Highway Infra Q1 FY27 Results (NSE: HILINFRA)
Signal: Margin pressure
The read
The trajectory inflected sharply from Q4FY26's 4.92% OPM to Q1FY27's 1.6% EBITDA margin despite revenue accelerating 170.9% YoY to ₹3032.82 million; the key thesis risk is that the revenue surge is not translating into operating profit, with EBITDA down 60.0% and PAT down 85.3%, while other income accounted for 67.5% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹303.28 Cr | 170.9% | +10.4% |
| EBIT | ₹4.12 Cr | -64.1% | |
| Net profit | ₹1.06 Cr | -85.3% | |
| EPS | ₹0.16 | -87.2% | |
| EBIT margin | 1.6% |
P&L walk
Consolidated revenue rose to ₹3032.82 million, +170.9% YoY, but EBITDA fell 60.0% to ₹48.2 million and EBITDA margin contracted to 1.6% from approximately 10.3%, while PAT declined 85.3% to ₹10.6 million; other income of ₹10.4 million represented 67.5% of PBT.
Segments
The toll division drove the group with ₹2739.45 million of revenue and ₹54.87 million of segment result, while the work-contract and equipment-hire division added ₹597.64 million of revenue and ₹42.70 million of result; the reported real-estate revenue was negative ₹304.27 million, indicating a material offset to the operating mix.
Key positives
- Consolidated revenue reached ₹3032.82 million, up 170.9% YoY, led by toll revenue of ₹2739.45 million and work-contract/equipment-hire revenue of ₹597.64 million.
- The toll division generated ₹54.87 million of segment result and the work-contract/equipment-hire division generated ₹42.70 million, providing positive contribution despite consolidated margin pressure.
- IPO proceeds of ₹828.84 million were reported as fully utilized, with total utilization of ₹832.37 million including interest income and nil balance in the monitoring account.
Key concerns
- EBITDA declined 60.0% YoY to ₹48.2 million and EBITDA margin contracted approximately 870bps to 1.6% despite 170.9% revenue growth, showing poor conversion of top-line growth into operating profit.
- PAT declined 85.3% YoY to ₹10.6 million and EPS declined 87.2% to ₹0.16, making earnings momentum materially weaker than revenue momentum.
- The real-estate segment reported negative revenue of ₹304.27 million, partially offsetting the toll and work-contract divisions and adding volatility to the consolidated mix.
Earnings quality: includes non-operating other income
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