G R Infraprojects’ record shows a widening gap between reported profit and cash: cumulative operating cash flow over ten years is negative ₹7,299 crore against a cumulative profit of ₹8,993 crore, and the company has funded dividends and growth by selling road assets to a group-controlled trust and drawing loans back from subsidiaries.
Key findings
- A dense web of subsidiaries and an associate InvIT blurs control boundaries
Major- The company holds 43.56% of Indus Infra Trust and treats it as an associate, not a subsidiary, even though the trust’s investment manager is a wholly owned subsidiary and the company acts as project manager. In FY24, the company sold seven wholly owned road-project subsidiaries to the InvIT, receiving InvIT units rather than cash. - The company funnelled over ₹1,000 crore in loans and perpetual debt to subsidiaries
Major- The company provided loans including perpetual debt of 1,000 crore to subsidiaries during FY2024-25. Perpetual debt issued to subsidiaries carries a zero coupon rate and is redeemable only at the subsidiary’s option. As at 31 March 2024, standalone trade receivables from related parties stood at 1,527.82 crore, representing 88.6% of total standalone trade receivables. - Consolidated borrowings of ₹4,872 crore sit almost entirely in subsidiaries
Major- Consolidated borrowings were ₹4,872 crore as at 31 March 2026, while standalone borrowings were only ₹238 crore. The parent has pledged equity shares of subsidiaries worth ₹99.31 crore and executed non-disposal undertakings for lenders of 12 named subsidiaries. - Revenue recognition relies on significant management judgment, and receivables have swung sharply
Major- Revenue recognition from long-term construction contracts is a Key Audit Matter in every annual report from FY2021 through FY2026. Consolidated trade receivables days rose to 32.37 in FY2026 from 11.09 in FY2025. At 31 March 2026, two customers accounted for approximately 80% of all outstanding receivables, receivables under service concession, and contract assets. - A CBI corruption case is ongoing, and an Income Tax search was conducted in October 2025
Major- On 12 June 2022, law enforcement took into custody two NHAI officials and three company employees under the Prevention of Corruption Act, 1988; the matter is sub-judice with no charges framed and a stay from the Hon’ble High Court of Guwahati. On 9 October 2025, the Income Tax Department conducted a search under section 132 at company locations, residences of promoters, the CFO and employees, taking documents, laptops, data back-ups and cash of ₹1.85 crore. NSE imposed a penalty of ₹5,000 for delayed RPT disclosure for the half year ended 30 September 2025. - Three audit firms in six years, with the current auditor completing its five-year term
Major- For FY2020-21, the statutory auditor was B S R & Associates LLP. For FY2021-22 through FY2025-26, the auditor was S R B C & CO LLP, appointed for a five-year term. The Board proposes to appoint M/s B S R and Co as statutory auditors from the 30th AGM, replacing S R B C & CO LLP upon expiry of its term. Total consolidated fees paid to the statutory auditor and its network entities declined from ₹1.20 crore in FY2021-22 to ₹0.70 crore in FY2025-26.
What to watch
- CBI corruption case. The matter is pending before the Hon’ble High Court of Guwahati with a stay on proceedings as of the FY2025-26 Annual Report.
- Income Tax search outcome. Show-cause notices are expected from the Income Tax Department following the October 2025 search, per management comments in the Q4 FY26 transcript.
- GST demands on annuity payments. Demands of ₹35.31 crore and ₹25.91 crore are pending before the Rajasthan High Court as of the FY2025-26 Annual Report.
- Deferred consideration collection. Whether the ₹63 crore deferred consideration from the FY2026 HAM asset sale to Indus Infra Trust is collected in cash.
- Undrawn committed facilities. Drawdown of the ₹12,694.74 crore undrawn committed facilities, which can be exercised without further lender consent, as at 31 March 2026.
Bottom line: This is a disclosed record where reported profit has run far ahead of cash for a decade, and the gap has been bridged by selling road assets to a group-controlled trust and drawing loans back from subsidiaries. The structure is dense, the related-party flows are large, and regulatory scrutiny is active. Watch whether standalone operating cash flow turns positive, whether the deferred consideration lands in cash, and what comes of the CBI case and the Income Tax search.