At a Glance
G R Infraprojects Ltd (GRIL) reported Q1 FY26 consolidated PAT of ₹244 crore, up a healthy 30.9% YoY, while revenue dipped slightly to ₹1,988 crore. The stock is lounging at ₹1,215, barely moving (-0.26%) as if it’s on a speed breaker. The company’s operating margin dropped to 20% (from 24%), but it still outperforms many peers in profit per kilometer. The board also decided to spice things up by altering its MOA object clause to expand business avenues—because why stick to roads when you can pave anything, including your own destiny?
Introduction
Once upon a time in 1995, a small EPC contractor started laying roads. Fast forward to 2025, G R Infraprojects is a nationwide infrastructure player executing EPC, BOT, and HAM projects. They build everything from highways to ropeways—basically, if it’s made of concrete, they’re on it. Yet, the company’s stock performance is as bumpy as NH44 after a monsoon.
The past year was not exactly rosy: sales growth over five years is a dull 3%, and TTM sales are 14% lower than last year. However, profits are holding up thanks to cost management and diversified revenue streams. Investors now stare at the big question: will GRIL’s fresh diversification plans save it from the slump, or will it remain stuck at the toll gate?
Business Model (WTF Do They Even Do?)
GRIL thrives on government contracts. Its bread-and-butter is EPC road construction, executed across 15 states. The company also loves acronyms: BOT, HAM, DBFOT, BOOT – no, these are not startup lingo; they’re contract models where GRIL either builds and hands over or builds and collects annuities/tolls. Recently, they’ve also dipped into railways, metros, ropeways, and logistics parks.
Here’s the catch: EPC is a low-margin, high-competition game, while BOT/HAM requires heavy upfront capital and patience thicker than a highway median. The good news? GRIL knows how to squeeze margins even in this cutthroat environment, thanks to in-house design, project execution, and owning equipment instead of renting it.
Financials Overview
Q1 FY26 Performance
- Revenue: ₹1,988 crore (YoY -2.09%)
- EBITDA: ₹398 crore (EBITDA Margin 20%)
- PAT: ₹244 crore (YoY +30.9%)
- EPS: ₹25.23 (TTM EPS ₹114)
Annual Performance (FY25)
- Revenue: ₹7,395 crore
- PAT: ₹1,015 crore
- Margins: OPM 22%, PAT Margin 13.7%
Commentary:
Revenue dipped because execution slowed in certain projects (maybe too many traffic jams at sites), but profit rose thanks to lower tax and improved interest costs. Debt still looms at ₹4,971 crore, but manageable.
Valuation
Let’s do some quick math, not the boring MBA stuff:
- P/E Method
- TTM EPS: ₹114
- Sector P/E: ~20 (peers like Kalpataru, KEC are higher)
- Fair Value Range: ₹1,800–₹2,200
- EV/EBITDA Method
- EV/EBITDA multiple: 7–8x
- EBITDA (TTM): ₹1,666 crore
- EV ≈ ₹12,000–₹13,300 crore
- Less debt, fair value per share ≈ ₹1,500–₹1,700
- DCF (Back-of-the-Napkin)
- Assume 5% growth, 10% discount
- Fair Value ≈ ₹1,600–₹1,900
Final Range: ₹1,500–₹2,200 (current price ₹1,215 = undervalued but needs catalysts).
What’s Cooking – News, Triggers, Drama
- MOA Expansion: Board approved diversifying beyond roads—rumors of eyeing urban infrastructure and renewables.
- HAM Portfolio: Several under-construction projects nearing completion could unlock annuity cash flows.
- Order Book: Healthy, but new order inflows are critical.
- Stock Sentiment: Investors still cautious due to sluggish growth and high debt.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 14,929 |
| Liabilities | 6,486 |
| Net Worth | 8,491 |
| Borrowings | 4,971 |
Remarks: Auditor’s inner voice – “Debt’s still a bit spicy, but at least they’re not financing highways on personal credit cards.”
Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | -371 | -363 | -1,592 |
| Investing | -340 | -9 | 795 |
| Financing | 246 | -20 | 1,120 |
Remarks: Operating cash flow is negative, meaning project execution is sucking cash like a vacuum cleaner. Financing inflows are keeping them afloat.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 12.7% |
| ROCE | 14.4% |
| P/E | 10.9 |
| PAT Margin | 13.7% |
| D/E | 0.59 |
Remarks: Ratios are decent but not drool-worthy. ROE and ROCE dipped, showing returns on capital are slowing.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 9,482 | 8,980 | 7,395 |
| EBITDA | 2,554 | 2,122 | 1,636 |
| PAT | 1,454 | 1,323 | 1,015 |
Remarks: The road to profits has speed bumps; revenue is falling, margins are narrowing, but profits still holding due to cost control.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| L&T | 2,64,293 | 15,544 | 31.7 |
| Kalpataru | 22,315 | 562 | 34.1 |
| KEC Intl | 22,357 | 608 | 36.1 |
| GR Infraprojects | 7,395 | 1,015 | 10.9 |
Remarks: GRIL trades at a steep discount to peers. Bargain or value trap? Jury’s out.
Miscellaneous – Shareholding, Promoters
- Promoters: 74.7% (stable)
- FIIs: 2.9% (slowly increasing)
- DIIs: 19.3% (strong support)
- Public: 3.1% (retail folks sipping tea, waiting)
Promoters still have skin in the game, which is comforting unless they’re planning to diversify into selling popcorn.
EduInvesting Verdict™
G R Infraprojects is like that highway you drive on at night: smooth for long stretches, but with sudden potholes. The company’s profitability is strong, and valuation looks cheap compared to peers. However, revenue decline, negative cash flows, and a debt load keep the stock from zooming.
SWOT Analysis
- Strengths: Strong execution, healthy margins, diversified order book.
- Weaknesses: Sluggish revenue growth, negative cash flows.
- Opportunities: Urban infra diversification, annuity cash flows, HAM completion.
- Threats: High competition, execution delays, interest rate risks.
Final Word: GRIL is undervalued but needs a strong trigger (like new mega orders or debt reduction) to rerate. Until then, investors must channel zen-like patience—because this highway to returns has many toll gates.
Written by EduInvesting Team | August 02, 2025
SEO Tags: G R Infraprojects, GRIL Q1 FY26 Results, GR Infra Analysis, Infrastructure Stocks India
