# 1. Financial Performance ## A. Key Figures * Standalone Total Income: **₹129.4 Cr** Q3 (+11.6%) · **₹353.4 Cr** 9M (+18.3%) * Consolidated Total Income: **₹128.4 Cr** Q3 · **₹365.2 Cr** 9M * Standalone EBITDA: **₹9.6 Cr** Q3 (+52.7%) · **₹36.3 Cr** 9M (+136.9%) * Consolidated EBITDA: **₹9.6 Cr** Q3 (+10.7%) · **₹35.4 Cr** 9M (+65.2%) * **Standalone PAT:** **₹6.1 Cr** Q3 (+38%) · **₹22.9 Cr** 9M (+192%) * Consolidated PAT: ₹6.3 Cr Q3 (+34.3%) · ₹23.1 Cr 9M (+121.5%) ## B. Profitability Trends * **Robust Bottom-Line Growth:** Standalone PAT surged 192% over 9M despite modest revenue growth, indicating strong cost control and operating leverage. * **Segment Margin Profile:** Tollway collection and EPC segments operate at relatively thin **EBITDA margins of 6–7%**, highlighting capital intensity and operational execution sensitivity. * **Profit Growth Outpaces Revenue:** Both standalone and consolidated EBITDA expanded faster than income, suggesting margin resilience amid scale. --- # 2. Order Book & Backlog ## A. Key Figures * **Order Book:** **₹1,160 Cr** consolidated (as of Jan 2026) (**>4x** Mar 2025 level) · **₹507 Cr** new mandates (last 2–3 months) * Tollway Orders: ₹437.3 Cr in new orders · ₹328.8 Cr Kaza Fee Plaza mandate (largest in company history) * **EPC Work Orders:** **₹630 Cr** in backlog · **₹250 Cr** to be executed in FY27 ## B. EPC Work Orders * **Robust Pipeline:** Strong forward pipeline of **over 3,900 NIP road projects** supports sustained EPC and tolling opportunities, with **L1/H1 positions exceeding ₹200 Cr** signaling ground-level traction. * **Execution Momentum:** Over **₹750–800 Cr of current orders are executable**, with active tendering underway for roads, greenfield expressways, and way-side amenities to fuel future growth. * **Strategic Growth Focus:** Management targets ~50% order book expansion next year, prioritizing **high-margin, EBITDA-enhancing projects** over volume alone. ## C. Tollway Mandates * **Record-Breaking Momentum:** Q3 marked a transformational shift with the **largest tollway contract secured to date**, reinforcing the company’s position as a leading **technology-driven, asset-light toll operator**. * **Favorable Competitive Landscape:** High-value toll mandates face **limited competition** due to stringent **NHAI registration barriers**, enabling selective bidding and stronger margin potential. * **Accelerated Order Intake:** Toll segment now represents a majority of the consolidated order book, with **₹3 Cr+ in new toll orders added recently** and multiple new corridors (e.g., **Jaipur-Bandikui**) entering execution phase. --- # 3. Segment & Business Mix ## A. Key Figures * **EPC Project Pipeline:** **INR 400–450 Cr** targeted for completion in FY27–FY28 * **Tollway Revenue Run-Rate:** **INR 30–31 Cr/month** expected from Kaza project (~**INR 1 Cr/day**) * **Client Mix:** **77% government clients** in EPC segment ensuring payment visibility * **Working Capital Cycle:** **3 months** (EPC) · **1–2 months** (Toll) ## B. EPC Performance * **Core Execution Strength:** EPC remains foundational with **30+ years** of experience and **105+ completed projects**, providing strong credibility and execution depth across infrastructure verticals. * **Strategic Diversification:** Expanding into **renewable EPC, EV charging, and ropeway operations**, signaling a shift toward integrated mobility and clean energy infrastructure. * **Favorable Cash Flow Profile:** Short working capital cycle in EPC and toll operations supports capital efficiency and liquidity stability. ## C. Tollway Operations * **Scaled, Asset-Light Model:** Tollway operations are technology-driven with focus on **digitalization and leakage control**, enabling high-margin, low-capital growth since launch in 2020. * **High-Growth Project Ramp-Up:** Operations underway at one of **South India’s largest toll plazas**, with **strong growth expected in Q1 FY27** on both volume and margin fronts. * **Superior Contract Economics:** Focus on **public-funded toll collection** avoids balance sheet strain of BOT models, while **renewable annual contracts** (e.g., Kiratpur) ensure revenue durability. * **Industry Tailwinds:** Toll collections **doubled in past two years**, with **expectation of doubling again** in next two years, validating sector momentum. ## D. Commercial Leasing * **Annuity Income Buildout:** Real estate leverages **strategically located highway-adjacent land** to create recurring leasing income, exemplified by **NYC apartment project** poised for capitalization. --- # 4. Geography & Expansion ## A. Key Figures * **Infrastructure Allocation:** **₹60,000 Cr+** allocated to Madhya Pradesh by MoRTH ## B. Regional Diversification * **Strategic Geographic Expansion:** Company is actively diversifying into Gujarat, Rajasthan, and the Northeast, with potential entry into Jammu and Kashmir and Kerala, reducing regional concentration risk and broadening market reach. * **Gujarat as Growth Hub:** Emerging as a strategic logistics and industrial corridor due to central location, port access, and strong connectivity between major economic centers. * **Northeast Momentum:** Increasing development momentum in the region supported by government infrastructure push, including new airports and highways, unlocking previously constrained opportunities. ## C. New Market Entry * **Targeted Tollway Expansion:** Aiming to enter **top 10 tollways in India** to capitalize on lower competition, funded via IPO proceeds and policy tailwinds. * **Operational Readiness Prerequisite:** Expansion contingent on established manpower, deployment, and management presence, ensuring scalable and sustainable market entry. * **Near-Term Regional Rollout:** Plans to expand into Northeast and Southeast states within the current year, leveraging existing operational strengths. ## D. Seasonal Balancing * **Portfolio Optimization via Seasonality:** Strategic acquisition of toll plazas with complementary seasonal patterns—such as **Kaza in the South** and **Rajasthan plazas**—to smooth revenue volatility and enhance yield stability. --- # 5. Operational Efficiency ## A. Technology Deployment * **Headline:** Technology-driven toll operations reduce manpower dependency while maintaining compliance through strategic deployment of local personnel and experienced managers. ## B. Local Workforce Use * **Headline:** Local hiring prioritized to lower operational costs and strengthen community integration, aligning economic efficiency with social objectives. --- # 6. Risks & Infrastructure Factors ## A. Key Figures * Toll Collection Projection: INR 55,000 Cr to INR 1.4 Lakh Cr in two years * Budget Allocation: INR 3.1 Lakh Cr to MoRTH FY26-27 (+8%) · INR 1.87 Lakh Cr to NHAI for FY27 * **Infrastructure Pipeline:** **3,906** road and bridge projects under development * **Historic Toll Revenue:** **INR 5 Cr/day** across 5–6 plazas on legacy NHAI roads ## B. Weather Disruptions * **Regional Risk Mitigation:** Operations in landslide-prone areas (e.g., Himachal, Manali) and high-rainfall Northeast undergo strict risk assessment; geographic diversification offsets weather- and festival-driven traffic volatility. * **Climate-Driven Revenue Balancing:** Strategic expansion into coastal regions reduces exposure to winter fog and monsoon disruptions, supporting stable toll collections. ## C. Regulatory Shifts * **Policy Tailwinds:** Government’s **8% YoY budget increase** and **INR 87 Lakh Cr NHAI allocation** signal strong commitment to highway expansion, seamless connectivity, and reduced revenue leakage—key margin enhancers. * **Model Transition:** Shift from **BOT to EPC mode** reclassifies tolls as public-funded post-completion, altering project economics and risk-sharing; BOT model is being reintroduced selectively. * **National Development Push:** **Bharatmala** and **NHDP** initiatives under the **National Infrastructure Pipeline** are accelerating project execution and improving pan-India road quality and logistics efficiency. ## D. Traffic Volatility * **Traffic Migration Upside:** New expressways (e.g., Delhi-Mumbai) expected to draw volume from legacy corridors due to superior **fuel efficiency, travel time savings, and road quality**, unlocking growth in underpenetrated segments. * **Operational Efficiency Boost:** Faster vehicle movement and reduced stoppage times are increasing toll compliance; upcoming **Multi-Lane Free-Flow system** may further enhance throughput and revenue visibility. --- # 7. Guidance & Outlook ## A. Key Figures * **FY27 Revenue Target:** **₹1,000 Cr** (consensus view) · **EPC:** **₹700 Cr** · **Toll & Real Estate:** **₹300 Cr** ## B. FY27 Revenue Target * **Sustained Infrastructure Momentum:** Revenue trajectory supported by **increased government funding** and a favorable policy environment for road development. * **Geographic Expansion:** New regions to contribute **substantially** to revenue from FY27, leveraging early-mover advantage in underpenetrated markets. ## C. Margin Expansion Plan * **Targeted Margin Improvement:** Aims to expand margins by **200–300 bps by FY27**, driven by a strategic shift toward **higher-value, less competitive contracts**. * **Efficiency Focus:** Management emphasizes operational discipline and margin enhancement as key pillars of long-term value creation. ## D. Growth Verticals * **Recurring Income Transformation:** Strategic pivot underway to increase contribution from **recurring revenue streams**, including commercial leasing and hospitality, over the next 3–5 years. * **Sectoral Tailwinds:** Growth supported by **₹1 lakh Cr government highway allocation** and an expected **doubling of national toll collections** within two years. * **New Venture Strategy:** Open to **JVs and partnerships** with established players to accelerate entry and scale in emerging verticals.