H.G. Infra Engineering (HGINFRA) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began with strong momentum, leveraging over 22 years of expertise and expanding into railways, metro, renewable energy, and transmission projects, with a diversified order book of Rs. 1,46,563 Mn as of June 2025.

• Achieved 13.5% year-over-year growth in standalone revenue, reaching Rs. 17,092 Mn, though PAT declined by 10.1% to Rs. 1,255 Mn and EBITDA margin compressed to 13.79%.

• The company executed a binding agreement to monetize five HAM assets, strengthening the balance sheet and enabling redeployment of capital.

• Standalone and consolidated Q1 FY26 results were reviewed by independent auditors, with no material misstatements identified.

Financial highlights

• Q1 FY26 standalone revenue: Rs. 17,092.43 million; EBITDA: Rs. 2,434 million (13.79% margin); PAT: Rs. 1,254.69 million (7.34% margin).

• Q1 FY26 consolidated revenue: Rs. 14,822.02 million; EBITDA: Rs. 2,680 million (17.52% margin); PAT: Rs. 992.64 million (6.7% margin).

• Margins declined due to a one-off Rs. 430 million margin correction related to a change in law for the Ganga Expressway project.

• Exceptional gain of Rs. 164.46 million recognized in consolidated results from the sale of a subsidiary.

• Receivables total Rs. 13,600 million, with major portions from HAM (Rs. 3,950 million) and solar (Rs. 4,380 million) projects.

Outlook and guidance

• FY26 revenue guidance maintained at Rs. 70,000 million, with expectations of Rs. 80,000 million+ in FY27.

• EBITDA margin expected to normalize to 15-16% for the full year, after Q1 margin dip.

• Order inflow target for FY26 is Rs. 1,10,000 million, with 75% from roads and railways and 25% from new verticals.

• Revenue CAGR of 22.5%, EBITDA CAGR of 22.7%, and PAT CAGR of 28.3% projected for FY20-25.

• Expanding presence in battery energy storage and transmission projects, with new contracts in Gujarat and Odisha.