IRB Infrastructure Developers (IRB) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 PAT rose 85% YoY to ₹2,603.15 million, supported by toll growth and higher InvIT distributions.

• Toll collections grew 24% YoY in Q2 on a like-for-like basis; the portfolio spans ~₹940 billion of highway assets.

• Strategy is shifting toward a capital-light sponsor and O&M platform, with recurring income from InvIT distributions, project management fees, O&M annuities and asset recycling.

• Solapur Yedeshi and CG Tollway transferred to the Public InvIT at ₹46 billion enterprise value, unlocking ₹27.44 billion in equity for the Private InvIT.

Financial highlights

• Q2 FY27 total income was ₹19,445.10 million vs ₹18,002.95 million YoY; EBITDA was ₹11.02 billion vs ₹9.74 billion.

• Q2 profit before tax was ₹3,853.03 million vs ₹2,608.06 million; net profit was ₹2,603.15 million vs ₹1,408.24 million.

• H1 FY27 total income was ₹41.17 billion vs ₹39.65 billion YoY; net profit was ₹5,665.85 million vs ₹3,433.06 million.

• Q2 finance costs fell to ₹3.88 billion from ₹4.51 billion YoY, while depreciation and amortization rose to ₹3.29 billion from ₹2.62 billion.

• Group toll collections were ₹23.78 billion in Q2 FY27 vs ₹19.21 billion YoY, and ₹48.22 billion in H1 vs ₹38.66 billion, on a like-for-like basis.

Outlook and guidance

• FY30 objectives include road AUM above ₹1,400 billion, net debt of zero, cash ROE of 14%+ and PAT CAGR of 25%.

• Plans call for repeated equity recycling and multiple asset-transfer cycles over 24–36 months; bid strategy targets 15–16% IRR and transfer at 12–12.5% IRR after 3–4 years of stabilization.

• ~₹80 billion of new sectoral opportunities are being explored, supported by asset-recycling proceeds; ~₹8,000–10,000 crore of opportunities are targeted through capital recycling.

• Government road monetization pipeline is estimated at ~₹4.4 trillion, with an annual opportunity of ₹400–500 billion; TOTs remain the primary growth driver.