HG Infra Engineering vs IndiGrid Infrastructure Trust Q3 FY26

HG Infra reported Q3 FY26 standalone revenue of ₹1,450 crore with EBITDA margin of 15.5%, while PAT declined to ₹97 crore (6.7% margin) due to higher tax provisions. The order book stands at ₹13,624 crore, with roads contributing 64%, railways 20%, and renewables 15%. Execution was impacted by prolonged monsoon and delayed appointed dates for key projects like Varanasi-Kolkata Package 10. Management expects Q4 revenue of ~₹2,000 crore and FY27 revenue of ~₹7,000 crore, driven by existing orders and new project wins. Order inflow target for FY27 is ₹10,000-12,000 crore. Risks include margin compression from competitive bidding, delays in HAM asset monetization, and the ongoing CBI investigation which management declined to elaborate on.

Guidance read

Q4 FY26 revenue guidance of ~₹2,000 crore: Management expects standalone revenue of around ₹2,000 crore in Q4 FY26, driven by execution catch-up. FY27 revenue guidance of ~₹7,000 crore: Revenue target for FY27 is approximately ₹7,000 crore, with ₹5,500 crore from existing projects and ₹1,500 crore from new projects like MSRDC. FY27 order inflow target of ₹10,000-12,000 crore: Management targets order inflows of ₹10,000-12,000 crore in FY27, including roads, railways, and BESS projects. EBITDA margin guidance of ~14-15% for new projects: Margins on new bids are expected to be around 14-15%, down from historical 15-16%, due to competitive pressure.

Risk read

Key risks include CBI investigation impact — CBI searched company offices in January 2026; management provided no details beyond stock exchange disclosures, creating uncertainty.; Delay in HAM asset monetization — Monetization of 5 HAM assets is pending lender NOCs; only 3 of 5 SPVs expected to close in FY26, delaying cash inflows.; Margin compression from competitive bidding — Management acknowledged that new project margins may fall to ~14% from historical 15-16% due to market correction.; Execution risk from delayed appointed dates — Key projects like Varanasi-Kolkata Package 10 and Nagpur EPC orders face delays, impacting revenue visibility..

Promise ledger

Scorecard data is being built as historical quarters are processed.

IndiGrid reported a solid Q3 FY26 with revenue of ₹862.2 crore (+11.7% YoY) and EBITDA of ₹784.3 crore (+13% YoY), driven by acquisitions completed in Q1 FY26 (Renew assets worth ~₹2,200 crore). PAT was muted at ₹328 crore due to working capital changes. The company maintained a DPU of ₹4, in line with the annual guidance of ₹16. Operational metrics remained strong: transmission availability at 99.77% and solar CUF at 21.6%. Management highlighted a robust pipeline of ₹7,500 crore under construction (via InnerGrid), with two new definitive agreements signed for battery and transmission projects worth ~₹2,600 crore. The QIP raised ₹1,500 crore, reducing net debt/AUM to 56.5%. Key risk: execution delays in the under-construction pipeline or adverse interest rate movements could impact DPU accretion.

Guidance read

DPU guidance of ₹16 for FY26: Management reaffirmed the annual distribution per unit target of ₹16, supported by disciplined capital deployment. AUM growth to ~₹40,000 crore: With the ₹7,500 crore under-construction pipeline (via InnerGrid), AUM is expected to grow from current ₹32,800 crore to ~₹40,000 crore over the next 2-3 years. Net debt/AUM target of 56.5% post-QIP: After the ₹1,500 crore QIP, leverage ratio improved to 56.5%, providing headroom for future acquisitions.

Risk read

Key risks include Interest rate risk on locked-in acquisition values — Management fixed the acquisition value for the Techno Electric asset well in advance; if interest rates rise, the deal could become less accretive.; Execution risk in under-construction pipeline — The ₹7,500 crore pipeline includes projects under construction by InnerGrid; delays or cost overruns could impact the timing and accretion of acquisitions.; Grid connectivity delays for new projects — Management acknowledged that transmission capacity buildout lags behind generation PPAs, which could slow down new project additions..

Promise ledger

Scorecard data is being built as historical quarters are processed.