G R Infraprojects Limited — Q4 FY25 earnings call

Call held 16 May 2025

Management summary

G R Infraprojects reported a challenging FY25 with a significant decline in consolidated revenue and PAT, alongside margin compression. However, the company demonstrated strong capital management through debt repayment and asset monetization. A robust order book and ambitious order inflow targets for FY26, coupled with diversification efforts, signal a strategic pivot towards future growth, though competitive pressures and working capital management remain key areas to monitor.

Highlights

  • Debt repayment of INR361 crores in Q4 FY25, leading to an improved standalone debt-equity ratio of 0.07.

  • Transfer of one operational HAM asset to Indus Infra InvIT for INR225.58 crores, generating an exceptional gain.

  • Strong order book of INR24,346 crores at the end of Q4 FY25, providing revenue visibility.

  • Management expressed confidence in achieving good IRR (more than 15%) on BOT projects like Agra-Gwalior.

  • Inventory levels improved, standing at INR538.01 crores at fiscal end 2025 compared to INR767.65 crores in fiscal 2024.

Concerns

  • Consolidated revenue decreased by 17.66% YoY to INR7,394.70 crores in FY25.

  • Group EBITDA margin compressed to 22.13% in FY25 from 23.63% in FY24.

  • Consolidated PAT decreased to INR1,015.40 crores in FY25 from INR1,322.97 crores in FY24.

  • Working capital days increased to 117 days in FY25 from 112 days in FY24, primarily due to an increase in SPV debtors.

  • Instances of underbidding up to 46% persist in the sector, raising concerns about competitive pressure.

Key financials

  1. Consolidated Revenue ₹7,394.7 Cr -17.7%YoY
  2. Consolidated PAT ₹1,015.4 Cr -23.3%YoY
  3. Group EBITDA Margin 22.1%
  4. Consolidated Borrowing ₹4,966.16 Cr
  5. Consolidated Net Worth ₹8,503.2 Cr
  6. Working Capital Days 117 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

₹24,346 Cr

as of 2025-03-31 quantified

Composition

Mix 3 others
  • Under Execution 59%
  • Awaiting Appointed Date 19.7%
  • L1 Status 21.2%

Share of order book by other

Pipeline

other

Bids yet to be opened for 5 railway and 1 highway projects.

Management noted that awarding activities were muted in the first 3 quarters of FY25 but picked up in the last quarter, and expects decent flow in the next financial year.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹39.41 Cr this quarter · ₹100 Cr (FY26) planned
    • Machinery ₹70 Cr
    • Corporate office building ₹40 Cr
    During the quarter, the company has made additions to the fixed assets amounting to INR39.41 crores... 2025 capex in machinery is in the range of INR70 crores, INR80 crores. But then we are building our corporate office as well. So, total capex which has to be including that corporate office building and machinery is around INR135 crores. INR135 crores, INR134 crores. And for next year, we are targeting another INR100 crores, INR125 crores not more than that. For 2026, that would be another in the range of INR40 crores, INR50 crores.
  • Debt Debt disclosed
    • Repayment Debt repayment in Q4 FY25, improving debt-equity ratio to 0.07 (standalone). ₹361 Cr
    During the quarter, the company has repaid the debt of INR361 crores which has resulted in improved debt equity ratio to 0.07 which is one of the best in the sector.
  • M&A Indus Infra InvIT Divestment · Closed · Consideration ₹[object Object] (cash)

    Monetization of operational HAM asset, resulting in exceptional gain.

    Resulting gain shown as an exceptional item in financial statements.

    During the quarter, the company transferred one operational HAM asset to Indus Infra InvIT for a total consideration of INR225.58 crores. The resulting gain on this transaction is shown as an exceptional item in financial statements.
  • Liquidity Cash ₹1,000 Cr Company has almost INR1,000 crores of cash lying as of March, which it intends to utilize for good opportunities including BOT projects.
    As of March also, we are having almost INR1,000 crores of cash lying with us. So we'd like to utilize those cash also.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · Medium confidence Double-digit growth (10-15%)
    We will continue our strategy of diversifying and balancing our portfolio across various markets and sectors and take the company back to double-digit growth in current financial year '26. ... We are expecting growth in double digits in FY26. ... It can be around 15% or 10% to 15% growth, but 25% may be after 6 months probably we will be able to give you more clear guidance on this.

    — Ajendra Agarwal

Profitability

  • EBITDA Margin Profitability · FY26 and FY27 · High confidence Around 13% (12-13%)
    Look, we should still consider the margin as flat. So, there are a lot of things, one is the pressure of our competition, and apart from that, the prices in the market, the way there are escalation issues, we have flat expectations on that. ... Around 13%, my MD sir told you. ... That we can expect, I mean comfortably [12-13% for 2026 and 2027].

    — Ajendra Agarwal, Anand Rathi

  • IRR for BOT projects Profitability · Long-term · High confidence More than 15%
    So, generally, those BOT projects are based on traffic and cost, where we believe that we are quite confident in terms of the cost which we have estimated. And in terms of traffic also, we are quite comfortable. And hence, we believe that we will be able to get good margin, good IRR also on those projects. ... More than 15%.

    — Anand Rathi

  • BharatNet Projects Margin Profitability · Ongoing · High confidence More than 10%
    Margin should be there, it would be more than 10% only.

    — Anand Rathi

Order Inflow

  • Order Booking Order Inflow · FY26 · Medium confidence INR20,000 crores
    And for this, the target of this year's order booking is around INR20,000 crores. In the highway sector, there is INR11,500 crores. In the railway, there is 2,000 crores. In the metro, there is INR1,000 crores In the railway and metro, there is 3,000 crores In the power transmission, there is INR2,000 crores. In the ropeway and hydro and tunnel, there is INR3,500 crores. And in logistics and telecom, there is INR500 crores each. The target is INR20,000 crores for the '26 financial year of inflow.

    — Ajendra Agarwal

Capex

  • Total Capex Capex · FY26 · High confidence INR100-125 crores
    And for next year, we are targeting another INR100 crores, INR125 crores not more than that.

    — Anand Rathi

Equity Contribution

  • Equity Contribution for HAM/BOT Equity Contribution · FY26 · High confidence INR1,000 crores
    The balance promoter contribution required to be made for the operational HAM projects is INR2,875.23 crores of which we are expecting a contribution of INR1,000 crores in the fiscal year 2026. ... For current year, we are targeting INR1,000 crores number. And for next year, again, it would be in the same range INR1,000 crores.

    — Anand Rathi

What to watch in Q1 FY26

Revenue Growth for FY26

FY26
Current Consolidated revenue declined 17.66% in FY25
Target Double-digit growth (10-15%) for FY26

Why it matters

To assess if the company can reverse the FY25 revenue decline and achieve its stated growth target through new order execution.

We will continue our strategy of diversifying and balancing our portfolio across various markets and sectors and take the company back to double-digit growth in current financial year '26. ... We are expecting growth in double digits in FY26.

Risks & concerns

  • Underbidding in the sector

    medium

    Instances of underbidding up to 46% continue to persist, which is concerning and requires close monitoring.

    Management acknowledged

  • Competitive pressure and price escalation

    medium

    Competition and market prices, along with escalation issues, are putting pressure on margins, leading to flat margin expectations.

    Management acknowledged

  • Land acquisition and regulatory approval delays

    medium

    Land acquisition work is still ongoing for some projects (e.g., MSRDC projects), causing delays in receiving appointed dates and project awards.

    Management acknowledged

  • Appointed date delays for L1 projects

    medium

    Some L1 projects remain in that status for 3-6 months, delaying their conversion into awarded projects and execution.

    Management acknowledged

  • Increased working capital days

    medium

    Working capital days increased to 117 days in FY25 from 112 days in FY24, primarily due to an increase in SPV debtors, indicating more capital tied up in projects.

    Management acknowledged

Q&A highlights

7 direct
FY25 Order Inflow (including L1) Direct
It is around INR13,000 crores which we have taken which is including L1.

Clarified the total order inflow for the past fiscal year, including projects where the company was declared L1.

Asked by Shravan Shah

Confidence in FY26 Order Inflow Target of INR20,000 crores Direct
Sir, first of all, if we add the L1 status, it is INR13,000 crores. Second, the activity has started in BOT. If you see in the last quarter, the government has started the BOT project, which has increased its opportunity. Second, the government has also changed the norms and there has been an improvement in the award of the project.

Addressed analyst skepticism regarding the ambitious order inflow target by highlighting increased BOT activity and government initiatives.

Asked by Sarvesh Gupta

Margin Sustainability with Changing Revenue Mix Direct
Historically, if you look at the highway, then the margin was more earlier. Now, the margin that we are expecting in the range of 13% is in every sector. If you look at the EPC business, then there will be no survival on a margin less than this. And in that, there will be some operational leverage as well.

Management explained how they plan to maintain margins despite a shift in revenue mix away from higher-margin highway projects, citing operational leverage and sector-wide margin expectations.

Asked by Sarvesh Gupta

Negative Cash Flow from Operations (CFO) despite Profit Partial
See, cash flow from operating activity generally, let's say, I don't think it would be minus INR2000 crores. I think in terms of number, we have to confirm. But see, cash flow because we are putting that money into working capital, right? Maybe in working capital and hence we are not converting that money into cash.

Addressed a key concern about the negative CFO, attributing it to working capital tied up in HAM projects and suggesting to look at standalone cash flow for a clearer picture.

Asked by Surendra Malla

Increase in Consolidated Loans and Advances Direct
Because, see, this is increase because whenever we will be doing HAM projects every year, as I mentioned you, right? See, on consolidated basis, what kind of turnover which you have booked? Out of that turnover, 60% is to be funded by debt and equity. So, that amount has to come from debt only?

Explained the increase in financial assets (loans and advances) as a direct consequence of the HAM business model, where a significant portion of project value is received over a long period.

Asked by Surendra Malla

Appetite for BOT Projects and Annual Equity Commitment Direct
See, BOT because of different structure otherwise we are comfortable while taking BOT projects or HAM. HAM is again BOT where there also we have to put in equity. So to the extent of, let's say, we have to put in INR2,000, INR3,000 crores of equity on a yearly basis, we are comfortable, but it may not be 100% on BOT.

Provided clarity on the company's strategy and capacity for taking on BOT projects, including the annual equity commitment they are comfortable with, and their cash position to support this.

Asked by Parvez Qazi

IRR for Agra-Gwalior BOT Project Direct
So, this BOT project is a major game of traffic analysis. And in traffic, for this particular BOT concession, where my floor and cap is fixed, right? Because I can't get more than that and I can't be losing more than that. This is the agreement, this is the provision which is already given into the concession agreement.

Addressed concerns about the project's profitability given competitive bidding, with management expressing confidence in achieving good IRR due to the project's structure and traffic analysis.

Asked by Shravan Shah

Increase in Standalone Receivables vs. Revenue Decline Direct
See, receivable on standalone is actually consisting of SPV debtors. SPV debtors has gone, total receivable is INR1,842 crores, right? Out of that INR1,842 crores, my own debtors, group debtors are INR691 crores. So, excluding that number, probably there is no increase as for now.

Clarified the composition of standalone receivables, explaining that the increase is primarily due to SPV debtors related to HAM projects rather than a deterioration in core collections.

Asked by Ishita Lodha

3 min read 6 chapters

Detailed narrative

Financial Performance and Profitability Overview

G R Infraprojects reported a consolidated revenue of INR7,394.70 crores for FY25, marking a 17.66% decrease year-over-year from INR8,980.15 crores in FY24. The group's EBITDA margin for FY25 stood at 22.13%, down from 23.63% in the previous fiscal year. Consolidated PAT also saw a decline to INR1,015.40 crores in FY25 from INR1,322.97 crores in FY24. The company's standalone PAT for FY25 was INR806.61 crores, significantly lower than FY24's INR1,977.43 crores, which included an exceptional gain of INR1,222 crores from asset transfers.

Order Book and Inflow Strategy

The company ended Q4 FY25 with a robust order book of INR24,346 crores, providing significant revenue visibility. This includes 30 projects worth INR14,370 crores under execution, 2 projects worth INR4,810 crores awaiting appointed dates, and 4 projects with L1 status totaling INR5,166 crores. For FY25, the order inflow, including L1 projects, was approximately INR13,000 crores. Looking ahead to FY26, G R Infraprojects has set an ambitious order booking target of INR20,000 crores, with a strategic focus on the highway sector (INR11,500 crores), railway (INR2,000 crores), metro (INR1,000 crores), power transmission (INR2,000 crores), and ropeway/hydro/tunnel (INR3,500 crores).

Capital Allocation and Debt Management

In Q4 FY25, the company demonstrated strong capital management by repaying INR361 crores of debt, which improved its standalone debt-equity ratio to an impressive 0.07. An operational HAM asset was transferred to Indus Infra InvIT for INR225.58 crores, contributing an exceptional gain. The company's consolidated borrowing stood at INR4,966.16 crores at the end of FY25, with a debt-to-equity ratio of 0.59. For FY26, the company plans a total capex of INR100-125 crores, including INR40-50 crores for its corporate office building, and expects to contribute INR1,000 crores in equity for HAM/BOT projects.

Margin Outlook and Sector Dynamics

Despite the decline in EBITDA margins in FY25, management expects to maintain normalized EBITDA margins around 13% (12-13%) for FY26 and FY27. This outlook is based on managing competitive pressures, market pricing, and escalation issues. The company is diversifying its portfolio, with the highway sector expected to contribute 55-57% of new order inflow, and other segments like railway, metro, and power transmission contributing the rest. Management believes that even with a changing mix, a 13% margin is achievable across sectors due to operational leverage.

Project Execution and Challenges

The company received pre-COD for one HAM project and an LOA for one road DBFOT toll project worth INR3,687 crores during Q4 FY25. Management noted that the government's focus on infrastructure development, including new greenfield expressways and two-lane highway conversions, provides significant opportunities. However, challenges such as persistent underbidding (up to 46%) and delays in land acquisition for projects, like those from the Maharashtra State Government, continue to impact project awards and appointed dates. The company is actively monitoring these issues to ensure timely project execution.

Working Capital and Receivables

Working capital days increased to 117 days at the end of FY25, up from 112 days in FY24, primarily due to an increase in SPV debtors. Standalone trade receivables were INR1,842.17 crores, including INR1,691 crores from HAM debtors. Management clarified that the increase in consolidated loans and advances is linked to the HAM business model, where 60% of turnover is funded by debt and equity and realized over 15 years. The company maintains almost INR1,000 crores in cash, which it plans to deploy for good opportunities, including BOT projects.

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