G R Infraproject

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.

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).

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.

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.

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 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.