Infra Stock Crashes 7% After CBI and ACB Conduct Raids Over Corruption Allegations

Synopsis: H.G. Infra Engineering plunged sharply after CBI and ACB (Patna) conducted searches at its office and project locations relating to an investigation into corruption allegations.

The shares of this company, engaged in the business of Engineering, Procurement and Construction (EPC) Services, Maintenance of roads, bridges, flyovers and other infrastructure contract works, are in focus afterthe  CBI conducted raids alleging corruption charges. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 4,029 crore, the shares of H.G. Infra Engineering Ltd made a day low of Rs 616.30 per share, down 7 percent from its previous day’s closing price of Rs 663.20 per share. Over the past five years, the stock has delivered a robust return of 188 percent, outperforming NIFTY 50’s return of 76 percent.

Reason behind the fall

H.G. Infra Engineering Ltd informed the exchanges that officials from the CBI and Anti-Corruption Bureau (ACB Patna) searched on January 21, 2026. They visited the company’s corporate office in Jaipur, the Gurugram regional office, and a project site in Aurangabad, Bihar, all linked to RC 0232026A0005 under the Prevention of Corruption Act. The search started at 6:10 pm and finished around 1:00 am on January 22.

Authorities are now reviewing records and requesting additional information. While HG Infra says it has been fully cooperative, the company hasn’t disclosed any specifics about the allegations or potential financial impact. However, said that daily operations remain unaffected.

News like this typically puts pressure on the stock where investors get nervous due to legal uncertainty and the threat of penalties or reputational harm, even if the business itself continues as usual.

Financial and other highlights

The consolidated revenue from operations for H.G. Infra Engineering stands at Rs 904 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 902 crores, up slightly by 0.2 per cent YoY. However, on a QoQ basis, it reported a sharp decline of 39 percent from Rs 1,482 crore. 

Coming to its profitability, the company’s net profit stood at Rs 52 crore in Q2 FY26, compared to Rs 81 crore in Q2 FY25, representing a decline of 36 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 99 crore, which is a decline of 47 percent.

As of the latest filing available, the company has a robust order book of Rs 13,933 crore (~3x of its FY25 revenue). Of the total orders, the company derives 54 percent of its order value from West, followed by 22 percent from East, 16 percent from North and the remaining 8 percent from South. 

H.G. Infra Engineering Limited is an infrastructure company that operates in engineering, procurement, and construction (EPC) spaces throughout India. The company pursues civil construction projects, such as roads, highways, bridges and flyovers, and railways, under both a turnkey basis and a hybrid annuity model. The company also undertakes metro, solar power plant, and water sector infrastructure projects.

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