G R Infraproject Q3 FY26 Earnings Analysis

- For FY 2026, G R Infraprojects targets a revenue growth of 5% to 10%, with expectations of stronger execution in the second half after project delays. - FY 2027 growth is forecasted at around 10%, with more stable order inflows and project commencements. - Revenue from the transmission sector is expected at INR 2,000 to 3,000 crores annually going forward. - The company aims to secure INR 20,000 to 25,000 crores of new orders in the current year, mostly from highways and transmission. - For FY 2028, double-digit growth is anticipated, potentially exceeding 25%, contingent on order inflows and project starts. - The highway segment order inflow target is INR 10,000 to 15,000 crores annually, with an overall order inflow ambition of INR 25,000 to 30,000 crores for sustained growth. - The oil & gas EPC segment is targeted to contribute INR 1,000 to 1,500 crores annually over the next three years.

- Revenue growth guidance for FY26 is around 5-10%, with stronger growth of 10-15% expected in FY27. - Margin guidance remains steady in the range of 11-13%, potential to reach up to 13% if order inflows increase substantially. - Order inflow target for the current year remains INR 20,000-25,000 crores, with a strong pipeline across highways, transmission, hydro, and tunneling. - Transmission segment revenue expected to contribute INR 2,000-3,000 crores yearly, with an asset base growth planned from INR 6,000 crores currently to a sizable portfolio in 1–1.5 years. - Operating profit growth expected to track order wins and execution pace, potentially improving margins with higher scale. - Earnings stability supported by recurring income from InvIT distributions (~INR 225-230 crores annually). - Expansion into sectors like offshore oil & gas EPC targeted, with 8-15% margins planned over time.

- Tower manufacturing: Currently done in-house, with some procurement from outside due to high demand; no plans for conductor manufacturing as of now. - Maintenance Capex: Expected to be moderate, around INR100 crores for the entire year; some major maintenance projects may come in H2 or early next year. - Equity infusion: Total equity infusion required over next three years is INR3,200 crores (~INR1,000 crores per year); INR275 crores already infused, with an additional INR1,100 crores pending. - Manufacturing opportunity: Open to considering backward integration through manufacturing in power transmission (towers or conductors) if opportunities arise to support growth. - Strategic investment: Plans to monetize transmission assets through potential sale or partnership with investors after project completion. - Capex guidance: Limited capex (~INR50 crores spent so far in current year), with cautious approach focused on EPC and asset creation.

- Total outstanding equity infusion required over the next three years is INR 3,200 crores, approximately INR 1,000 crores per year. - So far, INR 275 crores equity has been infused, with an additional INR 1,100 crores of equity planned to be deployed. - For H2 FY26, equity infusion target is around INR 400-500 crores. - No significant new capex planned; total capex guidance for the entire year is around INR 100 crores. - No explicit mention of new debt fundraising; combined consolidated borrowings stand at INR 5,995 crores with a debt-to-equity ratio of 0.67x. - Equity infusion is primarily directed towards HAM BOT and power transmission projects. - Potential transfer of one or two projects to Indus Infra Fund in the second half may indirectly affect funding needs.

- Total order book: Approximately INR 6,000 crores for EPC projects. - Transmission segment order book: About INR 2,700 - 2,800 crores EPC value pending. - Material procurement in transmission: INR 1,300 crores (procured at SPV level, not recognized as revenue). - Total pending orders in transmission (including material): Roughly INR 4,000 crores (EPC + material). - Equity invested so far in transmission projects: INR 275 crores. - Pending equity infusion in transmission: Around INR 1,084 crores to INR 2,000 crores (varying figures discussed). - Overall targeted order inflow for current fiscal year: INR 20,000 to 25,000 crores. - So far achieved order inflow: INR 3,000 crores. - Transmission EPC revenue out of the pending order is INR 2,800 crores, the rest is material expenses at SPV level.