Synopsis: Highway Infrastructure has secured a Rs. 28.69 crore Letter of Acceptance from NHAI to operate and collect user fees at the Kozhinjipatti Toll Plaza in Tamil Nadu for 90 days, further strengthening its toll operations order pipeline.
India’s toll management and highway services sector continues to benefit from NHAI’s expanding road network and increasing outsourcing of toll collection, electronic fee management, and highway operations. Alongside conventional toll collection, operators are increasingly adopting digital technologies such as RFID-based FASTag and Automatic Number Plate Recognition (ANPR), while diversifying into adjacent infrastructure services to build more stable long-term revenue streams.
Shares of Highway Infrastructure Ltd, with a market capitalisation of Rs. 316 crore, were trading at Rs. 44.00, down 0.14 percent in Thursday’s trade. The stock remains nearly 67 percent below its 52-week high of Rs. 131.40 but has recovered about 8 percent from its 52-week low of Rs. 40.60. Over the past month, the stock has declined around 7 percent and currently trades at a P/E ratio of 9.94.
What’s the News?
Highway Infrastructure Limited informed the stock exchanges that it has received a Letter of Acceptance from the National Highways Authority of India (NHAI) worth Rs. 28.69 crore for operating the Kozhinjipatti Fee Plaza on the Dindigul-Samayanallur section of NH-44 in Tamil Nadu.
The contract includes user fee collection, operation of the toll plaza, and upkeep of toilet facilities, including replenishment of consumables. The work has been awarded through a competitive e-tendering process and will be executed over a period of 90 days.
The company clarified that the order has been awarded by a domestic government entity, does not involve any related-party transaction, and that neither the promoter nor promoter group has any interest in the awarding authority.
Financial and Business Analysis
Although the Rs. 28.69 crore contract carries a relatively short 90-day execution period, it further strengthens Highway Infrastructure’s recurring toll operations portfolio. Earlier this year, the company also secured another Rs. 35.44 crore NHAI toll collection contract, demonstrating its ability to consistently win repeat mandates from India’s largest highway authority.
The latest award complements the company’s record consolidated order book of approximately Rs. 1,160 crore, comprising nearly Rs. 624 crore of EPC infrastructure projects and Rs. 537 crore of toll collection contracts. This balanced order mix provides both long-term execution visibility through EPC projects and recurring cash flows from toll management operations, reducing dependence on any single business segment.
Highway Infrastructure reported a stronger financial performance in FY26, with consolidated revenue rising to Rs. 608 crore from Rs. 496 crore in FY25, while net profit increased to Rs. 32 crore from Rs. 22 crore. The improvement reflects higher execution across its toll collection and EPC businesses. Against this larger operating base, the Rs. 28.69 crore NHAI contract represents an incremental revenue addition that further strengthens near-term execution visibility rather than materially altering the company’s overall growth trajectory.
The stock’s sharp correction from its 52-week high has compressed valuations to around 10x trailing earnings, below the broader infrastructure sector average of approximately 18x. While the discount likely reflects investor caution toward smaller infrastructure companies, working-capital intensity and execution risks, continued order inflows, a record order book and sustained earnings growth could support a gradual re-rating if execution remains consistent.
Industry and Strategic Analysis
Highway Infrastructure has evolved from a toll collection operator into a diversified infrastructure services company with a balanced presence across EPC construction and toll management. The company has strengthened its operational capabilities by deploying advanced tolling technologies, including RFID-enabled FASTag systems and Automatic Number Plate Recognition (ANPR), enabling efficient, contactless toll collection across multiple highway projects.
Alongside its core businesses, the company is exploring opportunities in adjacent infrastructure segments such as urban mobility, wayside amenities and EV-related infrastructure to diversify its revenue base over the longer term. If successfully executed, these initiatives could reduce dependence on relatively short-duration toll collection contracts while creating additional avenues for sustainable growth.
Despite these strengths, the business remains dependent on securing fresh contracts through competitive bidding and maintaining disciplined project execution. Pricing pressure in government tenders, working-capital requirements and the short tenure of toll collection assignments remain key risks. However, with a consolidated order book of approximately Rs. 1,160 crore, comprising Rs. 624 crore in EPC projects and Rs. 537 crore in toll operations, the company has healthy execution visibility, making timely project delivery and continued order replenishment the primary factors to monitor.
Company Overview
Highway Infrastructure Limited, headquartered in Indore, Madhya Pradesh, provides toll collection, highway operations, EPC infrastructure construction, and related transportation services across India. The company executes projects for the National Highways Authority of India and other government agencies while leveraging technology-driven toll management solutions to strengthen its position in India’s expanding road infrastructure ecosystem.
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