IRB Infrastructure Developers vs Schneider Electric Infrastructure Q3 FY26

IRB reported Q3 FY26 consolidated revenue of ₹1,912 crore (down 9% YoY) due to completion of construction projects, but PAT grew 14% YoY to ₹253 crore driven by higher InvIT income and lower interest costs. EBITDA margin expanded ~80bps to ~8.5%. The company won TOT8 for ₹3,087 crore, raising its TOT market share to 44%, and completed the VM7 asset transfer, unlocking ₹520 crore equity. Management guided for zero net debt by 2030 and 25% PAT CAGR, with a robust order book of ₹37,300 crore. Key risk: MLFF technology uncertainty may delay future TOT bids.

Guidance read

Zero net debt by 2030: Management targets consolidated net debt to reach zero by 2030, improving balance sheet strength. 25% PAT CAGR till 2030: Expects profit after tax to grow at a CAGR of approximately 25% until 2030. Cash ROE to improve from 6-8% to 14-15% by 2030: Cash return on equity is expected to increase from current 6-8% to 14-15% by 2030. Asset base target of ₹1,40,000 Cr in 3 years: Company aims to scale asset base from ₹94,000 Cr to ₹1,40,000 Cr over the next three years.

Risk read

Key risks include MLFF technology uncertainty — NHAI's mandate for multi-lane free flow on TOT19 led IRB to skip bidding; unresolved recovery mechanism may affect future TOT bids.; Intense competition in HAM/EPC — Management noted 20+ bidders per HAM project and EPC bids 45-50% below NHAI estimates, making these segments unattractive.; Complex BOT projects with viability concerns — New BOT projects are more complex (e.g., structure-heavy) with uncertain traffic and toll structures, limiting IRB's appetite.; Declining construction revenue — Construction segment revenue fell 31% YoY due to project completions; future EPC revenue depends on selective bidding..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Schneider Electric Infrastructure delivered a record quarter, crossing ₹1,000 crore in revenue for the first time, with 20% YoY growth. Order booking surged 60% YoY to ₹999 crore, driving the order backlog to ₹1,700 crore (up >50% YoY). PAT grew 20% YoY to ₹155 crore, aided by operating leverage and cost control. Management highlighted strong tailwinds from government capex, data centers, renewables, and urbanization. The launch of the indigenously developed GM set switchgear positions the company for high-growth segments. Risks include raw material volatility and geopolitical uncertainties, which management aims to mitigate through hedging and selective contract execution. Overall, the company is at an inflection point with robust demand visibility.

Guidance read

Maintain healthy order intake: Management expects to sustain strong order booking momentum driven by government schemes and private capex. Focus on profitable growth: Company aims to pick right contracts and mitigate raw material volatility to protect margins. Capex for capacity expansion: Ongoing capex in three plants to prepare for future demand; details to be announced when approved.

Risk read

Key risks include Raw material cost inflation — Commodity price volatility could impact margins; management hedges partially but not fully.; Geopolitical uncertainties — Global geopolitical situation may affect demand and supply chains, making growth less predictable.; Contract execution risk — Picking the right contracts is critical; wrong selection could lead to margin pressure..

Promise ledger

Scorecard data is being built as historical quarters are processed.