HILINFRA

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.

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.

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.

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.

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.

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.