Infra Stock in Focus After Receiving ₹4,009 Cr Transmission Project From REC Power

Synopsis: H.G. Infra Engineering secured the WR-ER Inter-Regional Network Expansion Scheme project and revenue potential of Rs. 4,009 crore over 35 years. Despite the FY26 profit decline, the company maintained a strong order book of Rs. 10,147 crore, supported by new project wins and diversified infrastructure exposure.

This Small-Cap Infra Stock, engaged in engineering, procurement, construction, and infrastructure development, delivering highways, railways, metro systems, bridges, and civil projects nationwide, is in focus after winning the Jharkhand Inter-State Transmission Project worth Rs 4,009 crore for 35 years from REC Power Development and Consultancy Limited.

With a market capitalization of Rs. 3,861.39 crores, the share of H.G. Infra Engineering Limited has reached an intraday high of Rs. 606.80 per equity share, rising nearly 0.07 percent from its previous day’s close price of Rs. 606.35. Since then, the stock has retreated and is currently trading at Rs. 593.55 per equity share. 

What is the News?

H.G. Infra Engineering has emerged as the successful bidder for the “WR-ER Inter-Regional Network Expansion Scheme – Part C” project in Jharkhand, awarded by REC Power Development and Consultancy Limited. The project will be developed under the Build, Own, Operate and Transfer (BOOT) model, with the company serving as the transmission service provider for a period of 35 years. The project is expected to be completed within 30 months.

Under the agreement, H.G. Infra will receive annual transmission charges of Rs 114.53 crore.  On the 35-year concession period, the project offers a total revenue potential of approximately Rs 4,009 crore. The long-term nature of the contract provides strong revenue visibility and strengthens the company’s presence in the power transmission sector.

Q4 FY26 Result Walkthrough

Coming into the quarterly results of H.G. Infra Engineering Limited, the company’s consolidated revenue from operations increased by 4.85 percent YOY, from Rs. 1,361 crore in Q4 FY25 to Rs. 1,427 crore in Q4 FY26, and grew by 0.42 percent QoQ from Rs. 1,421 crore in Q3 FY26.

In Q4 FY26, H.G. Infra Engineering Limited’s consolidated net profit decreased by 42.18 percent YOY, reaching Rs. 85 crore compared to Rs. 147 crore during the same period last year. As compared to Q3 FY26, the net profit has decreased by 9.57 percent, from Rs. 94 crore. The basic earnings per share decreased by 42.08 percent and stood at Rs. 13.06 as against Rs. 22.55 recorded in the same quarter in the previous year, FY2025.

Annual Performance of FY26

H.G. Infra Engineering Limited’s revenue has increased from Rs. 5,056 crore in FY25 to Rs. 5,235 crore in FY26, which has grown by 3.54 percent. The net profit has decreased by 34.65 percent from Rs. 505 crore in FY25 to Rs. 330 crore in FY26. The annual basic earnings per share decreased by 34.64 percent and stood at Rs. 50.69 as against Rs. 77.56 recorded in the financial year 2025.

H.G. Infra Engineering Limited’s revenue and net profit have grown at a CAGR of 14.94 percent and 6.84 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 11.3 percent and 9.56 percent, respectively. H.G. Infra Engineering Limited’s debt-to-equity ratio is 1.54x.

Order Book

H.G. Infra Engineering Limited reported a total order book of Rs. 10,147.1 crore as of 31 March 2026, providing strong revenue visibility for the coming years. The order book is well diversified across segments, with HAM Road projects contributing 43.72 percent (Rs. 4,435.5 crore), making it the largest segment. This is followed by Railway projects at 27.84 percent (Rs. 2825 crore), Energy Vertical (BESS, Solar & T&D) projects at 19.02 percent (Rs. 1,930.1 crore), and EPC Road projects at 9.43 percent (Rs. 956.4 crore).

During FY2026, the company removed the MSRDC NC-4 and NC-5 projects worth approximately Rs. 4,142 crore from its order book. However, the impact was largely offset by newly awarded projects secured during the year. This demonstrates H.G. Infra’s strong execution capabilities and continued success in winning new contracts, supporting a healthy and balanced project pipeline across multiple infrastructure sectors.

Company Overview

HG Infra Engineering Limited is a publicly listed Indian engineering, procurement, and construction (EPC) company specializing in civil infrastructure. Headquartered in Jaipur, Rajasthan, it focuses on highways, railways, metro, renewable energy, and transmission projects across India. Established in 2003, it has emerged as one of the fastest-growing infrastructure companies in the country.

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