The civil construction sector in India is booming, expected to reach around Rs 25.31 trillion (about USD 310 billion) in 2025 with an annual growth rate of 11.2 percent.
Driven by government infrastructure projects, smart city initiatives, and urban development, the sector plays a crucial role in India’s economic growth and modernization. Growth is supported by investments in roads, metros, and green buildings.
With a market capitalization of Rs 27,235.89 crore, the shares of IRB Infrastructure Developers Ltd were trading at Rs 45.19 per share, increasing around 5.31 percent as compared to the previous closing price of Rs 42.91 apiece.
FY26 Guidance
IRB Infrastructure expects strong momentum in FY26, reiterating double-digit toll revenue growth and targeting nearly Rs 4,000 crore from its construction vertical. With consistent traffic growth across key corridors, the company aims to sustain cash flow strength and improve asset monetisation potential.
The firm holds a leading 42 percent market share in TOT assets and is positioned to capitalise on a sizeable pipeline, with Rs 25,000–30,000 crore of TOT projects and another Rs 28,000–30,000 crore of BOT opportunities coming up for bids, supporting multi-year growth visibility.
Furthermore, IRB Infrastructure notes that commercial vehicles form the backbone of highway traffic, contributing 80–85 percent of volumes, while passenger cars make up only 15–20 percent. Post-Covid car movement has risen 10–12 percent, supporting overall traffic growth of about 6–7 percent. With the heavy monsoon over, the company expects toll revenue momentum to strengthen in the upcoming quarter.
Additionally, IRB Infrastructure Trust has secured the TOT-17 project for tolling, operation, and maintenance of key stretches of NH-28 and NH-731 in Uttar Pradesh. The Trust will pay a Rs 9,270-crore concession fee for a 20-year tenure. Supported by annual tariff revisions and predictable O&M income, the asset is expected to expand the portfolio by nearly 20 percent to around Rs 65,000 crore.
Financial & Operational Highlights
The company delivered steady growth in Q2FY26, with revenue rising 10 percent to Rs 1,751 crore compared to Rs 1,586 crore last year. Net profit showed stronger traction, climbing 41 percent to Rs 141 crore from Rs 100 crore, reflecting better operational efficiency, improved margins, and a healthier overall performance.
In Q2FY26, IRB Infrastructure reported total revenue of Rs 17,510 million with EBITDA of Rs 9,731 million and a 56 percent margin. The BOT/TOT segment contributed Rs 6,275 million in revenue, while InvITs generated Rs 3,034 million. The construction segment delivered Rs 8,201 million revenue, reflecting weaker execution during the quarter.
IRB Infrastructure Developers is one of India’s leading integrated highway developers, specializing in BOT, TOT, and HAM road projects. With a strong national presence, large asset base, and proven execution capabilities, the company plays a key role in expanding India’s expressway network while generating stable, long-term revenue through tolling and operations.
Written by Abhishek Singh
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