H.G. Infra Engineering (HGINFRA) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 saw significant declines in revenue and profit due to industry headwinds, project delays, and supply disruptions, with operations spanning roads, railways, solar, BESS, and transmission across 14 states and 36+ projects.

• Order book as of June 2026 stands at INR 14,502 crore (₹145,019 million), with 65% in highways, 21% in railways, and 10–14% in transmission/renewables.

• The quarter included significant divestment activity, with sale of stakes in multiple subsidiaries impacting exceptional items.

• No material misstatements were found in the financial statements by auditors, and management reports no operational impact from ongoing legal proceedings.

Financial highlights

• Standalone Q1 FY 2027 revenue: INR 907 crore (₹9,072 million), down 46.9% year-over-year; EBITDA: INR 77 crore (₹770 million, 8.49% margin); PAT: INR 28 crore (₹283 million, 3.12% margin), down 77.5% year-over-year.

• Consolidated Q1 FY 2027 revenue: INR 1,101 crore (₹11,006 million), down 25.7% year-over-year; EBITDA: INR 304 crore (27.6% margin); PAT: -INR 45 crore (net loss of ₹445.18 million, -4.04% margin).

• Gross standalone debt as of June 26: INR 1,834 crore; standalone debt-equity ratio 0.56; consolidated debt-equity ratio 1.43.

• Five-year revenue CAGR (FY21-26): 17.5%; EBITDA CAGR: 11.9%; PAT CAGR: 13%.

Outlook and guidance

• FY 2027 revenue guidance: INR 6,000–6,500 crore, with Q2 expected at ~INR 1,000 crore and a strong H2 rebound; FY 2028 revenue expected at INR 7,000 crore.

• EBITDA margin guidance for FY 2027 and FY 2028: 13.5%–14%.

• Order inflow target for FY 2027: INR 11,000–12,000 crore; INR 5,500 crore already received in Q1.

• Equity commitments for HAM projects are comfortably met, with ongoing expansion in the order book.

• Management assessed that ongoing legal proceedings have not impacted operations or financial position.