Highway Infrastructure Q2 FY26 results: net profit ₹16.86 crore

How did Highway Infrastructure perform in Q2 FY26?

Highway Infrastructure Limited reported consolidated revenue of ₹206.52 crore for Q2 FY26, against ₹111.95 crore in Q1 FY26. Revenue increased 84.5% sequentially, while total income rose 102.5% from ₹112.47 crore to ₹227.79 crore. Other income increased from ₹0.52 crore to ₹21.26 crore, and total expenses rose from ₹102.77 crore to ₹205.43 crore.

EBITDA fell to ₹4.51 crore from ₹11.52 crore in Q1 FY26, down 60.9%, and the EBITDA margin declined to 2.2% from 10.3%, a fall of 8.1 percentage points. Despite the lower EBITDA, profit before tax rose to ₹22.36 crore from ₹9.70 crore, and net profit increased to ₹16.86 crore from ₹7.19 crore. EPS rose to ₹2.53 from ₹1.25, and there was no exceptional item.

On a standalone basis, Q2 FY26 revenue was ₹88.01 crore and profit after tax was ₹9.60 crore. A year-ago quarter comparison was not available in the provided results, so the reported changes are measured against Q1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2025, Highway Infrastructure reported total assets of ₹308.78 crore and total equity of ₹211.12 crore. Borrowings stood at ₹58.19 crore and cash and cash equivalents at ₹11.99 crore. Inventories were ₹86.86 crore, trade receivables ₹32.48 crore and trade payables ₹2.82 crore. The previous balance-sheet figures were not provided, so a period-on-period comparison cannot be stated.

For H1 FY26, net cash used in operating activities was ₹23.20 crore, while investing activities used ₹37.48 crore. Financing activities provided ₹64.47 crore, and capital expenditure was ₹2.60 crore. A year-earlier H1 FY26 cash-flow comparison was not available in the provided information.

Which businesses drove the quarter?

The Toll Division reported revenue of ₹156.44 crore and EBIT of ₹7.68 crore for Q2 FY26, with an EBIT margin of 4.9%. The Work Contract Division and Machineries & Equipments Hire Division together reported revenue of ₹44.96 crore and EBIT of ₹7.87 crore, with an EBIT margin of 17.5%.

The Real Estate Division reported revenue of ₹5.12 crore and EBIT of ₹0.27 crore for Q2 FY26, with an EBIT margin of 5.2%. Year-ago revenue and EBIT figures for all three reported business divisions were not provided, so their growth rates cannot be stated.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results, statements of assets and liabilities, and cash-flow statement for the quarter and half year ended 30 September 2025. It also noted the statutory auditors’ limited review report covering both standalone and consolidated results.

The board approved the appointment of Vinayak Parkhi as an additional non-executive independent director for five consecutive years, from 6 November 2025 to 5 November 2030, subject to shareholder approval at the ensuing general meeting. The same-day investor communication stated that the order book had risen to ₹775 crore. The filings did not announce a dividend or a further fund raise.

What did Highway Infrastructure's management say?

Management said it was targeting an order book of ₹1,000 crore by the end of FY26, compared with ₹775 crore as of September 2025, and expected an additional ₹250 crore of order inflows over the next two to three months. Director and CEO Riddharth Jain said the success ratio was approximately 25% and that the company was bidding aggressively.

Joint CFO Saurabh Mittal said the company expected an EBITDA margin of 8%–12% in FY27–28, citing lower finance costs. Management also guided to an EPC segment margin of 10%–12% in the near future and said it was targeting a 50:50 revenue mix between EPC and toll operations.

Management identified the capital-intensive nature of EPC, toll-revenue seasonality from winter fog in northern India, changes in government project models, and geographic concentration in Madhya Pradesh and Uttar Pradesh as risks. It also said the company was exploring renewable EPC, way-side amenities, EV charging and commercial real-estate rental income.

How did Highway Infrastructure shares react?

Highway Infrastructure’s shares moved lower after the filing: they were down 1.1% after five minutes, 1.2% after 15 minutes and 0.3% after 30 minutes. On the reaction day, the stock closed 0.5% below its pre-results close of ₹74.09, while the Nifty Microcap 250 rose 0.4%.

By the next day’s close, the stock was down 3.4% from its pre-results close, while the Nifty Microcap 250 was unchanged. By the fifth session’s close, it was down 6.9% from the pre-results close, against a 0.5% rise in the Nifty Microcap 250. No industry median comparison was available for the reaction day or the later closes.