Detailed Narrative
Q3 & 9MFY26 Financial Performance Overview
H.G. Infra Engineering reported standalone revenue of ₹1,450 crores for Q3 FY26, with an EBITDA margin of 15.5%. Standalone PAT for the quarter stood at ₹97 crores, reflecting a PAT margin of 6.7%, a decline from 9.1% in Q3 FY25. For the 9MFY26 period, standalone revenue reached ₹4,313 crores, with an EBITDA margin of 14.1% and PAT margin of 6.7%. Consolidated figures showed Q3 FY26 revenue at ₹1,421 crores, EBITDA margin at 21.7%, and PAT at ₹94 crores (6.6% margin), also down from 9.1% in Q3 FY25. The higher tax rate of 31.5% in Q3 was attributed to a ₹6 crore MSME provision.
Robust Order Book and Promising Pipeline
As of 3QFY26, the company's order book stood at a robust ₹13,624 crores, providing strong revenue visibility. This order book is well-diversified, with Roads & Highways contributing 64% (₹8,734 crores), Railways & Metro 20% (₹2,779 crores), Renewables 15% (₹1,620 crores from BESS and ₹394 crores from Solar & Transmission), and other sectors 1%. The company secured new projects worth ₹3,300 crores in 9MFY26 and is highly optimistic about adding another ₹4,000-5,000 crores by March '26. The bidding pipeline includes ₹14,000 crores in highway projects (EPC/HAM), ₹4,600 crores in railway projects, and BESS bids totaling approximately ₹8,000 crores.
Project Execution Updates Across Segments
Key project updates include near completion of the Ganga project (99%) with COD expected this quarter. The Jamshedpur elevated project is at 36.9% completion, and Neelmangala-Tumkur project reached 54.4%. In HAM projects, Karnal Ring Road is 94.2% complete, and Raipur-Visakhapatnam Corridor OD-5 and OD-6 have received provisional completion certificates. Khammam-Devarapalle Package-8 KD-1 and 2 are 99.1% and 96.9% complete, respectively, expected to finish in Q4 FY26. Railway projects like DMRC Metro (99%) and Bilaspur Himachal Pradesh Railway (87.8%) are targeting Q1 FY27 completion. Solar projects, despite 95.8% physical progress, faced delays due to monsoon and transmission line issues, pushing full commissioning to March/April '26.
Capital Allocation and Debt Management
The company invested approximately ₹305 crores in capex during the 9MFY26 period. Standalone gross debt stood at ₹1,945 crores, while consolidated gross debt was ₹6,032 crores with consolidated cash of ₹255 crores. To bridge a funding gap for solar projects, the company availed additional working capital limits, leading to a temporary increase in overall debt. Management expects this debt to reduce significantly upon receiving ₹425 crores from the solar SPV post-commissioning. The total equity requirement for 11 HAM projects is ₹1,750 crores, with ₹1,242 crores infused by December '25 and ₹117 crores scheduled for infusion in the next three months.
HAM Asset Monetization Progress
H.G. Infra Engineering is actively pursuing the monetization of its HAM assets. A binding offer document was executed with Neo Infra Income Opportunities Fund in August '25 for the divestment of five wholly-owned HAM subsidiaries. Security purchase agreements for all five projects were executed in the previous quarter. The company has received NOCs from lenders for Khammam-Devarapalle Package-1 and 2, and Raipur-Visakhapatnam project Package-5. Management anticipates completing the transaction for at least three projects within the current financial year, expecting to realize ₹500-600 crores as the first part of consideration.
Outlook and Future Strategy
The Union Budget 26-27 has strengthened the road sector with higher allocations, and the railway sector also received substantial capital outlay. H.G. Infra is strategically diversifying into new sectors like solar energy, transmission, and battery storage. The company has already executed over 350 MW in solar and has binding agreements for 735 MW/1,470 MWh BESS projects. Management expects to achieve ₹7,000 crores in revenue for FY27 and target new order inflows of ₹10,000-12,000 crores in FY27. Discussions with the Adani Group for new road and rail projects are also at an advanced stage.
CBI Matter and Operational Impact
Regarding the recent CBI matter, management confirmed that a search was conducted in their offices in January. They stated that necessary updates have been disclosed through stock exchanges and that there has been no impact on the company's operations and financial position. The matter is subjudice, and the company is extending full support to the agencies, promising further updates upon any material development.