Infra stock jumps after signing battery energy storage purchase agreement with GUVNL

Synopsis:
H.G. Infra Engineering Ltd is an EPC-focused infrastructure company, gained attention as its subsidiary signed a 300 MW/600 MWh battery energy storage deal with GUVNL, boosting its renewable energy footprint and supporting a Rs. 13,932 cr order book.

The shares of  this Indian Road Infrastructure Company engaged in the business of Engineering, Procurement and Construction (EPC) Services, Maintenance of roads, bridges, flyovers and other infrastructure contract works are now in the spotlight after its subsidiary signed an agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) 

With a market capitalization of Rs. 5,669 cr, the shares of H.G. Infra Engineering Ltd are currently trading at Rs. 869 per share, increasing over 2 percent in today’s market session, making a high of Rs. 888.25, from its previous close of Rs. 865.60 per share.

Over the past year, the stock posted a negative return of 38 percent, including a 23 percent decline over the last six months and a 5 percent drop in the past month. However, it has delivered a 290 percent return over the last five years.

About the agreement

On November 28, 2025, H.G. Infra Engineering Limited’s wholly owned subsidiary, H.G. Choraniya Bess Private Limited, executed a Battery Energy Storage Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) for the long-term procurement of a 300 MW / 600 MWh battery energy storage system. 

The agreement marks a significant step in the company’s expansion into large-scale renewable energy storage projects. As of Sept 2025, the total order book stands at Rs. 13,932 cr.

About the company 

H.G. Infra Engineering Ltd is a prominent Indian infrastructure company specializing in engineering, procurement, and construction (EPC) as well as hybrid-annuity model (HAM) projects. The company operates across diverse sectors including roads and highways, bridges, railways and metro networks, renewable energy, and power transmission and distribution. 

H.G. Infra Engineering Ltd has delivered a return on capital employed (ROCE) of 16.8% and a return on equity (ROE) of 18.3%. The stock trades at a price-to-earnings (P/E) ratio of 14.1, below the industry average of 19.0. Over the past decade, the company has achieved a median sales growth of 23.2%, reflecting strong and consistent performance.

On a Year-on-year basis, the company’s sales remained almost flat at Rs. 904 crore compared to Rs. 902 crore in Q2FY25. EBITDA declined by 6% to Rs. 206 crore from Rs. 220 crore, and net profit fell sharply by around 36% to Rs. 51.8 crore from Rs. 80.7 crore. Consequently, earnings per share (EPS) dropped by about 35% to Rs. 8.01 from Rs. 12.39.

Written by Manideep Appana

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