H.G. Infra Engg. Q2 FY27 Results (NSE: HGINFRA)
Signal: Steady quarter
The read
The standalone trajectory is mixed: revenue contracted 23.5% YoY to 8,832.19 million and PAT fell 52.3% to 321.31 million, but material intensity improved 498bps and operating margin recovered 337bps sequentially to 11.86%; higher finance cost of 508.79 million and weaker operating profit kept earnings under pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| EBIT margin | N/A |
P&L walk
Consolidated financial-statement figures are not included in the supplied filing text, so no consolidated P&L trend is stated.
Segments
The company reports one Construction segment, which generated revenue of 8,832.19 million, down 23.5% YoY, and segment result of 719.90 million, down 36.0% YoY; no segment diversification is disclosed to offset the slowdown.
Key positives
- Standalone material cost declined to 31.86% of revenue from 36.84% YoY, a 498bps gross-margin tailwind; the filing does not identify the cause.
- Operating margin recovered to 11.86% from 8.49% QoQ, while segment result rose 54.7% QoQ to 719.90 million.
- Net debt declined 667.53 million from March 31, 2026 to 14,319.97 million, and the debt-equity ratio improved to 0.48x from 0.50x at year-end.
Key concerns
- Revenue declined 23.5% YoY to 8,832.19 million and segment result declined 36.0% YoY to 719.90 million.
- PAT fell 52.3% YoY to 321.31 million as finance cost rose 29.4% YoY to 508.79 million and interest coverage declined to 2.17x from 3.65x.
- Operating cash flow was only 185.55 million in H1FY27 versus 375.96 million in H1FY26, while contract assets increased to 21,649.51 million.
- Contract assets of 21,649.51 million and current trade receivables of 10,005.47 million remain material relative to H1 revenue of 17,904.55 million.
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