H G Infra Engineering anticipates a sharper second-half recovery following a challenging first quarter, with improved project execution and strategic asset monetisation set to boost revenue and reduce debt in FY27.
H G Infra Engineering said it expects a sharper second-half recovery after a weak start to FY27, with chairman and managing director Harendra Singh blaming the first-quarter slowdown on delayed project handovers, slow land clearances, approval bottlenecks and supply disruptions in key inputs such as bitumen and high-speed diesel. He said most of those issues are now easing and that the company is aiming for a stronger performance in the July-September period and beyond, helped by improved execution on highways, rail and clean energy work.
The company is guiding for revenue of INR6,000 crore to INR6,500 crore in FY27 and an EBITDA margin of 13.5% to 14%. Singh told analysts that second-quarter revenue should be about INR1,000 crore, before a much stronger run-rate in the final two quarters. He pointed to expected contributions from the Pune-Shirur highway project, the Odisha Capital Ring Road, BESS and transmission contracts, and rail projects including new awards from the Adani Group.
Even after the weak quarter, the order book stood at INR14,502 crore at the end of Q1 FY27, with the largest share still coming from roads and highways. Singh said roughly INR6,000 crore of that book is not yet executable because of pending approvals, land acquisition issues and appointed dates. He said the company has bid for about INR22,000 crore of HAM and highway work and another INR4,000 crore in rail projects, while targeting FY27 order inflows of INR11,000 crore to INR12,000 crore.
The earnings call also highlighted progress on monetising hybrid annuity model assets. Singh said H G Infra has already received about INR660 crore from the sale of stakes in KD1, OD5, OD6 and AP1, and expects total collections of around INR850 crore by year-end, including the Karnal project. He said those proceeds, together with operating cash flow and solar debt releases, should help cut standalone gross debt from INR1,834 crore to about INR900 crore by the end of FY27. That would build on the company’s reported Q1 performance, which Moneycontrol said included a 13.76% rise in turnover to INR1,203.59 crore, a 21.84% increase in EBITDA to INR196.69 crore and a 61.31% jump in net profit to INR116.87 crore.
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