H.G. Infra Engineering Ltd (HGINFRA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to H.G. Infra Engineering Limited Q2 FY27 earnings conference call hosted by Go India Advisors. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Saloni from Go India Advisors. Thank you, and over to you, ma'am.
Saloni (Go India Advisors): Good afternoon everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the quarter two and first half of FY27 operational and financial performance hosted by Go India Advisors. We have on call Mr. Harendra Singh, Chairman and Managing Director, Mr. Vikas Jain, CFO. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces. We now request Mr. Harendra Singh to take us through the company's business outlook and performance, subsequent to which we will open the floor for the Q&A. Thank you, and over to you, sir.
Harendra Singh (H.G. Infra Engineering Ltd): Thank you, Saloni. Good evening to everyone. Let me begin by wishing you and your families a very Happy Diwali and a prosperous New Year ahead. May the coming Samvat bring happiness, success, and prosperity to all. India is progressing towards its vision of becoming a 7 trillion USD economy by 2030 and 30 trillion USD economy by 2047, and the infrastructure development will play a very critical role
Harendra Singh (H.G. Infra Engineering Ltd): achieving these ambitious target. With sustained government focus on increasing investment in by both public and private sectors, the government is witnessing the country is witnessing significant opportunities across roads, rails, power and urban infrastructure. At HG Infra, we believe infrastructure development is not just about building physical assets. It is about connecting people, enabling businesses, and creating opportunities for economic growth. With our presence across 14 states and capabilities spanning roads, rail, metro, renewable, and emerging infrastructure segments, we continue to strengthen our position as a diversified infrastructure company. Let me be briefly touch upon the key sectoral developments and opportunities. Roads and highways remain to be our core business segment supported by government sustained focus on highway expansion, improved connectivity and infrastructure development under National Highway Vision 2047. We expect this segment to continue offering meaningful bidding and order inflow opportunities. The government's continuous focus on the rail modernization, capacity expansion and metro connectivity is creating significant opportunities for us. We are strategically strengthening our presence in this segment through our ongoing rail and metro projects and looking into many opportunities as a pipeline. Regarding renewables and green energy, with India's green energy transition this is opening new avenues beyond solar generation particularly in transmission infrastructure and energy storage. We we see significant long-term opportunities in transmission and distribution as well as BESS which are expected to play an important role in strengthening the country's power infrastructure. Overall, we remain confident about the long-term infrastructure growth story and the opportunities emerging across our focus segments. Our strategy to is to leverage our execution capabilities, diversify our business portfolio and pursue quality projects while maintaining financial discipline and operation efficiency. Now, to begin with a glimpse of our operational highlights. As of September 26, the company's order book stood at 13,685 crores, comprising 8,792 crores from roads and highways, 208 2,883 crores from rails and metro, 610 crore from renewable projects, including BESS, and 1,400 crore from transmission and distribution. The segment-wise road highway contributes like 64% and railway 24 21. Remaining 15 is from renewables and transmission projects. And the update on the EPC project, as of now the Ganga Expressway and the UER has been completed, and the completion certificate of UER with effect from 28th February 2025 being received on 23rd September '26. And very recently, we have received the completion certificate for Ganga Expressway as well. The Jamshedpur Elevated Road Project is progressing well with 70.82% of the progress. The Neelmangala Tumkur Project has achieved 73.64 completion 64% completion and is progressing towards timely completion and likely to be finished by March 27. The DRL Project is in an early stage with 6% completion only because the land-related constraint, the progress is expected to improve in the coming months. The Pune-Shirur Projects, awarded by Welspun at a cost of 3,931 crore, is currently in the mobilization stage with work is expected to pick from Q3 FY27 onwards once we will we are getting the appointed date, which is likely to be there within a month. Regarding the HAM project, the Karnal Ring Road project has achieved 99% completion and the company has already applied the provisional completion certificate, which is expected to be there anytime. And the COD is targeted in Q4 '27. As informed in the previous quarter, the provisional completion certificate for Raipur-Visakhapatnam Corridor, OD-5, 6 and AP-1 has been received. And also, Khammam-Devarapalli packages 1 and 2 already we have received last year, with the COD of this project is expected in Q3 and Q4 of FY27. The Tirupati-Chennai HAM project has achieved 71.8% completion and is progressing well with the target to complete by 31st March '27. Varanasi-Kolkata Package 13 has achieved 47% financial progress, and Package 10 has reached 18.6% completion. The Kosi Parikrama Package 6, Ayodhya, has achieved 42.4% completion and is progressing as planned. The Narol-Sarkhej project has achieved 54.8% completion and remains on track for timely completion. For the Gobindpur-Tangi Capital Ring Road Project of Odisha, that is Package 3, the company has signed the contract agreement on 24th April '26. The land acquisition is in an advanced stage and the appointed date is expected anytime within a month. Turning into the progress of railway projects, the DMRC metro projects has been 100% is 100% completed and just handover process is going on. The Bilaspur Himachal Pradesh railway project has achieved is has achieved
Harendra Singh (H.G. Infra Engineering Ltd): 1.3% completion is targeted for completion in quarter 3 of FY27. The Kanpur Railway Station Project has achieved 58.85% completion, though there has been certain delays because of the blocks not available, so the company has applied for extension of time, which has been approved in principle for up to December '27. The Dhule-Nardana Railway Project has achieved 30 37.6% completion, and the company has applied for the extension of time in this project also because there's almost 11 km land is not available as of now. The Gaya-Son Nagar Project and Karanja Project have achieved 56.2 and 67.2 percent completion, and this non-availability of work fronts also in these projects, the company has requested extension on both these projects. The New Delhi Railway Station Project initially faced delay due to land clearances. Now, it has gradually has picked up, with completion is reaching at 18.36%. For Thane Metro project, the appointed date with has been declared as 11th January '26, however the project is facing challenges related to land availability and local social issues also, socioeconomic issues. So, the authority is working aggressively to resolve these issues. Anuppur-Mirzapur Anuppur and Anuppur and Mirzapur thermal projects are currently in the mobilization phase, with 2.43% and 1% completion respectively. Update on solar project has been as of 30th September '26. The company solar project reached approximately 96% completion, while heavy monsoon, transmission line, land acquisition, local disruption has caused execution delays, but these hurdles are now being actively resolved and the company is deploying necessary resources to meet revised contractual timeline over in next to be completed in next few months only. Financially, 89% of the required project debt is sanctioned and remaining 215 plus crore balance is slated for release in quarter 3 and quarter 4 FY27, following the plant commissioning. Operationally, the company invoice DISCOM around 80 crores in this financial year from 141 active plants and is targeting 250 crore plus turnover annual turnover, once all the plants are commissioned. Regarding the BESS project, the company has already executed binding agreement with GUVNL and NVVN for three BESS projects. This is around 1,470 megawatt hour. Procurement of long long lead items in place, including the including BESS and PCS, so progress with a delivery expected by January '27. Civil works at Banaskantha and Dholera are approximately at 80 and 50% completed, respectively, with the major message material already received. For Chorania, land-related formalities and design activities are progressing, and a in-principle bank sanction has been received. So, these three projects are expected to generate annual revenue of approximately 225 crores upon commissioning. So, we are expecting that these two projects would be commissioned by March, and followed by Chorania somewhere in June '27. So, regarding the power transmission projects, the company is advancing its power transmission portfolio across Odisha, Uttar Pradesh and Jharkhand, where the progress across across regulatory approval, engineering procurement and on-ground execution is started. TSAs has been executed for all three projects. At Angul, Odisha, part of ROW already has been received, and the foundation work is in progressing, and the tower erection is going on very smoothly. At Jamshedpur, Jharkhand, route alignment has been completed, and with the land acquisition underway. Also, in Mirzapur, Uttar Pradesh, land has been identified, the lease agreement with the concerned authority is under execution. The engineering and procurement activities are progressing across all these projects, and for Angul we have received the financial closure, and the for other two projects, financial closure is targeted to be achieved in coming quarter. This is the update regarding five new HAM sorry assets, which has been monetized. So, during quarter two company has successfully transferred 51% of its shareholding in OD5, receiving partial consideration of 103 crores. The remaining holdback amount are expected to be received during quarter three and quarter four of FY27, subject to achievement of respective commercial CODs and completion of certain punch list item. In Q2 FY27, the company also received an amount of 92.3 crore rupees against partial release of holdback in all four earlier assets. Cumulatively, the company has received a total amount of 857.46 crore till September '26, out of the total consideration. The balance consideration is expected to be received in quarter three and quarter four, and subject to final COD and completion of relevant conditions. With respect to fifth HAM asset, Raipur-Visakhapatnam AP 1, the company has already received the NOC from NHAI and lenders, and expect to complete the equity transfer of AP 1 project in quarter 2 FY27. Regarding equity requirement of all projects, the total equity requirement for all HAM, transmission, BESS and solar is around 3,050 crore.
Harendra Singh (H.G. Infra Engineering Ltd): FY28 and FY27. Moving on to the financial highlights of quarter two and first half of this year. At standalone, revenue has reached to 883 crores with an EBITDA of 105 crore and EBITDA at EBITDA margin of 11.9%. with the PAT of quarter two at 32 crores at the margin of 3.6% compared to 67 crore and at a margin of 5.8% in quarter two FY26. Revenue for first half FY27 reached 1,790 crore with an EBITDA of 182 crore at EBITDA margin of 10.2%, and PAT for the first half FY27 stood at 60 crore with a PAT margin of 3.4% compared to 193 crores and a margin of 6.7% in first half FY26. On a standalone basis, our gross debt stands at 1,595 crore. This comprises 714 crore of working capital debt, 400 crore of NCD, and 482 crore of term loans and current maturities, along with credit limits and other means of debt. With an expected collection from receivable monetization proceeds, we are targeting to close our standalone debt at 900 crore by the end of this year. Now, regarding the consolidated financials, revenue of quarter two FY27, which is a which reached to 974 crore with an EBITDA of 250 crores and EBITDA margin of 25.6%. And PAT for FY quarter two FY27 stood at 80 crore with a PAT margin of 8.2% compared to 52 crore at a margin of 5.7% in quarter two FY26. Revenue for first half FY27 reached 2,074 crore with an EBITDA of 553 crore at an EBITDA margin of 26.7%. PAT for first half FY27 stood at 35 crore with a PAT margin of 1.7% as compared to 151 crore and at a margin of 6.3% in first half of FY26. As we are targeting and their order inflow of 10,000 to 11,000 crore FY27 with approximately 5,500 crore secured of two quarter to FY27, our growth prospects remain strong across roads, rails, metros and power transmission, supported by upcoming infrastructure investments and the government's initiatives. We will continue to focus on high-quality projects, disciplined bidding, and timely execution while expanding our presence in emerging infrastructure segments. With a diversified project pipeline and the student financial management, we are well positioned to drive sustainable growth that deliver long-term value to our stakeholders. I will now handover our call to our IR Advisor and request them to open the floor for Q&A session. Thank you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vaibhav Shah from JM Financial. Please proceed with your question.
Vaibhav Shah (JM Financial): Yeah. Sir, on asset monetization, so we have already monetized 100% stake in four assets. So, initially, we had mentioned that 1,384 crore is the equity value. So, roughly, the gain would be something around 530 crores because the investment is around 850 odd crores. So, what will be the tax impact on it, and when will we receive that amount in the P&L? Because we have not seen any major accruals in the on the P&L side in standalone accounts till now.
Harendra Singh (H.G. Infra Engineering Ltd): Basically, as we have accounted in last two quarters, we have seen that these are the four projects which we already have monetized, so there is not a gain into equity, because the net worth of all those four assets, so at least at least in OD 5 and 6, the data there we have incurred significant loss in that net worth. So, the collection has almost 55 550 crores of collection is yet to happen out of the four projects and one project which is yet to be monetized, like, AP 1. So, this 550 crores of collection is yet to be there, which is we are expecting in quarter three and quarter four.
Vaibhav Shah (JM Financial): And, sir, once that collection happens, then what would be the gain which we'll be booking in the standalone accounts?
Harendra Singh (H.G. Infra Engineering Ltd): Standalone would be around 70 odd crore rupees, which is likely to be there in quarter three or rather in quarter four.
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