G R Infraprojects Limited Q3 FY26 Earnings Call Summary

Summary

G R Infraprojects Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026 4:00 PM

Event Participants

Executives Ajendra Kumar Agarwal (Managing Director), Anand Rathi (Group CFO), Ankit Maheshwari (Deputy CFO)

Analysts Abhinav (ICICI Securities), Ashish Shah (HDFC Mutual Fund), Ayush Goyal (CAVI Capital), Karan Gupta (CAVI Capital), Khadija Mantri (Capri Global), Shravan Shah (Dolat Capital), Sudeep Bora (Ambit Capital), Vaibhav Shah (JM Financial)

Financials & KPIs

Geographic & Segment Commentary

• Roads & Highways: Remained the core segment despite a slowdown in NHAI awarding. Management noted a strategic shift by the government from HAM to BOT-Toll models, which is causing temporary tendering delays due to Model Concession Agreement (MCA) modifications.
• Oil & Gas EPC: Emerged as a significant growth driver, contributing ₹400 crores to Q3 revenue. The company is currently executing ₹2,000 crores of work via associations and plans to bid for ₹20,000 crores of projects directly or through subsidiaries in FY27.
• Power Transmission & Storage: Diversification intensified with the win of a ₹414 crore Battery Energy Storage System (BESS) project for NTPC. The company sees a ₹9 lakh crore investment potential in the national T&D sector over the next seven years.
• Railway & Metro: Focus is on high-speed corridors and the PM GatiShakti framework. GRIL has bids worth approximately ₹16,000 crores (combined with highways) pending opening in this segment.

Company-Specific & Strategic Commentary

• Sector Diversification: Successfully reduced reliance on roads by entering Oil & Gas and BESS. Oil & Gas is expected to contribute ₹1,000+ crores in revenue for FY27, albeit at lower initial EBITDA margins of ~10%.
• Asset Monetization: Planning to transfer 3 assets to the InvIT in Q4 FY26, followed by another 4-5 assets in FY27 to recycle capital.
• Operational Cautiousness: Management is prioritizing 100% Right of Way (ROW) for BOT projects to ensure immediate tolling, choosing to delay appointed dates rather than risk hampered collections.
• Technological Shift: Participating in the BharatNet project with O&M activities already commenced; new construction is pending ROW resolution, with ₹400 crores revenue targeted for FY27.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Order Inflow & Bidding

• Question: What is the status of the ₹4,300 crore MSRDC projects? (Shravan Shah)
• Answer: Likely to be cancelled due to alignment changes and subsequently retendered; currently not counted in active expectations (Ajendra Agarwal).
• Question: What is the bidding pipeline for the remainder of the year? (Shravan Shah)
• Answer: Approximately ₹60,000 crores of projects are expected to be bidded by March 2026, with GRIL participating across highways and railways (Ajendra Agarwal).

Oil & Gas Segment

• Question: What is the nature of work in Oil & Gas and the capex required? (Sudeep Bora)
• Answer: Work involves subsea pipeline laying and platform modification. Currently using leased equipment to avoid heavy upfront capex until visibility improves (Ajendra Agarwal).
• Question: Will Oil & Gas revenue be uniform? (Ashish Shah)
• Answer: It is seasonal and back-ended; the majority of the ₹1,000 crore FY27 target will likely realize in H2 (Ajendra Agarwal).

Financials & Equity

• Question: How will the return of equity from InvIT be accounted for? (Shravan Shah)
• Answer: It will reduce the cost of investment on the balance sheet rather than appearing as other income (Anand Rathi).
• Question: What is the equity requirement for the T&D segment? (Shravan Shah)
• Answer: Total requirement is ₹967 crores over two years, with ~₹400-500 crores expected in FY27 (Ajendra Agarwal).

Key Takeaway

G R Infraprojects delivered a strong 36% YoY revenue growth in Q3 FY26, reaching ₹2,308 crores on a consolidated basis, primarily by successfully diversifying into the Oil & Gas and Power T&D sectors. While standalone EBITDA margins compressed to 10.07% due to a high base effect and the lower-margin nature of new segments, the company maintained a pristine balance sheet with a net debt-to-equity ratio of 0.03x. Management has lowered FY26 order inflow guidance to ₹15,000 crores due to NHAI’s sluggish awarding but remains optimistic about FY27, targeting ₹20,000+ crores in new wins. Strategic focus remains on capital recycling through InvIT transfers and scaling the new Oil & Gas vertical to a ₹1,000+ crore annual revenue contributor. The outlook hinges on the timely finalization of the BOT Model Concession Agreement and the resolution of ROW issues in the BharatNet and Agra BOT projects.