial closure will be getting in the current month and probably we'll be able to start execution on this project maybe in the month of November or December, right?

Provided specific timelines for financial closure and execution start for a key project, addressing concerns about delays.

Asked by Mohit Kumar

Future Revenue Growth & Monsoon Impact Direct
we'll be having -- this year, we'll be having growth of 10% at least or maybe 15% would not be that much issue... all the projects are now under operations, right? They all are under construction. So it gives us some confidence that we'll be getting more than 10% kind of growth for the current year.

Management provided revenue growth guidance for FY26 despite Q1 monsoon impact, citing confidence from project execution.

Asked by Mohit Kumar

InvIT Monetization Strategy & Contingent Liabilities Partial
contingent liability is what we have seen in the past, sometimes because of change of scope, because the project is not complete on even if we are getting COD... So to that extent, that project value or the project value may be revised and my compensation accordingly will be get revision, maybe on higher side or maybe on lower side.

Addressed the potential risks and complexities associated with asset transfers to InvITs, including project value revisions due to scope changes.

Asked by Balasubramanian

Margin Sustainability with New Bidding Rules Direct
that is quite certain that the competition would be coming down, right, because of that net worth criteria or technical criteria, which they have introduced... we'll be able to get a decent share of those projects, which would be bidded in the current year on decent margin.

Management explained how new qualification criteria are expected to reduce competition, leading to better, sustainable margins in future bids.

Asked by Balasubramanian

Equity Commitment & Investment Plan Direct
our outstanding equity commitment is around INR2,700 crores, INR2,600 crores. And current year we have almost invested so far INR300crores. We are expecting another INR600 crores, INR700 crores, INR800 crores in the current year and the balance in the next 2 years. So again, in the range of INR1,000-odd crores on a yearly basis.

Provided clear figures for outstanding equity commitments and planned investments for HAM/BoT projects for the current and upcoming years.

Asked by Shailly Jain

T&D Segment Growth & Third-Party Orders Direct
So far, I mean, our target is to basically go more captive only because the capacity so far we have built is, I think, would be sufficient enough... if we have to go outside our captive project. So idea is to either -- let's say, if we are getting more projects, we can target even INR5,000 crores of TBCB projects or transmission project, but we'll like to do in-house, I mean, for our own project.

Management clarified its strategy for the T&D segment, emphasizing a focus on captive projects but openness to third-party orders if capacity allows.

Asked by Parikshit Kandpal

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

GR Infraprojects reported a mixed Q1 FY26. Stand-alone revenue from operations decreased by 3.7% year-over-year to INR 1,826.14 crores, while consolidated revenue saw a 2% decline to INR 1,988 crores. Despite the revenue dip, stand-alone PAT surged to INR 1,216 crores from INR 152 crores in the prior year, and consolidated PAT increased to INR 244 crores from INR 156 crores. Stand-alone EBITDA margin was 12.65%, slightly down from 13%, but consolidated EBITDA margin improved to 20% from 18%.

Robust Order Book and Pipeline

As of the call date, the company's order book stood at approximately INR 23,700 crores, with 24 projects worth INR 15,000 crores under execution. The company also holds L1 status for 3 road projects totaling INR 4,500 crores and has bids worth INR 7,300 crores yet to be opened across highway, railway, and power transmission sectors. Management targets an order inflow of INR 22,000 crores for FY26 and INR 30,000 crores for FY27, with INR 2,500 crores already received in Q1 FY26.

Debt Management and Capital Allocation

The company repaid INR 137 crores of debt in Q1 FY26, resulting in an improved stand-alone debt-equity ratio of 0.04x, which is among the best in the sector. Consolidated debt-equity ratio stood at 0.61x at FY25 end. The outstanding equity commitment for HAM/BoT projects is INR 2,600-2,700 crores, with an expected INR 600-800 crores investment in FY26 and approximately INR 1,000 crores annually. The planned capex for FY26 is INR 100 crores, with INR 33.3 crores spent in Q1.

Asset Monetization and InvIT Strategy

GR Infraprojects continues its strategy of transferring completed HAM assets to the Indus Infra Trust, aiming for a 12-12.5% annual return (dividend + interest). The company received approximately INR 40 crores from InvIT in Q1 FY26. Management acknowledges potential contingent liabilities from scope changes or descoping by NHAI that could revise project values during transfer, but the overall strategy is to monetize assets post-completion.

Industry Outlook and Bidding Strategy

Management anticipates an enhanced pace of bids in the infrastructure sector, with NHAI planning to open bids worth INR 3.4 lakh crores in the current financial year. The company expects to bid around INR 2 lakh crores of this pipeline, focusing on INR 1.4 lakh crores in the highway sector. New, tighter bidding criteria are expected to reduce competition, allowing GRIL to secure projects with decent, sustainable margins, though immediate high margin expansion is not anticipated.

Project Execution and Land Acquisition

The company is actively executing 24 projects. While some projects, like Agra Gwalior DBFOT, have achieved 98-99% land acquisition, land availability remains a project-specific challenge, exacerbated by the monsoon season. Management notes that NHAI is increasingly securing land and clearances before bidding, which should mitigate future delays. Execution for the Agra Gwalior project is expected to commence in November/December 2025, and MSRDC projects by January 2026.

Working Capital and Inventory Management

Working capital days increased to 121 days in Q1 FY26 from 117 days at FY25 end, primarily due to higher inventory levels for power transmission, distribution, and roadways projects. Stand-alone trade receivables stood at INR 1,745.6 crores, including INR 1,583 crores from HAM debtors. Inventory levels increased to INR 606 crores from INR 538 crores at FY25 end, reflecting the ramp-up in new projects.

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