Synopsis:
Shares traded lower despite a strong Q1FY26 performance, with revenue up 13% and profit surging 44% YoY. Backed by a ₹30,000 crore order book, InvIT asset transfers, and robust toll growth, the company remains well-positioned for long-term infrastructure opportunities and industry-led momentum.
As of FY25-26, India’s civil construction sector is on a path of robust expansion, with growth projected at 8-10%. This momentum is heavily fueled by a significant government capital investment of ₹11.21 lakh crore ($128.64 billion) in infrastructure. With the market size valued at over $1.2 trillion in 2025, the nation is set to become the world’s third-largest construction market.
With a market capitalization of Rs 27,000 crore, the shares of IRB Infrastructure Developers Ltd were trading at Rs 44.71 per share, increasing around 0.30 percent as compared to the previous closing price of Rs 44.59 apiece.
The company anticipates double-digit growth in toll collections this year, with Q1 showing 8% growth and full-year expectations of 10–12%. Its construction segment is projected to generate revenues of around ₹4,000 crore. With an order book of ₹30,000 crore and O&M ensuring 10–15 years’ visibility, the company is well-positioned for steady long-term growth and execution stability.
Additionally, ₹5,000 crore worth of assets are being shifted to the public InvIT, freeing capital for new opportunities. The company sees scope to secure projects worth ₹15,000 crore, supported by stronger award momentum in H2. With ₹40,000–45,000 crore BOT projects up for bidding and a ₹10 trillion monetisation programme, including ₹3 trillion for roads, industry prospects remain robust.
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The company delivered a strong Q1FY26 performance with revenue rising 13% year-on-year to Rs 2,099 crore from Rs 1,853 crore. Net profit also showed impressive growth, climbing 44% to Rs 202 crore compared to Rs 140 crore in Q1FY25, reflecting improved operational efficiency and healthy business momentum.
In Q1FY26, revenue rose 9% YoY to ₹20,990 million, driven by strong growth in the BOT/TOT and InvIT segments, offset by a slight dip in construction revenue. EBITDA improved marginally to ₹9,970 million, though the overall margin slipped to 47% from 51%, reflecting pressure in the construction segment despite robust toll operations and InvIT contributions.
The company manages assets worth ₹800 billion across 15,444 km in 12 states. With a strong 10% share of pan-India toll revenue and 33% in TOT projects, it operates BOT, TOT, and HAM models. Backed by AAA-rated InvIT platforms, high FASTag penetration, and tech-enabled O&M, it ensures long-term stability and growth.
IRB Infrastructure Developers Limited is an India-based infrastructure development company. The Company is engaged in constructing roadways and highways. The Company is involved in engineering, procurement, and construction (EPC), and operation and maintenance across all its businesses.
Written by Abhishek Singh
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