Company Overview
H.G. Infra Engineering Limited (CIN: L45201RJ2003PLC018049) will hold its 24th Annual General Meeting on August 19, 2026, through video conference to approve financial statements and declare a final dividend of ₹2.00 per share. The company reported challenging FY26 results with consolidated revenue of ₹52,346.74 million (up 3.53% YoY) but net profit declining 35% to ₹3,298.09 million due to margin pressure and increased finance costs.
Financial Performance
Standalone Performance (FY 2025-26):
- Revenue from Operations: ₹5,666.68 crore (decreased 6.37% YoY)
- Profit After Tax: ₹389.14 crore (decreased 32.57% YoY)
- EBITDA: ₹733 crore with EBITDA margin of 12.94% (down from 15.71%)
- EPS: ₹59.71 (decreased from ₹88.55)
Consolidated Performance (FY 2025-26):
- Revenue from Operations: ₹52,346.74 million (increased 3.53% YoY)
- Profit After Tax: ₹3,298.09 million (decreased 34.74% YoY)
- Total Assets: ₹109,010.24 million
- Total Borrowings: ₹53,996.22 million
- Net Debt-to-Equity: 166% (worsened from 139% YoY)
- EPS: ₹50.61 (decreased from ₹77.55)
Business Operations and Order Book
The company secured new orders worth ₹4,504.25 crore during FY26 and concluded the year with a diversified order book exceeding ₹10,000 crore across roads, railways, and energy segments. Strategic diversification continued with entry into power transmission (three projects with ₹1,460 crore EPC value) and progress on 735 MW BESS projects. Revenue composition shifted significantly to 86% from government agencies (65% in FY25).
Subsidiary Structure and Divestments
The Group has 104 subsidiaries including 74 SPVs for infrastructure projects. During the year, the company divested 100% of H.G. Khammam Devarapalle PKG-2 Private Limited (gain ₹419.36 million) and 49% of H.G. Khammam Devarapalle PKG-1 Private Limited (gain ₹292.07 million), recording exceptional gains of ₹510.35 million total.
Covenant Breaches and Financial Position
The company breached financial covenants for working capital loans (Total outside liabilities/Adjusted Tangible Net Worth) and unsecured NCDs (Interest Cost Capping and Cash Flow Coverage), requiring reclassification of ₹4,000 million NCDs to current borrowings. Net debt increased to ₹54,293.65 million from ₹41,033.33 million YoY.
ESG and Corporate Responsibility
The comprehensive Business Responsibility Report disclosed 13 material ESG risks including climate change, GHG emissions, biodiversity, labor standards, and anti-corruption. CSR expenditure totaled ₹134.97 million focusing on education, healthcare, skill development, and environmental sustainability (287,629 trees planted).
Regulatory and Legal Matters
The Central Bureau of Investigation conducted searches at company offices and the CMD's residence on January 21, 2026, confiscating ₹1.70 million in cash. Based on management's assessment, no financial impact has been recognized in the statements. Contingent liabilities stood at ₹1,158.55 million including disputed tax demands.
Related Party Transactions
Extensive related party transactions totaled ₹56,435.23 million in revenue. Promoters provided personal guarantees totaling ₹318,671.82 million and loans of ₹1,175.60 million were taken from Key Management Personnel.
Outlook and Targets
The company targets ₹11,000-12,000 crore of order inflows for FY27 and remains optimistic about opportunities across India's infrastructure sector driven by government capex, urbanization, and energy transition, despite current financial challenges.
Credit Ratings
ICRA reaffirmed credit ratings at [ICRA]AA- (Positive) for long-term facilities and [ICRA]A1+ for short-term facilities, reflecting strong order book visibility despite near-term pressures.