Highway Infrastructure Ltd Q1 FY26 – Fresh IPO at ₹80, Order Book ₹666 Cr, PAT Jump 128%, but Margins thinner than Expressway Tea
1. At a Glance
Ladies and gentlemen, presenting Highway Infrastructure Ltd (HIL) — a brand-new IPO baby (listed Aug 12, 2025). CMP ₹80.2, Market cap ~₹575 Cr. P/E ~29.6. ROE 18.8%. ROCE 19.6%. Debt manageable at ₹61 Cr (D/E 0.54).
Business split: Toll Collection (77%), EPC Infra (21.5%), Real Estate (1.5%). Basically, 3 kids, but only one (tollways) is earning pocket money.
Last quarter: Sales ₹114 Cr (+38% YoY), PAT ₹7.2 Cr (+128% YoY). But margins are still single-digit. Investors are staring like traffic cops at a jammed flyover: is this a smooth ride or a pothole?
2. Introduction
New IPOs are like new flyovers: they look shiny on Day 1, but after six months you start spotting cracks. Highway Infra came to market in August 2025, selling 46.4 lakh shares to raise working capital (₹65 Cr earmarked).
The promise? “We’ll collect tolls, we’ll build roads, and maybe sell you a flat on the side.” The reality? 92% revenues depend on public sector contracts. Basically, your landlord is the Government of India. Good luck bargaining rent with NHAI.
Still, the IPO got attention because infra is the new PSU — and with elections around the corner, every politician loves inaugurating bridges more than actually crossing them.
3. Business Model – WTF Do They Even Do?
1. Toll Collection (77% of revenue):
Runs plazas across 11 states + 1 UT.
Delhi–Meerut Expressway is the flagship, with ANPR cameras, RFID, and contactless payments.
They bid for NHAI toll contracts (H1 bidder gets the deal).
2. EPC Infra Projects (21.5%):
Roads, bridges, tanks, irrigation.
Completed 66 projects till May 2025.
Order book ₹606 Cr in EPC, mostly MP-based (Indore, Bhopal, Dhar, Ratlam).
3. Real Estate (tiny 1.5%):
Some gated communities, commercial buildings.
Frankly, side hustle.
4. New bets:
Way Side Amenities: EV chargers + dhabas + driver dorms + craft markets. Imagine a highway mall with samosas, sockets, and a hospital bed.
HAM projects: Govt pays 40% upfront, 60% annuity over 15–20 years. Less risk, more visibility.
Verdict: They’re trying to be IRB Infra + NHAI contractor + OYO Highway Rooms, all in one.
4. Financials Overview
Quarterly Snapshot (₹ Cr)
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
114
82
129
+38.1%
-12.3%
EBITDA
11
5
14.6
+118%
-25.0%
PAT
7.2
3.2
11.8
+128%
-39.0%
EPS (₹)
1.25
0.56
2.04
+123%
-39%
Commentary:
YoY looks like Ferrari speed (PAT +128%), QoQ looks like WagonR stalling on slope (-39%).
Annualised EPS = ₹5 → P/E ~16x (on forward). Screener’s 29.6x is on trailing.
