H.G. Infra Engg.

H.G. Infra Engineering Limited reported standalone revenue of ₹1,709 crores and consolidated revenue of ₹1,482 crores for Q1 FY26. Standalone EBITDA stood at ₹236 crores with a margin of 13.79%, while consolidated EBITDA was ₹258 crores with a margin of 17.52%. Standalone PAT was ₹125 crores (7.34% margin) and consolidated PAT was ₹99 crores (6.7% margin). The dip in consolidated figures is attributed to the elimination of intergroup transactions with solar SPVs, which are recorded as capital work-in-progress.

The company's total order book as of Q1 FY26 stands at ₹14,656 crores, comprising ₹9,623 crores from roads and highways, ₹2,912 crores from railways and metro, ₹1,620 crores from BESS, and ₹500 crores from solar. H.G. Infra aims to derive 30-40% of its order book from non-road sectors over the next 2-3 years. This quarter, the company secured its first transmission project worth ₹350 crores and an additional 300 MW BESS project, bringing cumulative BESS capacity to 735 MW (1,470 MWh).

H.G. Infra executed a binding offer document with Neo Infra Income Opportunities Fund for the monetization of five HAM assets (Raipur-Visakhapatnam corridors OD-5, OD-6, AP-1 and Khammam-Devarapalle Package 1 and 2). The transaction has an enterprise value of ₹3,584 crores, with a total equity invested of ₹767 crores and debt obligation of ₹2,200 crores. The company expects to receive ₹1,384 crores against its equity, representing a 1.8x return. The transaction is expected to conclude within the current financial year, strengthening the balance sheet and providing capital for redeployment.

For solar projects, 70 out of 183 plants are completed, contributing to a cumulative 700 MW DCS capacity. Debt funding for these projects is 83% sanctioned, with remaining approvals and disbursements expected in Q2 and Q3 FY26. For BESS, the company has a cumulative contracted capacity of 735 MW and expects annual revenue of ₹225 crores upon commissioning in November and December 2026. Equity requirement for BESS projects is ₹500 crores, with ₹1 crore infused and ₹119 crores anticipated this financial year.

Key EPC projects like Ganga Expressway are 97.4% complete, targeting 100% by Q2 FY26, and Delhi UER is completed. HAM projects like Karnal Ring Road are 77.1% complete, and Raipur-Visakhapatnam corridors are progressing towards 100% completion by Q3 FY26. In railways, DMRC is 82% complete, targeting 100% within three months, and New Delhi railway station's appointed date was declared on August 6, 2025, with execution starting by Q2 FY26 end. Land acquisition remains a challenge for new HAM projects like Nagpur-Chandrapur, with LOA expected by December.

The Q1 FY26 EBITDA margin was impacted by a ₹43 crore correction related to a change in law for the Ganga Expressway royalty revision, which is not expected to be realized soon. This accounted for a 2.5% correction in EBITDA. Excluding this, other projects are performing as per expected margins. Management is confident of normalizing EBITDA margins to 15-16% in the next three quarters and reiterated the FY26 revenue guidance of ₹7,000 crores, supported by advanced-stage projects and new railway/solar/BESS contributions.

The company's standalone gross debt stands at ₹1,049 crores, primarily comprising working capital debt. Equity requirements for remaining HAM projects total ₹1,664 crores, with ₹997 crores already infused and ₹298 crores planned for the next 9 months of FY26. Equity for BESS and transmission projects is also planned over FY26-FY28. The HAM asset monetization is a key capital allocation event, providing significant funds for deleveraging and future growth without substantial new capex, as the existing equipment fleet is sufficient for upcoming projects.