H.G. Infra Engineering Ltd Q3 FY25 Earnings Analysis
Published 4 Jul 2026 | Market Cap: ₹3.5K Cr
Price
₹523
Market Cap
₹3.5K Cr
P/E Ratio
13.4
Earnings Summary
Revenue growth for FY '26 is expected at 15% to 17% year-on-year. Company targets 17%-18% revenue growth in upcoming quarters and FY '26, maintaining previous guidance.
📊 Revenue & Sales Performance
- →Revenue growth for FY '26 is expected at 15% to 17% year-on-year.
- →For the upcoming quarters, revenue growth is targeted at 17% to 18%.
- →Order inflow guidance for FY '25 is INR11,000 to 12,000 crores, with INR8,200 crores already secured.
- →Execution for FY '26 is expected around INR7,000 crores with an order inflow of about INR10,000 crores.
- →From existing order book (around INR11,000 crores excluding MSRDC), INR6,500 crores+ revenue is forecasted for FY '26.
- →Key projects contributing to growth include railway (INR2,300-3,300 crores order book portion), solar (INR1,500 crores to complete), HAM projects (INR5,000 crores balance), and ongoing Ganga & solar projects.
- →Post-monsoon execution ramp-up expected for new projects starting around May-June.
- →Margins expected steady at 15%-16%.
📈 Profitability & Margins
- →Company targets 17%-18% revenue growth in upcoming quarters and FY '26, maintaining previous guidance.
- →EBITDA margin expected steady at 15%-16%.
- →Solar EPC margins around 18% with equity IRR of 14%+.
- →Battery Energy Storage System (BESS) projects target equity IRR of 14%-15% with EPC margins 10%-13%.
- →Railway projects and river linking initiatives present significant upcoming opportunities contributing to growth.
- →Order inflow expected between INR11,000 to 12,000 crores for FY '25, with INR8,200 crores secured already.
- →New project wins (e.g., New Delhi Railway Station redevelopment) and diversification into green energy and transmission sectors aim to bolster earnings.
- →EBITDA shows increasing trend: Q3 FY '25 stands at INR250 crores with 16.6% margin, nine-month EBITDA at INR668 crores (16.4% margin).
- →PAT margins stable around 9%.
- →Overall, sustained operational efficiencies, project selection, and expanding sectoral presence drive positive earnings outlook.
🏗️ Capital Expenditure Plans
- →Capex done in 9 months FY '25 is around INR92 crores; Q4 anticipated capex is INR5-10 crores.
- →For FY '26, expected capex is INR40-50 crores, with no major jump planned.
- →Strategic investment includes equity requirement of around INR450 crores over next 2 years for battery energy storage projects.
- →Total equity investment in projects like solar and batteries is significant (e.g., INR700 crores equity for solar projects).
- →Company is looking to monetize 5 projects with invested equity of about INR770 crores, with ongoing discussions with potential buyers.
- →Exploring new verticals including renewable energy, transmission, and water sectors for growth and diversification.
- →Battery Energy Storage System (BESS) projects involve INR500 crores EPC work and target 14-15% equity IRR with EPC margins around 10-12%.
💰 Fundraising & Capital Structure
- →The company expects equity requirement of around INR450+ crores over the next 2 years for the battery energy storage project.
- →Discussions have started with potential investors to monetize about 5 projects with total invested equity roughly around INR770 crores.
- →For debt, the stand-alone gross debt currently stands at INR1,329 crores (including working capital and term loans).
- →The company plans to reduce working capital debt to INR600-700 crores by March 2025 as solar project disbursement improves.
- →No major capex planned next year except INR40-50 crores.
- →Overall, no mention of fresh large-scale debt or equity raising, but active equity monetization of certain projects and planned debt normalization indicate ongoing fundraising activities.
📋 Order Book & Pipeline
- →Current order book stands at INR 15,080 crores.
- →Composition: Roadways and highways INR 11,235 crores; Railways and metro INR 2,289 crores; Solar INR 1,556 crores.
- →Order book mix: 33% HAM projects, 67% EPC projects.
- →Segment-wise contribution: Roads and highways 75%, Railways 15%, Solar 10%.
- →New order inflow for FY '25 targeted at INR 11,000-12,000 crores.
- →Till date FY '25, secured approximately INR 8,200 crores including the New Delhi Railway Station redevelopment project.
- →Pipeline for bidding around INR 72,000 crores of projects: Highways INR 50,000+ crores, Railways INR 18,000 crores, Solar/Battery around INR 8,000 crores.
- →INR 8,200 crores of new projects received; additional bids of INR 3,000-4,000 crores anticipated by March.
Key Metrics
Frequently Asked Questions
What were H.G. Infra Engineering Ltd Q3 FY25 results?
Revenue growth for FY '26 is expected at 15% to 17% year-on-year. Company targets 17%-18% revenue growth in upcoming quarters and FY '26, maintaining previous guidance.
What is H.G. Infra Engineering Ltd share price analysis?
H.G. Infra Engineering Ltd currently shows a neutral. The stock trades at a P/E of 13.4 with a market cap of ₹3,538 Cr. Investors should review the full earnings analysis for detailed insights.
Is H.G. Infra Engineering Ltd planning capital expenditure?
Capex done in 9 months FY '25 is around INR92 crores; Q4 anticipated capex is INR5-10 crores.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.