H.G. Infra Engineering Limited

H.G. Infra Engineering reported a standalone revenue of ₹1,973 crores for Q4 FY25, with an EBITDA of ₹283 crores and a margin of 14.3%. Standalone PAT for the quarter stood at ₹212 crores, with a margin of 10.8%. For the full FY25, standalone revenue reached ₹6,052 crores, an 18.1% increase from ₹5,122 crores in FY24. The FY25 standalone EBITDA was ₹951 crores (15.7% margin), and PAT was ₹577 crores (9.5% margin). Consolidated financials for Q4 FY25 showed revenue of ₹1,361 crores and EBITDA margin of 17.6%, with PAT at ₹147 crores. The difference between standalone and consolidated figures is primarily due to intercompany eliminations related to solar projects, which will reverse as these projects become operational.

As of FY25, the company's order book stood at ₹15,281 crores, with roads and highways contributing 68% (₹10,392 crores), railways and metro 20% (₹3,097 crores), and solar/BESS 12% (₹1,792 crores). The order book is split 36% HAM and 64% EPC. Key project updates include 90% completion of the Ganga Expressway project, successful completion of Delhi UER, and 62.1% completion of Karnal Ring Road. However, some projects like MSRDC, Nagpur-Chandrapur, and Varanasi-Ranchi packages have faced delays in receiving appointed dates due to land acquisition and realignment issues.

H.G. Infra is actively diversifying its portfolio beyond roads, aiming for approximately 40% of orders from non-road sectors within the next 2-3 years. Significant progress has been made in renewable energy, securing 183 solar power plants totaling 700 MW DC capacity (EPC value ₹2,243 crores) and BESS projects with a total capacity of 735 MW / 1470 MWh (core project cost ₹1,700 crores). The company is also exploring opportunities in transmission and distribution, airports, and water infrastructure projects, particularly large river interlinking projects like Ken-Betwa and Eastern Rajasthan Canal.

The company successfully monetized four HAM projects (Gurgaon-Sohna, Rewari-Ateli, Ateli-Narnaul, Rewari bypass) for a total of ₹503 crores, transferring SPV shares to Highway Infrastructure Trust. Discussions are underway for the monetization of six additional HAM projects, which have an equity requirement of over ₹900 crores and debt of ₹2,100 crores, with completion expected by the end of the financial year. Equity investment in solar projects stands at ₹445 crores as of March 31, 2025, out of a total ₹721 crores, with the balance to be deployed in FY26. BESS projects have an equity commitment of ₹295 crores.

Standalone gross debt is ₹1,068 crores, while consolidated gross debt is ₹4,092 crores, including ₹2,055 crores for HAM projects and ₹969 crores for solar projects. The increase in working capital is attributed to significant funds (₹550 crores) deployed for procuring solar modules to secure competitive prices and ₹190 crores in mobilization advances taken from banks. Management expects debt to mellow down by Q2 FY26 and normalize by year-end as solar EPC projects are completed and payments are received. Capex for FY26 is expected to be minimal, around ₹20-25 crores, primarily for critical equipment.

H.G. Infra Engineering is targeting an order inflow of ₹11,000 crores for FY26, with approximately 70% from roads and railways and 30% from other sectors. The company aims to sustain an EBITDA margin of 15-16% and achieve revenue growth of 17-18% in the next year, projecting FY26 revenue around ₹7,100 crores and FY27 revenue exceeding ₹8,000 crores. Once solar and BESS projects are completed and commissioned, they are expected to generate annual revenues of ₹300 crores and ₹225 crores, respectively. The government's focus on infrastructure development, including roads, railways, renewable energy, and water, provides a strong pipeline for future growth.