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    Highway Infrastructure Q1 FY27 earnings call

    HILINFRA
    Services·18 Aug 2026
    Management Summary

    Highway Infrastructure Limited reported robust revenue growth in Q1 FY27, with total income surging 170.6% year-on-year to INR 304.3 crores. However, profitability was severely constrained by temporary factors such as geopolitical events, bidding restrictions, and the surrender of an unprofitable toll project, leading to low EBITDA and PAT figures. The company successfully secured new toll contracts worth INR 108.7 crores, expanding its presence in South India, and maintains a healthy order book of INR 778 crores, with ambitious revenue growth targets for FY27 and FY28.

    Highlights

    5

    • Total income for Q1 FY27 increased by 170.6% year-on-year to INR 304.3 crores.

    • Secured a new tollway collection contract for Kozhinjipatti toll plaza valued at INR 28.7 crores.

    • Received Letter of Acceptance for toll operations at Krishnagiri-Thumbipadi section of NH-44 with a contract value of INR 80 crores.

    • Consolidated order book stood at approximately INR 778 crores as of June 30, 2026, providing healthy visibility.

    • Management anticipates recovery in traffic trends and improvement in EBITDA margins following temporary Q1 challenges.

    Concerns

    3

    • Q1 FY27 profitability was significantly impacted by temporary factors, including lower traffic volumes due to geopolitical developments and global trade disruptions.

    • A temporary bidding restriction from NHAI and the voluntary surrender of an economically unfavorable toll project also contributed to the impact on profitability.

    • EBITDA for the quarter was INR 4.8 crores and PAT was INR 1.1 crores, indicating very thin margins.

    Key financials

    Single quarter

    03 metrics
    1. 01Total Income₹304.3 Cr+1.7%YoY
    2. 02EBITDA₹4.8 Cr
    3. 03PAT₹1.1 Cr

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Targeted Turnover
    INR 850 crores
    		High
    Revenue
    Targeted Turnover
    INR 1,200 crores
    		High
    Revenue
    Toll Revenue Target
    INR 700 crores
    		High
    Revenue
    EPC Revenue from existing order book
    INR 150 crores
    		High
    Revenue
    EPC Revenue from existing order book
    INR 200 crores
    		High
    Revenue
    EPC Revenue Contribution from New Projects
    INR 150 crores
    		Medium
    Project Value
    Beverly Hills Project Value
    INR 70 crores
    		Medium
    Project Timeline
    Beverly Hills Project Execution Timeline
    15 to 16 months
    		High

    What to watch in Q2 FY27

    5

    Traffic Volume Recovery

    next quarter
    CurrentSome regions normal, Western Front still impacted
    TargetNormalization across all regions, especially Western Front

    Why it matters

    Traffic volumes directly impact toll revenue and overall profitability, especially after Q1's geopolitical disruption🌐s.

    I think it is important to mention that the traffic in some regions has resumed to normal, the regions which were not very close to the ports on the Western Front. But on the Western Front, I still feel that substantially it will take some time to resume to what the earlier trend was because additionally a lot of factories were impacted and a lot of trade was impacted. So, I think it will take some time. But nonetheless, mostly I think general business has resumed to majorly the business should not be impacted on that front.

    Risks & concerns

    2
    RiskSeverity

    Temporary Profitability Impact

    Q1 FY27 profitability was impacted by lower traffic volumes due to geopolitical developments, global trade disruptions, NHAI bidding restrictions, and voluntary surrender of an unfavorable toll project. — Management acknowledged

    high

    Execution Risk in New Segments

    Entering new segments like renewable energy production and transmission requires significant preparatory work and time to avoid risks, indicating a cautious approach. — Management acknowledged

    medium

    Q&A highlights

    8

    “Actually, this won't have a significant impact on the full-year results because, based on past trends, we tend to hover around the break-even point during the first and second quarters, while seeing a rapid recovery in the third and fourth quarters.”

    Addresses investor concerns about Q1's weak profitability and provides reassurance on the full-year outlook, explaining the seasonal nature of profitability.

    asked by Deep Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Highway Infrastructure Limited reported a total income of INR 304.3 crores for Q1 FY27, marking a significant 170.6% year-on-year growth. Despite this strong top-line performance, profitability was severely constrained, with EBITDA at INR 4.8 crores and PAT at INR 1.1 crores. Management attributed the low profitability to temporary factors experienced during the quarter.

    02

    Diversified Business Model and Strategic Evolution

    The company has successfully transitioned from a regional EPC contractor to a multi-vertical infrastructure platform, encompassing tollway collection, EPC, and real estate. This diversified business model enables participation across various segments of India's infrastructure growth story. This approach allows for a balanced business model and disciplined capital allocation, supporting long-term value creation.

    03

    Tollway Business Challenges and Strategic Wins

    The tollway collection business faced challenges in Q1 FY27, with profitability impacted by lower traffic volumes at the Moti Naroli project due to geopolitical developments and global trade disruptions. Additionally, a temporary NHAI bidding restriction and the voluntary surrender of an economically unfavorable toll project affected the segment. However, the company secured new tollway collection contracts in July 2026, including INR 28.7 crores for Kozhinjipatti and INR 80 crores for Krishnagiri-Thumbipadi on NH-44, expanding its footprint in South India.

    04

    EPC Business Focus and Order Book

    The EPC business continues to focus on commercially viable opportunities across various infrastructure types, prioritizing execution quality and profitability over order book size. The consolidated order book stood at approximately INR 778 crores as of June 30, 2026, with INR 500 crores allocated to EPC projects and the remainder to the toll segment. This provides healthy visibility for future execution, with INR 150 crores expected to be realized in FY27 and INR 200 crores in FY28 from the existing EPC order book.

    05

    Emphasis on Technology Integration and Efficiency

    Management is actively integrating technology and AI into its operations to enhance efficiency, reduce manpower, and improve data analysis. This strategic focus aims to optimize core business processes, such as managing multiple sites from a central location and leveraging data for better decision-making. The company expects to formally disclose these developments soon, positioning itself as a technology-backed infrastructure firm.

    06

    Geographic Expansion and Future Outlook

    Highway Infrastructure Limited is actively pursuing geographic diversification, with recent strategic wins in Tamil Nadu and a keen interest in Andhra Pradesh, Telangana, West Bengal, and Assam. The company aims for a targeted turnover of INR 850 crores for FY27 and INR 1,200 crores for FY28, with INR 700 crores from toll and the rest from EPC in FY27. Management remains confident in its growth outlook, driven by its diversified model, expanding geographic footprint, and strong project pipeline.

    This is an AI-generated summary of a publicly available earnings call transcript.