G R Infraprojects Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

G R Infraproject reported a robust 15% YoY consolidated revenue growth in Q2 FY26, driven by project execution and new order wins in power transmission and highways. The company demonstrated strong financial discipline by repaying ₹262 crores of debt and significantly improving working capital days. However, standalone EBITDA margins saw a slight dip, and future revenue growth guidance for H2 FY26 was tempered due to ongoing project and bidding delays, particularly for key HAM projects.

Highlights

  • Consolidated revenue increased by almost 15% year-on-year to ₹1,602 crores in Q2 FY26.

  • Repaid debt of ₹262 crores, resulting in an improved standalone debt-equity ratio of 0.03x, one of the best in the sector.

  • Won one power transmission and distribution project of ₹3,136 crores and one highway project of ₹246 crores.

  • Working capital days improved significantly to 98 days at the end of September '25, down from 170 days at the end of fiscal 2025.

  • Standalone PAT increased to ₹131 crores in Q2 FY26 from ₹115 crores in Q2 FY25.

Concerns

  • Standalone EBITDA margin declined to 9.76% in Q2 FY26 from 10.39% in Q2 FY25, primarily due to a one-time claim income recognized in the prior year.

  • Consolidated PAT decreased to ₹189.5 crores in Q2 FY26 from ₹193.5 crores in Q2 FY25.

  • Revenue growth for H2 FY26 is projected at a lower 5-10% due to delays in project appointed dates and bidding.

  • The ₹3,700 crores Agra DBFOT project's appointment date is still awaiting, and two MSRDC projects (Nagpur-Chandrapur Package 1 and Pune-Ring Road Package E6) face potential re-bidding or cancellation due to technical issues.

Key financials

  1. Consolidated Revenue from Operations ₹1,602 Cr +14.9%YoY
  2. Standalone Revenue from Operations ₹1,234 Cr +9.3%YoY
  3. Standalone EBITDA Margin 9.8% -6.1%YoY
  4. Standalone PAT ₹131 Cr +13.9%YoY
  5. Consolidated PAT ₹189.5 Cr -2.1%YoY
  6. Working Capital Days 98 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

₹21,000 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹3,382 Cr

Composition

  • HAM debtors (contract type) ₹1,525 Cr

Pipeline

L1 awaiting loa

Two road projects are L1, one DBFOT project awaiting appointment date, and other projects to be opened.

Cancellations & deferrals

  • deferred: Agra project appointment date is awaiting.
  • deferred: Two MSRDC projects (Nagpur-Chandrapur Package 1 and Pune-Ring Road Package E6) might be re-bid or cancelled due to technical issues.
Management is hopeful of achieving order inflow targets despite bidding delays, especially in highways, and is diversifying into other segments like power transmission and hydro/tunnels.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹18.5 Cr this quarter · ₹100 Cr (FY26) planned Cut — FY26 capex won't be in the range of INR100 crores
    During the quarter, company has made addition to the fixed asset amounted to INR18.5 crores... The entire year capex won't be in the range of INR100 crores. So far, we have put in almost INR50 crores.
  • Debt Debt disclosed
    • Repayment Repaid debt of INR262 crores, resulting in improved debt-equity ratio of 0.03 (standalone). ₹262 Cr
    Our standalone net worth stood at almost INR8,239 crores at the end of September '25 which was INR7,888 crores at the end of fiscal 2025. Our stand-alone borrowing outstanding at the end of fiscal 2025 sorry, at September 2025 is INR240 crores with debt to equity of 0.03x. Our consolidated borrowing outstanding at the end of September 2025 is INR5,995 crores with debt-to-equity ratio of 0.67x at consol level.
  • Liquidity Liquidity disclosed Promoter contribution required for operational or under construction HAM/BOT or power transmission projects is INR3,205 crores, with INR500 crores expected in H2 FY26. InvIT income of INR93 crores received in H1 FY26.
    Balance promoter contribution required to be made for our operational or under construction HAM BOT or power transmission project is INR3,205 crores, which we are expecting contribution of almost INR500 crores in the second half of the fiscal 2026... So far, I think we have received total income from InvIT is around checking. INR320 crores for the first half. Anand Rathi: INR93 crores in first half and INR320 crores overall total.

Guidance & targets

Revenue

  • Revenue Growth Revenue · H2 FY26 · Medium confidence 5-10%
    We will grow 5-10% in the revenue in the second half.

    — Ajendra Agarwal

  • Revenue Growth Revenue · FY26 · Medium confidence 7-8%

    Previously 10% → 7-8%

    So, maybe we will not be going, let us say, 10%. We'll still go for around 8% to 7%.

    — Ajendra Agarwal

  • Revenue Growth Revenue · FY27 · Medium confidence at least 15%
    But going forward maybe in FY 2027, depending on what kind of order we are getting in the current year, we will be having at least 15% kind of growth.

    — Ajendra Agarwal

  • Revenue Growth Revenue · FY28 · Medium confidence double-digit growth
    So, in FY 2028, certainly we will be having double-digit growth.

    — Ajendra Agarwal

  • Transmission Sector Revenue Revenue · going forward · Medium confidence ₹2,000-3,000 crores
    So our revenue would be basically going forward, I will be having at least INR2,000 to INR3,000 crores of the revenue coming in from transmission sector, right.

    — Ajendra Agarwal

Margin

  • EBITDA Margin Margin · FY26 · Medium confidence 11-13%
    But otherwise, I believe that if it is half percent income, then maybe 13% or maybe 11% that would be the range.

    — Ajendra Agarwal

Order Inflow

  • New Project Wins Order Inflow · FY26 · Medium confidence ₹20,000-25,000 crores
    What we are targeting for the current year, what we have target INR20,000 to INR25,000 crores new project we will try to win.

    — Ajendra Agarwal

  • New Project Wins Order Inflow · FY27 · Medium confidence north of ₹25,000 crores
    let's say, even if current year we are getting INR25,000 crores or INR20,000 crores, then also next year we will be targeting at least north of INR25,000 crores.

    — Ajendra Agarwal

  • Highway Projects Order Inflow · FY26 · Medium confidence ₹10,000-11,000 crores
    And we are targeting INR10,000 to INR11,000 crores of highway projects.

    — Anand Rathi

  • Railway/Metro Projects Order Inflow · FY26 · Medium confidence ₹2,000-3,000 crores
    In railway, metro, there also we are targeting INR2,000 to INR3,000 crores of work.

    — Anand Rathi

  • Oil & Gas EPC (yearly revenue contribution) Order Inflow · next 3 years · Medium confidence ₹1,000-1,500 crores
    we are targeting an yearly revenue contribution of INR1,000 crores to INR1,500 crores over the next three years.

    — Ajendra Agarwal

  • Transmission Sector Order Inflow (excluding material) Order Inflow · next 2-3 years · Medium confidence ₹5,000-8,000 crores
    S for next two, three years we will be targeting INR5,000 to INR8,000 crores of the orders from transmission, or when I am saying INR5,000 to INR8,000 that means excluding that material at least.

    — Ajendra Agarwal

Capital Allocation

  • Promoter Equity Contribution Capital Allocation · H2 FY26 · Medium confidence ₹400-500 crores
    Balance promoter contribution required to be made for our operational or under construction HAM BOT or power transmission project is INR3,205 crores, which we are expecting contribution of almost INR500 crores in the second half of the fiscal 2026.

    — Anand Rathi

  • Total Outstanding Equity Infusion Capital Allocation · next 3 years · High confidence ₹3,200 crores
    The total outstanding equity which has to be infused so far is now INR3,200 crores over the next three years. So, maybe on yearly basis, it would be around INR1,000 crores.

    — Anand Rathi

InvIT

  • InvIT Distribution Range InvIT · FY26 · Medium confidence 11-12%
    Generally, what guidance we have got from the InvIT team is that overall distribution would be in the range of 11%, 12%, right.

    — Ajendra Agarwal

  • Total Income from InvIT InvIT · FY26 · High confidence ₹225-230 crores
    So, depending on, I mean, because our investment is around INR2,000 crores, so we can reasonably expect that INR225 crores or INR230 crores would be the total income from InvIT.

    — Ajendra Agarwal

Oil & Gas EPC

  • Initial Project Margin Oil & Gas EPC · near term · Medium confidence 8-10%
    No, no we have started the team building exercise so the margin is maybe 1 or 2 projects we can start with lower 8-10% and then probably we will target 15% kind of margin.

    — Ajendra Agarwal

  • Target Project Margin Oil & Gas EPC · medium term · Medium confidence 15%

    — Ajendra Agarwal

What to watch in Q3 FY26

Agra Project Appointment Date

next quarter (within 1-2 months)
Current Awaiting appointment date
Target Appointment date received

Why it matters

Conversion of this ₹3,700 crores DBFOT project is crucial for order book execution and future revenue.

The Agra project should be appointed within the next 1-2 months, that is, in the next quarter.

Risks & concerns

  • Project Delays (Appointed Date & Bidding)

    high

    Delays in appointed dates for projects like Agra (₹3,700 crores) and overall bidding delays are impacting revenue growth expectations for H2 FY26.

    Management acknowledged

  • Potential Cancellation/Re-bidding of MSRDC Projects

    medium

    Two MSRDC projects (Nagpur-Chandrapur Package 1 and Pune-Ring Road Package E6) are under discussion for re-bidding or cancellation due to technical issues, creating uncertainty for future order book conversion.

    Management acknowledged

  • Government Infrastructure Spending Pace

    medium

    Concerns raised about the government's infrastructure spending pace, with management noting issues related to quality, restructuring, and land acquisition affecting project awards.

    Analyst acknowledged

  • EBITDA Margin Compression

    low

    Standalone EBITDA margin declined to 9.76% from 10.39% YoY, primarily due to a one-time claim income in the previous year, but management expects 11-13% going forward.

    Management acknowledged

Q&A highlights

4 direct
Revenue and Order Inflow Guidance for FY26 Partial
We will grow 5-10% in the revenue in the second half. We have not been able to start any projects since some time, so the growth that was expected due to that has not happened. We have done the expected execution on the projects that have started. But due to the delay in the appointed date from the government side, there is a slight delay.

Analyst questioned the feasibility of achieving 10-15% growth given H1 performance, leading management to revise H2 and full-year revenue growth expectations downwards due to project delays.

Asked by Shravan Shah

Status of L1 and Awaiting LOA Projects Direct
The Agra project should be appointed within the next 1-2 months, that is, in the next quarter. And as far as the question is concerned, there is a discussion on these two projects, the state projects of the Maharashtra government, whether these projects will be in re-bidding or will be awarded. There is still no clarity from the government.

Clarified the status of key projects, highlighting delays in the Agra project and potential re-bidding/cancellation risks for MSRDC projects, impacting future revenue visibility.

Asked by Abhinav

Oil & Gas EPC Business Strategy and Targets Direct
Now we are talking about EPC business -- talking three year business. Now in three years it will come to this level. ... Yes. Pipeline and the EPC business, we are working in that. Platform, piling.

Provided details on the new diversification strategy into Oil & Gas EPC, including the type of work targeted and the expected revenue contribution over the next three years, indicating a new growth avenue.

Asked by Mohit Kumar

InvIT Income and Future Expectations Direct
So far, I think we have received total income from InvIT is around just hold on. I'm just checking. INR320 crores for the first half. Anand Rathi: INR93 crores in first half and INR320 crores overall total.

Clarified the actual income received from InvIT in H1 FY26 and provided guidance for the full year, which is a recurring income stream for the company.

Asked by Sudeep

Accounting for Material Procurement in Transmission Projects Direct
No, that is not the revenue. That would be kind of expenses which will be incurring in the SPV directly. That won't be revenue of the SPV, right. See, what happens, in transmission a major part is basically material procurement. This is equipment. We have to take transformer and all that. So, that is not generally we are counting in the revenue.

Addressed a crucial accounting clarification regarding how material procurement in transmission projects is treated, distinguishing between EPC revenue and SPV-level expenses, which impacts reported revenue figures.

Asked by Parikshit Kandpal

Government's Infrastructure Focus and Ordering Slowdown Partial
The way government has done the expenditure on Infra. So initially it was very good, but in middle there were issues of the quality because of that restructuring is going on and land acquisition issues is also there in that also working is going on, project quality execution the delivery of quality some issues came over there, so in that also working is going on.

Analyst raised concerns about a slowdown in government infrastructure ordering, particularly in NHAI, and management acknowledged issues related to quality, restructuring, and land acquisition, indicating potential headwinds for the sector.

Asked by Parikshit

2 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

G R Infraproject reported a consolidated revenue from operations of ₹1,602 crores in Q2 FY26, marking a 14.92% year-on-year increase. Standalone revenue grew by 9.31% to ₹1,234 crores. While standalone PAT saw a healthy rise to ₹131 crores from ₹115 crores, consolidated PAT slightly declined to ₹189.5 crores from ₹193.5 crores. The standalone EBITDA margin was 9.76%, a decrease from 10.39% in the prior year, primarily attributed to a one-time claim income recognized in Q2 FY25.

Order Book and Inflow Strategy

The company's order book stood at approximately ₹21,000 crores as of September 30, 2025. New order inflows in Q2 FY26 totaled ₹3,382 crores, including a significant ₹3,136 crores power transmission project and a ₹246 crores highway project. Management targets an annual order inflow of ₹20,000-25,000 crores for FY26, with a focus on highways (₹10,000-11,000 crores) and railway/metro projects (₹2,000-3,000 crores). The pipeline includes ₹4,300 crores in L1 road projects and another ₹4,300 crores in projects awaiting opening, alongside a ₹3,700 crores DBFOT project awaiting its appointed date.

Diversification into Oil & Gas EPC

G R Infraproject is actively evaluating opportunities in the EPC business of the oil and gas sector as part of its diversification strategy. The company aims for an annual revenue contribution of ₹1,000-1,500 crores from this segment over the next three years. Initial project margins are expected to be in the 8-10% range, with a target to reach 15% as experience grows. The company is building an internal team to support this new venture, focusing on pipeline, platform, and piling work.

Capital Structure and Working Capital Management

The company demonstrated strong capital management by repaying ₹262 crores of debt, leading to a standalone debt-equity ratio of 0.03x and a consolidated ratio of 0.67x. Working capital days improved significantly to 98 days at the end of September '25, down from 170 days at the end of fiscal 2025, primarily due to a decrease in SPV debtors and unbilled revenue. Total promoter equity contribution required for HAM/BOT and power transmission projects is ₹3,205 crores, with ₹500 crores expected in H2 FY26.

Sector Outlook and Challenges

Management noted that while the government's guidelines for project awards are robust, bidding has been delayed, impacting revenue growth. Issues such as land acquisition, project quality execution, and restructuring within the NHAI are contributing to these delays. Despite these challenges, the company remains optimistic about opportunities in power transmission, railways (metro), and highways in the coming quarters, expecting a pick-up in bidding activity by Q4 FY26.

Leadership Transition and Corporate Developments

Vinod Kumar Agarwal, Chairman and Whole-time Director, has resigned due to health reasons, marking a significant transition for the company he co-founded in 1995. The company acknowledged his pivotal role in its growth and success. G R Infraproject has also moved to its new corporate office named GR1, reflecting its ongoing evolution and growth.

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