IRB Infrastructure Developers (IRB) Q3 25/26 earnings summary

Executive summary

• Secured major TOT wins, including TOT 17 and 18, expanding market share in the TOT segment to 44% and presence to the east coast and Odisha.

• Monetized assets worth INR 84 billion, unlocking INR 49 billion in equity, and added INR 140 billion in new projects, with significant capital recycling and asset transfers such as VM7 Expressway.

• Board approved a 1:1 bonus share issue and a third interim dividend of 7% for Q3 FY26, totaling 21% for the first nine months, and increased authorized share capital to INR 12.6 billion.

• Transitioned to a sponsor-led asset manager model, focusing on capital efficiency, recurring income streams, and InvIT platforms for asset rotation.

• Expanded asset base to INR 940 billion, with presence in 13 states and a diversified portfolio across BOT, TOT, and HAM projects.

Financial highlights

• Q3FY26 PAT grew 14% year-over-year to INR 2.53 billion; total consolidated income for Q3FY26 was INR 19,123 million, down 9% YoY.

• EBITDA for Q3FY26 was INR 10,635 million, up from INR 10,492 million YoY; EBITDA margin improved to 59%.

• InvIT and related asset segment income grew 56% to INR 3,813 million; BOT segment income rose 9% to INR 7,066 million.

• Construction segment income fell 31% to INR 7,833 million due to project completions; EBITDA margin at 17%.

• Net debt to equity reduced to 0.41x as of Q3FY26, reflecting improved leverage.

Outlook and guidance

• Asset base targeted to reach INR 1,40,000 crore over the next three years, with multiple asset recycling cycles planned.

• Targeting PAT CAGR of 25%-30% and cash ROE expansion to 14%-15% by 2030.

• No additional equity required for new projects; future growth to be funded by asset churn.

• Expecting COD for Ganga Expressway Project soon and further expansion in high-growth states.