Highway Infrastructure Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Highway Infrastructure Limited reported a strong Q3 FY26, with consolidated EBITDA growing 10.7% YoY and 9M FY26 PAT surging 121.5% YoY. The company achieved its highest-ever order book of INR 1,160 crores, driven by significant new tollway collection mandates. Management provided an FY27 revenue target of INR 1,000 crores and expects a 2-3% margin expansion, alongside strategic geographic diversification and a positive outlook on the Multi-Lane Free-Flow tolling system.

Highlights

  • Consolidated Q3 FY26 EBITDA grew 10.7% YoY to INR 9.6 crores, reflecting operational efficiency.

  • Consolidated 9M FY26 PAT increased 121.5% YoY to INR 23.1 crores, indicating strong profit growth.

  • Order book reached INR 1,160 crores as of January 2026, marking the highest in company history and over 4x higher than March 2025.

  • Secured the largest tollway collection mandate of INR 328.8 crores for Kaza Fee Plaza on NH16, demonstrating confidence in high-volume plazas.

  • Added over INR 437.3 crores in new tollway collection orders, significantly scaling presence as a technology-enabled asset-light operator.

Key financials

2 periods

Headline

  • Consolidated Total Income
    ₹128.4 Cr
  • Consolidated EBITDA
    ₹9.6 Cr
    YoY +10.7%
  • Consolidated PAT
    ₹6.3 Cr
    YoY +34.3%

9M

  • Consolidated Total Income
    ₹365.2 Cr
  • Consolidated EBITDA
    ₹35.4 Cr
    YoY +65.2%
  • Consolidated PAT
    ₹23.1 Cr
    YoY +121.5%

What they filed

Q1 FY27: revenue up 170.9%, net profit down 85.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue117 140 132 112 95 −19%127 −9%275 +108%303 +171%
EBITDA1 6 15 12 -7 −648%8 +25%14 −11%4 −67%
Net profit2 5 12 7 10 +516%6 +34%9 −27%1 −85%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Revenue

  • FY27 Revenue Revenue · FY27 · High confidence INR 1,000 crores
    Sir, we are estimating our revenue for FY27 to almost INR 1,000 crores.

    — Saurabh Mittal

  • FY27 EPC Revenue Revenue · FY27 · High confidence INR 700 crores
    From EPC, we are expecting INR 700 crores and from toll and real estate we are expecting INR 300 crores.

    — Saurabh Mittal

  • FY27 Toll and Real Estate Revenue Revenue · FY27 · High confidence INR 300 crores

    — Saurabh Mittal

  • New Regions Revenue Contribution Revenue · near future · Medium confidence 20% to 30%
    But I think contribution from different states could, we will increase it gradually over the years. But we are looking at least a minimum of 20% to 30% contribution from different states in the near future.

    — Riddharth Jain

Order Book

  • Order Book Growth Order Book · coming financial year · Medium confidence 50%
    I think we are expecting about growing the order book by 50% in the coming financial year.

    — Riddharth Jain

Margin

  • Margin Increase Margin · Medium confidence 2% to 3%
    We are looking at an increase of about 2% to 3%.

    — Riddharth Jain

Order Book Execution

  • EPC Work Orders Completion FY27 Order Book Execution · FY27 · High confidence INR 250 crores
    And we have INR 630 crores work orders in EPC, out of which we will complete INR 250 crores in FY27.

    — Saurabh Mittal

  • Toll Business Work Orders Completion Next Year Order Book Execution · next year · High confidence INR 550 crores
    Sir, the tenders that we get in the toll business, we have to complete them in an year. So, for example, we have to complete INR 550 crores work orders in tolls by next year.

    — Saurabh Mittal

Toll Collection

  • Tollway Collection Growth Toll Collection · coming years · High confidence double from INR 55,000 crores to INR 1.4 lakh crores
    And not only that, I think the tollway collection is expected to double in the coming years from INR 55,000 crores to about INR 1.4 lakh crores.

    — Riddharth Jain

What to watch in Q4 FY26

FY27 Revenue Target Achievement

FY27
Current INR 128.4 crores (Consolidated Q3 FY26)
Target INR 1,000 crores (FY27)

Why it matters

This is a key financial target for the next fiscal year, indicating overall business growth.

Sir, we are estimating our revenue for FY27 to almost INR 1,000 crores.

Risks & concerns

  • Geographic concentration and weather-related impacts on toll collection

    medium

    Toll collection can be affected by local issues, weather (fog, rain, landslides), and festivals. Management mitigates this by diversifying projects across different regions and climates.

    Management acknowledged

  • Competition in infrastructure sector

    low

    While demand for infrastructure grows and competition intensifies, management notes less competition for high-value toll orders due to limited registered contractors with NHAI.

    Management downplayed

Q&A highlights

7 direct
Differentiation of technology-driven toll operations Direct
we have already deployed, we try to reduce the manpower and handover most of the work to technology in terms of how well we manage through our software, how well we manage the local agencies. As a fact, we have as a strategy, we try to accommodate maximum local people in that area so as to cut the cost for the company for operations.

Highlights the company's competitive advantage and cost-saving strategy through technology and local employment.

Asked by Anjali Singh

Key criteria for evaluating tollway collection projects and minimum bid Direct
there is no minimum bid that we take for tollways. For tolls, it is very important to understand where we can find more growth. So, our first factor would be what kind of growth are we expecting on that particular path? Let's say, for example, for any new package on the new Delhi- Vadodara Expressway, Delhi-Mumbai Expressway, we will always expect more growth.

Explains the strategic decision-making process for project selection, focusing on growth potential and risk mitigation.

Asked by Anjali Singh

Commercial leasing evolving into recurring annuity income and expansion plans Direct
I think definitely that is our agenda that we create some base recurring income through these commercial properties. As we have mentioned that highway already owns pieces of land which hold a lot of great commercial value. So, our target is ideally to create assets which give us recurring income throughout the year, which increase at a good rate year-on-year.

Reveals the company's strategy to leverage existing land assets for stable, recurring income streams and diversify revenue.

Asked by Amit Kumar

Company's revenue and business mix in 3-5 years Partial
It is very difficult to put a number to that, but I would strongly say that the kind of growth that we have seen in the past one year since our listing, you can see sustained growth such as this. And we can assure you that we are trying our level best to increase our efficiency, increase our margins and it is evident in our numbers in our books.

Management acknowledges difficulty in providing specific long-term numbers but expresses confidence in sustained growth and margin improvement based on past performance.

Asked by Amit Kumar

Susceptibility of tollway collection order book momentum and competitive scenario Direct
For high value toll orders, there is less competition. That is because NHAI has very less registered contractors which can actually tender for these kinds of contract values. And secondly, I think this momentum will continue to go on because facts suggest that like I have also mentioned in my speech, is more allocation of funds from the government to roads and building infrastructure.

Addresses concerns about competition and sustainability, highlighting the limited number of qualified contractors for large projects and government support for infrastructure.

Asked by Amit Chaudhuri

Bidding strategy for tollway collection segment Direct
So, that is why we have a couple of tolls, we are strategizing to take up a couple of tolls in South, like we recently took up the Kaza Fee Plaza, which has clear weather almost year-round except monsoon. And so to counter that monsoon period, we have a couple of plazas in Rajasthan, which have a downtrend in monsoon, but have a good up cycle in the monsoon season.

Illustrates the company's risk diversification strategy by balancing projects across different geographies and climates to mitigate seasonal impacts.

Asked by Akansha

Impact of Multi-Lane Free-Flow (MLFF) tolling system on business model Direct
No, I think, in fact, for that matter it will only benefit us because the faster the car moves, it will attract more and more traffic towards the road. I think, as a matter of fact, in very, very few regions now, just because of high traffic, people try to avoid tolls because they have to stop at tolls for a longer period of time.

Management views MLFF as a positive, expecting increased traffic due to smoother flow and reduced manpower needs, leading to higher efficiency and margins.

Asked by Yash

Revenue contribution expected from new regions from FY27 Direct
But I think contribution from different states could, we will increase it gradually over the years. But we are looking at least a minimum of 20% to 30% contribution from different states in the near future.

Provides a quantitative target for geographic diversification, indicating a significant portion of future revenue is expected from new markets.

Asked by Abhishek Sharma

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q3 & 9M FY26

Highway Infrastructure Limited reported robust financial results for Q3 FY26, with consolidated EBITDA growing 10.7% YoY to INR 9.6 crores. For the nine-month period (9M FY26), consolidated PAT saw a significant increase of 121.5% YoY, reaching INR 23.1 crores. Standalone figures also showed strong growth, with Q3 FY26 PAT up 38% YoY to INR 6.1 crores and 9M FY26 PAT up 192% YoY to INR 22.9 crores, indicating healthy operational and profit expansion.

Record Order Book and Strategic Wins

The company achieved its highest-ever consolidated order book, reaching INR 1,160 crores as of January 2026, which is over four times higher than March 2025. This growth was significantly boosted by securing the largest tollway collection mandate in its history, valued at INR 328.8 crores for the Kaza Fee Plaza on NH16 in Andhra Pradesh. Additionally, HILINFRA added over INR 437.3 crores in new tollway collection orders, reinforcing its position as a technology-enabled asset-light toll operator.

FY27 Outlook and Margin Expansion

Management has set an ambitious revenue target of INR 1,000 crores for FY27, with a breakdown of INR 700 crores from EPC and INR 300 crores from toll and real estate segments. They anticipate a 2-3% increase in overall margins, driven by venturing into higher-value contracts with less competition. The company also expects to grow its order book by 50% in the coming financial year, further strengthening future revenue visibility.

Diversification and Growth Strategy

HILINFRA is actively pursuing geographic diversification, expanding into Gujarat, Rajasthan, and the wider Northeast, with a target of 20-30% revenue contribution from these new states in the near future. Operationally, the company is building adjacencies in renewable EPC, EV charging infrastructure, ropeway operations, and ancillary commercial services at toll plazas. This strategy aims to reduce concentration risk and broaden its addressable market, leveraging supportive sector tailwinds like the INR 3.1 lakh crores allocation for highways.

Technology-Driven Toll Operations and MLFF

The company differentiates its toll operations through technology, focusing on digitalization, leakage control, and high throughput. They aim to reduce manpower by leveraging software and local agencies, while also accommodating maximum local people to cut operational costs. Management views the upcoming Multi-Lane Free-Flow (MLFF) tolling system as a benefit, expecting it to attract more traffic due to smoother movement, reduce manpower needs, and ultimately increase efficiency and margins.

Commercial Leasing and Real Estate Development

HILINFRA plans to evolve its commercial leasing activities into a recurring annuity-style income stream. By strategically developing its land assets, which hold significant commercial value, the company aims to create assets that generate consistent, year-on-year income growth. The focus areas for expansion include hospitality (catering to the growing wedding industry) and commercial leasing (food, beverages, clothing, accessories), capitalizing on increased consumer spending.

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