01 — At a Glance
The Company That’s Better Than Its Stock Price Would Have You Believe
- Q3 FY26 Revenue₹1,421 Cr
- Q3 FY26 PAT₹94.3 Cr
- Q3 EPS₹14.47
- Annualised EPS (Q3×4)₹57.88
- FY25 Full-Year EPS₹77.56
- Book Value₹474
- Price to Book1.04x
- Debt / Equity1.84x
- Order Book (Dec’25)₹13,624 Cr
- Order Book / Market Cap4.29x
The Headline That Matters: HG Infra delivered ₹1,421 crore Q3 revenue with ₹94 crore PAT (6.6% margin). Not bad for a company where the stock fell 55% in one year. The order book sits at ₹13,624 crore — a 4.29x cover on market cap. Meanwhile, the CBI made an unexpected visit in January 2026, leading to bail for the CMD and management’s repeated assurance that “operations are unaffected.” Sure. That’s what they always say. Let’s see what the numbers tell us.
02 — Introduction
Welcome to the Infrastructure Circus: Where Monsoons Matter More Than Spreadsheets
H.G. Infra Engineering (pronounced “HG Infra” and not “Hey-Gee Infra,” a distinction that matters when you’re reading research on Zoom) is a Jaipur-based construction company. They build roads. Lots of them. Thousands of kilometers. They also build railways, solar power plants, and now battery energy storage systems (BESS) — which sounds like a Scandinavian energy drink but is actually where India’s future grid stability lives.
Founded in 2003 by the Singh brothers (Harendra, Vijendra, Girishpal, and Hodal — yes, four of them), the company went public in March 2018. It’s executed 26+ projects across 13 states. It has an order book of ₹13,624 crore. It makes solid margins. And yet, the stock price has fallen 55% in one year, which tells you everything you need to know about retail sentiment toward infrastructure construction in India right now.
Q3 FY26 results arrived in February 2026. Consolidated revenue of ₹1,421 crore, PAT of ₹94 crore. The company is diversifying aggressively — now 64% roads, 20% rail/metro, and 12% battery storage. Management guided for ₹7,000 crore revenue in FY27. The order book is their best asset. But Jan 2026 brought unwelcome guests: the CBI, alleging bribery on ECR railway projects. Four company officials arrested. Chairman-MD granted anticipatory bail. Rating agencies put the company on observation. And the market shrugged with a further 20% down move.
This is a company in transition. Operationally sound. Financially strained. Strategically ambitious. And legally muddled. Let’s decode it.
The Concall Note (Feb 2026): Management said “no impact on operations or financial position” from the CBI search. Translation: we’re in denial, or the authorities are slow, or both. ICRA kept the credit rating at AA- Positive but flagged “continuous monitoring” — which is credit-speak for “we’re watching you.”
03 — Business Model: WTF Do They Even Do?
Roads, Rails, Solar, And Now The Newest Meme: Battery Storage
HG Infra’s business is simple: they bid for construction contracts (EPC = Engineering, Procurement, Construction), win them, execute them (sometimes), and collect payment. Their sweet spot historically was highways via HAM (Hybrid Annuity Model), where they build, the government pays half upfront and half over 15 years, and HG Infra gets to sit on a quasi-annuity while the government sweats the inflation.
Roads still dominate. But the strategic pivot is real. As of Dec 2025, their order book breakdown reads like a diversification brochure: Roads ₹8,734 cr (64%), Railways/Metro ₹2,779 cr (20%), BESS ₹1,620 cr (12%), Solar & Transmission ₹392 cr (3%). Not all diversification is good — sometimes it’s just CEO ambition wrapped in “future growth” language. But in HG’s case, the order book quality matters because all are government-linked or government-contracted (94% of order book is government, 6% private).
The company operates with a fleet of 3,000+ modern equipment, a team of 5,100+ employees spread across 13 states, and the kind of operational muscle that only shows up in concalls when something goes right. They’ve completed 45 projects. They’re executing 26 projects. Most projects are in the “execution” phase — which, in infrastructure-speak, means “we’re still paying for the monsoon to stop.”
Roads / Highways64%Order Book Mix
Rail / Metro20%Order Book Mix
BESS + Solar15%Order Book Mix
The HAM Story: HG Infra is now monetizing its HAM portfolio. In August 2025, they signed a binding offer with Neo Infra Income Opportunities Fund to sell 5 completed/near-complete HAM SPVs. They expect to close at least 3 SPVs in FY26 with ₹500–600 crore as first tranche. This is capital recycling done right — build HAM projects, de-lever by selling them to infrastructure funds, repeat. Or at least try to. The CBI might have other ideas.
💬 Here’s the thing: if infrastructure construction is cyclical and HG Infra is diversifying into BESS and solar, are they running ahead of their cash flows? Drop your thoughts in the comments.
04 — Financials Overview
Q3 FY26: The Numbers That Matter (And The Ones That Don’t)
Result type: Quarterly Results | Q3 FY26 EPS: ₹14.47 | Annualised EPS (Q3×4): ₹57.88 | Full-year FY25 EPS: ₹77.56
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,421 | 1,265 | 1,482 | +12.4% | -4.1% |
| Operating Profit | 309 | 287 | 259 | +7.7% | +19.3% |
| OPM % | 22% | 23% | 18% | -100 bps | +400 bps |
| PAT | 94 | 115 | 99 | -18.2% | -5.1% |
| EPS (₹) | 14.47 | 17.67 | 15.16 | -18.1% | -4.5% |
What Just Happened: Revenue grew 12.4% YoY (decent), but PAT fell 18.2% YoY. Why? Management blamed Q3 tax provisioning (₹6 crore for a prior-year MSME tax matter) and project mix. Operating margin tightened 100 bps YoY but expanded 400 bps QoQ. The operating profit story is healthier than the PAT story — suggesting tax and provisioning noise in the quarter, not deteriorating project execution. Also, Q3 is historically a weak quarter for infrastructure (post-monsoon project disruption). But let’s not forget: the CBI search happened in late January, just before results. That tends to focus the mind on things other than celebrating revenue growth.
05 — Valuation Discussion
Is ₹487 A Steal Or A Trap? The Fair Value Range
