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• G R Infraprojects Limited (GRIL) */

GR Infraprojects Q4 FY26: Growth in Revenue, Pressure on Margins, and a Bigger Diversification Push

G R Infraprojects Limited (GRIL) closed Q4 FY26 with stronger standalone revenue but visibly lower margins. On a standalone basis, revenue from operations rose to INR 2,520.9 crore in Q4 FY26 from INR 1,990.4 crore in Q4 FY25, while total income increased to INR 2,619.7 crore. EBITDA for the quarter stood at INR 273.4 crore with an EBITDA margin of 10.85 percent, down sharply from 17.51 percent a year ago. Management attributed the year-on-year margin compression largely to one-time claims income booked in Q4 FY25 and higher construction costs in FY26.

The quarter also contained an important non-core driver: GRIL continued its asset monetisation programme through Indus Infra Trust (InvIT). The investor presentation explicitly notes that Q4 FY26 PAT and PAT margin are presented excluding an exceptional gain of INR 181.7 crore (net of tax) related to the sale of three operational HAM projects to the InvIT. In the earnings call, management also highlighted exceptional gains linked to the sale of four subsidiaries to the InvIT.

Financial performance: standalone growth, but normalised profitability looks lower

For FY26, standalone revenue from operations increased to INR 7,620.2 crore from INR 6,515.6 crore in FY25. However, standalone EBITDA margin for FY26 is shown at 10.90 percent (basis total income), lower than 13.88 percent in FY25. Management described the FY25 margin base as benefiting from one-time claims income, while FY26 faced higher construction costs.

Cash flow performance was a clear contrast to the P&L. Net cash flow from operating activities for FY26 was negative at INR 18.9 crore, compared with INR 868.2 crore in FY25. Management linked the working capital and cash flow profile to the company’s move into newer sectors and the need for higher upfront investment in the early phases of these projects.

Note: PAT includes exceptional items in the reported numbers; the presentation highlights PAT and margin commentary excluding exceptional gains from InvIT asset sales.

Order book strength remains the anchor

GRIL’s order book stood at INR 26,471.5 crore as of 31 March 2026 (excluding GST). The mix remains heavily oriented to the roads ecosystem, with a client-wise concentration toward NHAI at 62 percent of the order book. State-wise, the order book is diversified across multiple states, with Madhya Pradesh (28 percent) and Maharashtra (14 percent) among the larger contributors.

Management stated that during FY26 the company secured new orders of about INR 10,700 crore, including three projects in Q4 aggregating to around INR 5,500 crore (one tunnel project and two HAM road projects). The company also noted that the appointed date for a DBFOT project worth around INR 3,600 crore is awaited.

Execution, however, is being shaped by a familiar sector constraint: land and appointed date delays. In the Q&A, management explained that land aggregation is increasingly challenging and that execution slows when land is received in fragmented patches rather than continuous stretches. They added that appointed date delays have also affected execution plans, and that provisional appointed dates have sometimes been issued with lower land availability than earlier norms.

Balance sheet: low standalone leverage, higher consolidated project debt

GRIL continues to highlight balance sheet discipline as a competitive advantage. On a standalone basis, debt to equity has been stable at very low levels, and standalone net debt to equity was shown at 0.00 across multiple quarters up to March 2026. Historical standalone metrics in the presentation show net debt to equity improving to 0.03 in FY26 and net debt to EBITDA at 0.18.

Working capital metrics moved in the opposite direction. Net working capital days rose to 128 days at March 2026 from 117 days at March 2025, driven mainly by higher receivable days (107 days versus 96 days). Management disclosed that standalone trade receivables were INR 237.2 crore at March 2026, including INR 166.7 crore of HAM debtors.

Diversification: a broader sector map for FY27 order wins

A key message from management is that GRIL’s growth strategy is no longer road-only. In the earnings call, the company highlighted opportunities across metro and railways, power transmission, battery energy storage systems, telecom infrastructure, oil and gas, logistics and warehousing, ropeways, tunnels and hydro.

This shift also shows up in the FY27 order intake targets. Management guided for total FY27 order wins of around INR 20,000 crore to INR 22,000 crore and also provided a sector-wise split of target wins:

• Roads: INR 12,000 crore to INR 14,000 crore
• Power transmission: around INR 5,000 crore
• Tunnels and hydro: INR 2,000 crore to INR 3,000 crore
• Oil and gas: INR 2,000 crore to INR 3,000 crore
• Other sectors including ropeway, telecom and renewables: INR 1,000 crore to INR 2,000 crore

On revenue, management guided for about 15 percent growth in FY27. Capex for FY27 was guided at INR 300 crore to INR 350 crore, higher than the roughly INR 100 crore annual capex management referenced for recent years. Management said depreciation should remain broadly stable because older equipment will be recycled.

Monetisation via InvIT: ongoing but valuation depends on cash flows

GRIL has made InvIT monetisation a recurring capital strategy. The investor presentation states that the company transferred 13 operational HAM assets to Indus Infra Trust, and that in the current quarter certain projects were transferred. In the call, management said asset transfers are ongoing and that they expect to transfer at least three to four eligible projects in FY27.

When asked about valuation, management said transfers are based on discounted cash flow and market conditions, not a fixed multiple. They also indicated a broad range of 1.25 to 2.25 (context: valuation range) and separately cited a price-to-book value of about 1.18 to 1.2 for the specific SPVs transferred.

Key risks discussed: margins, land, and geopolitics-linked cost shocks

Margin volatility is being explained as a function of two forces: a tougher bidding environment and input cost uncertainty. Management stated that competition has led to projects being bid significantly below authority estimates, and that while escalation exists, it does not fully cover abnormal cost spikes in diesel and bitumen.

In the call, management quantified the exposure by stating that around 30 to 40 percent of road sector costs are impacted by fuel and bitumen related effects. They also noted that in oil and gas projects, the company is targeting margins of about 8 to 10 percent, while acknowledging that it is still learning the sector.

Closing takeaways

GRIL’s FY26 narrative is best read as a transition year. The company delivered revenue growth, maintained low standalone leverage, and kept a large order book. At the same time, margins normalised lower versus a base that included one-off claims income, operating cash flow weakened materially in FY26, and working capital expanded.

For FY27, management is positioning for a step-up driven by both core roads and a broader set of infrastructure verticals, with explicit order intake targets and a revenue growth guidance of around 15 percent. The market will likely track three operating signals closely: appointed dates and land availability for fresh projects, margin stability amid fuel and bitumen volatility, and whether diversification improves cash conversion rather than stretching working capital further.