Synopsis: A Rajasthan-based infrastructure company posts its weakest quarterly numbers in years, yet a leading brokerage sees a 75% upside ahead on the strength of a swelling order book and planned asset monetisation.
A leading brokerage house has maintained its bullish stance on a Rajasthan-based infrastructure player despite the company reporting its softest quarterly performance in recent memory, citing a record order pipeline and an upcoming balance sheet repair as reasons to stay invested.
Q4 FY26 Performance: A Quarter to Forget
JM Financial has maintained a ‘Buy’ rating on H.G. Infra Engineering with a target price of ₹980 per share, implying an upside of approximately 75% from current levels. The call comes after the company reported a sharp decline across all financial metrics for the quarter ended March 2026.
On a consolidated basis, revenue from operations rose modestly to ₹1,427 crore in Q4 FY26 from ₹1,361 crore in Q4 FY25, a gain of 4.8%. However, the standalone picture told a sharply different story. Standalone revenue fell 31.4% year-on-year to ₹1,354 crore from ₹1,973 crore, weighed down by slower execution and project transitions. EBITDA margin on a standalone basis compressed to 9.4% from 14.3% a year earlier, while adjusted profit after tax dropped to ₹99.5 crore from ₹212.4 crore in the same period last year, a decline of 53.1%.
For the full year FY26, consolidated revenue grew 3.5% to ₹5,235 crore, while consolidated PAT fell 34.7% to ₹330 crore compared to ₹505 crore in FY25, reflecting higher finance costs and margin headwinds during the year.
Order Book: The Real Story
The more compelling narrative lies in the company’s order pipeline. As of March 31, 2026, H.G. Infra’s order backlog stood at ₹10,147 crore, spread across roads, railways, energy, and EPC verticals. Since then, the company has received fresh orders worth ₹5,591 crore, taking its total executable order book to approximately ₹15,739 crore. Notable post-March wins include a ₹3,931 crore Pune-to-Shirur highway package from Welspun and a ₹910 crore Jharkhand transmission project. JM Financial expects total order inflows of ₹11,000-12,000 crore during FY27, which would support a meaningful revenue recovery in the coming year.
Asset Monetisation to Ease Debt Burden
One of the key triggers the brokerage points to is the planned monetisation of five HAM road assets. The company has already sold its 49% stake in the Khammam-Devarapalle Package-1 HAM project to NIIOF and also divested the KD-2 SPV in March 2026. JM Financial expects proceeds from further monetisation to help bring down total consolidated debt, which stood at ₹4,934 crore as of March 2026.
ICRA has reaffirmed its AA- (Positive) rating on the company’s long-term fund-based facilities, a sign that the credit market still views H.G. Infra’s fundamentals favourably despite the near-term earnings softness.
Valuation: Why JM Financial Stays Bullish
The brokerage notes that at current prices, the stock trades at roughly 9 times FY27 estimated earnings and 7 times FY28 estimated earnings, which it considers attractive given the company’s strong execution track record and diversification into energy and metro rail projects. “We like HG for its robust execution track record, strong growth profile and timely diversification efforts,” the brokrage states.
About H.G. Infra Engineering Limited
H.G. Infra Engineering Limited, headquartered in Jaipur, Rajasthan, is an infrastructure construction company with over two decades of experience. It operates across road EPC and HAM projects, railways, battery energy storage systems, solar, and metro construction. The company is listed on both BSE and NSE under the ticker HGINFRA.
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