Highway Infrastructure Limited: Q3 & 9M FY26 Performance Highlights

Highway Infrastructure Limited (HIL), an integrated infrastructure development and management company, has reported a robust performance for the third quarter and nine months ended December 31, 2025. The company, with its diversified operations across tollway collection, EPC projects, and real estate, has demonstrated significant growth in profitability and order book, underscoring its strategic positioning in India's burgeoning infrastructure sector.

For the nine-month period (9M FY26), HIL recorded a consolidated total income of INR 356.2 crore. While this reflects a slight year-on-year adjustment, the company's focus on operational efficiency has translated into impressive profitability gains. Consolidated EBITDA for 9M FY26 surged by a remarkable 65.2% year-on-year to INR 35.4 crore. The Profit After Tax (PAT) for the same period witnessed an even more substantial increase of 121.5% year-on-year, reaching INR 23.1 crore. This strong financial showing is a testament to HIL's disciplined execution and strategic initiatives.

Strategic Momentum and Order Book Surge

A key highlight of the quarter is HIL's record-breaking consolidated order book, which reached INR 1,160 crore as of January 2026. This represents an impressive approximately 50% growth from September 2025, significantly enhancing the company's revenue visibility. The tollway collection segment, in particular, has seen a phenomenal expansion, with its order book surging by 181% since September 2025 to INR 536.5 crore. This includes the largest-ever single toll collection contract for the Kaza Fee Plaza on NH-16 in Andhra Pradesh, valued at INR 328.8 crore.

The EPC infrastructure segment also contributed significantly, with its order book increasing to INR 623.6 crore. The company's strategy of focusing on government projects, which constitute about 77% of its EPC order book, ensures better execution certainty and payment security, thereby de-risking its revenue streams. Management has guided that projects worth INR 400-450 crore from the current EPC order book are targeted for completion within the next two years, providing clear execution visibility.

Diversified Growth Strategies and Market Opportunities

HIL's growth strategy is multifaceted, focusing on expanding into adjacent infrastructure verticals and selectively broadening its geographical footprint. The company is actively evaluating opportunities in renewable energy EPC, EV charging networks, ropeway operations, and mobility-adjacent commercial services. These initiatives are aimed at diversifying income streams, boosting cyclicality, and enhancing HIL's role in the broader mobility ecosystem.

Geographical expansion is another cornerstone of HIL's strategy. While already present in 11 states and 1 Union Territory, the company is targeting high-growth states like Gujarat, Rajasthan, and the wider North-East regions for further expansion. This move is designed to reduce concentration risk and broaden its addressable market. The management also mentioned evaluating selective entry into Jammu and Kashmir and Kerala, indicating a proactive approach to market penetration.

Financial Discipline and Future Outlook

HIL maintains a disciplined balance sheet, which is crucial for sustainable growth. The company's Debt to Equity ratio stood at a healthy 0.61x in FY25, with Return on Equity (ROE) at 19.1% and Return on Capital Employed (ROCE) at 16.7% for the same period. Net Cash & Cash Equivalents are strategically utilized for working capital requirements, ensuring liquidity and operational stability.

The outlook for HIL remains positive, supported by a strong government push for infrastructure development. The Union Budget 2026-27 allocated INR 3.1 lakh crore to the Ministry of Road Transport and Highways, an 8.0% year-on-year increase. India's toll collection is projected to surge from INR 55,000 crore to INR 1.4 lakh crore within two years, driven by highway expansion, wider toll coverage, and FASTag adoption. HIL, with its asset-light model and technological advancements in toll operations, is well-positioned to capitalize on these industry tailwinds.

In conclusion, Highway Infrastructure Limited's Q3 and 9M FY26 performance reflects a company in a strong growth phase, driven by a record order book, robust financial performance, and a clear strategic roadmap. The management's focus on diversification, technological integration, and disciplined financial management positions HIL to continue its upward trajectory in India's dynamic infrastructure landscape.