Highway InfraQ4 FY26
Highway Infra Q4 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹46P/E: 12.7Market Cap: ₹328 CrSector: Transport Infrastructure
Management growth scorecard
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0 of 0 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
- →FY27 revenue guidance is INR 950 crores, comprising approximately INR 300 crores from EPC and INR 650 crores from toll segments.
- →FY27 order book addition of INR 600 crores expected to convert about 33.33% (INR 200 crores) into EPC revenue, with toll segment converting 100%.
- →FY28 forecasted revenue is around INR 1,200 crores with INR 300 crores from EPC and INR 900 crores from toll collections.
- →Company expects strong execution visibility with a record order book of over INR 1,000 crores as of FY26 close.
- →Growth driven by geographic expansion across 11 states and 1 Union Territory, including markets like Gujarat, Rajasthan, Andhra Pradesh, and the Northeast.
- →New verticals such as wayside amenities, renewable energy, and ropeway projects are being explored to expand long-term addressable market.
- →Focus remains on margin discipline, capital efficiency, and selective bidding to sustain profitable growth.
Margin guidance
- →FY26 order book stands strong at INR 1,143 crores, providing robust revenue visibility.
- →FY27 revenue forecast is INR 950 crores; EPC at INR 300 crores and Toll at INR 650 crores.
- →FY28 revenue expected at INR 1,200 crores; EPC INR 300 crores and Toll INR 900 crores.
- →Margins to improve through operational efficiencies, technology leverage, and selective bidding.
- →Current EPC margins are 13%-14%, Toll margins at 7%, and Real Estate margins around 50%.
- →Focus on margin quality, profitability, and disciplined capital allocation over mere scale.
- →Expansion into adjacent businesses like wayside amenities and renewable energy (EV charging) anticipated to boost future earnings.
- →EPS growth implied by 42% PAT increase in FY26 and ongoing margin improvement efforts.
- →Management cautious but optimistic about sustained profit growth without compromising capital efficiency or quality.
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Fundraise plans
- →The company currently maintains a comfortable debt-equity ratio around 0.45x, indicating manageable leverage and financial flexibility.
- →Riddharth Jain mentioned that the balance sheet is supportive enough to fund new ventures, such as their wayside amenities projects, without immediate need for additional fundraising.
- →Decisions on any future capital raising through debt or equity will be taken selectively and based on timing and management discretion.
- →The company emphasizes calibrated deployment of capital and capital efficiency, focusing on projects that meet margin and strategic criteria.
- →There is no explicit announcement of any immediate or planned debt or equity fundraise disclosed in the call.
Order book
- →As of March 2026, the company has a record order book of INR 1,143 crores.
- →The executable pipeline consists of:
- → - INR 591.3 crores of balance EPC works.
- → - INR 526.1 crores of Tollway Collection balance value.
- →For FY27, expected revenue from the order book is INR 900 crores:
- → - INR 200 crores from EPC.
- → - INR 700 crores from Toll.
- →For FY28, expected revenue is INR 1,200 crores:
- → - INR 300 crores from EPC.
- → - INR 900 crores from Toll.
- →EPC order book is currently dominant in Madhya Pradesh, with some bidding in Gujarat and Goa.
- →The company emphasizes selective bidding to ensure margin quality and timely execution.
Capex plans
- →The company is actively working on adjacent infrastructure opportunities including wayside amenities and renewable energy-linked EPC projects such as EV charging infrastructure.
- →Wayside amenities involve developing facilities like fuel stations, food courts, and truck parking along highways, often under PPP models with long-term contracts (5-30 years).
- →EV charging stations have already been commissioned in Indore, with plans to explore more, although selective entry is emphasized with margin discipline.
- →The company expects its balance sheet to support capex for these ventures, with decisions taken thoughtfully over time due to the long-term nature.
- →Real Estate is growing as a monetization lever, particularly in hospitality and leased commercial assets.
- →No explicit new large-scale capex announced; focus remains on capital efficiency, selective bidding, and disciplined growth.
- →Overall approach is calibrated entry into new verticals with a focus on sustainable margins rather than aggressive expansion.
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