Analyst Concall
IRB Infra sees low double digit growth in toll revenue FY26
This story was originally published at 13:31 IST on 20 May 2025
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--IRB Infra: Order book as on Mar 31 at INR 310 bln
--CONTEXT: Comments by IRB Infra mgmt in post-earnings analyst call
--IRB Infra: See lower double digit growth in FY26 toll collection
--IRB Infra: Two new toll projects to be operational in FY26
--IRB Infra: See income from InvITs in FY26 similar to FY25
--IRB Infra: Have enough cash flows to service dollar bonds
--IRB Infra: See EPC ops generate revenue of up to INR 40 bln in FY26
By J. Navya Sruthi and Narayana Krishna
MUMBAI/HYDERABAD – IRB Infrastructure and Developers Ltd. is expecting a lower double-digit growth in toll collection in 2025-26 (Apr-Mar) as there is no major addition of new projects and it is based on the existing portfolio, the company management said in a post-earnings conference call. IRB Infra management said there will be two new projects--the Palsit Dankuni BOT highway project in West Bengal and the Ganga Expressway--set to become operational in the second half of the current year.
The company has applied for commissioning date for both the projects and it is expecting a tariff revision for Palsit Dankuni project to 100% from 75% earlier with an additional toll period of three years. The company's total order book as of Mar. 31 was at INR 310 billion and for the next two years the executable engineering, procurement, and construction, and operations and maintenance order book is seen close to INR 50 billion.
The integrated transport infrastructure developer reported a consolidated net profit of INR 2.15 billion for the latest quarter, marking the seventh consecutive quarter of net profit growth for the company on a year-on-year basis. The net profit, however, missed the analyst estimate of INR 3.20 billion.
The company's consolidated revenue rose over 4.3% on year to INR 21.49 billion, beating the analyst estimate of INR 18.53 billion. The latest quarter marked the second consecutive quarter of an on-year rise in the company's consolidated revenue after falling over 9% in the September quarter.
The company expects up to INR-40-billion revenue from engineering, procurement, and construction operations in FY26. In FY25, the company's consolidated revenue rose over 4.3% on year to INR 21.49 billion.
The consolidated revenue for the quarter included a gain of INR 2.85 billion on infrastructure investment trust and related assets as per fair value measurement and INR 216.5 million interest income from the infrastructure investment trust and related assets. The company's management expects income from the infrastructure investment trust in FY26 to be similar to FY25.
Revenue from its build-operate-transfer or toll-operate-transfer projects segment rose nearly 4% on year to INR 6.41 billion during the March quarter. Revenue from the construction segment fell 17% on year to INR 11.98 billion and from the infrastructure investment trusts and related assets segment fell over 23% to INR 3.07 billion.
The management also said it does not forsee any challenge in terms of cash flow for servicing the dollar bond. "And in terms of money whatever we have raised...around $200 million, they are still lying as a cash with us and which will be deployed for the future opportunity," the management said.
According to the reports, in October, IRB Infra raised up to $200 million in US dolllar-denominated notes, maturing in 2032. They previously issued $540 million in foreign currency bonds, listed on the India INX, and received bids exceeding $2 billion, according to report. The company said apart from toll revenue, there is enough cash flows from other segments to meet the service obligations of these dollar bond issues going forward.
At 1316 IST, shares of IRB Infrastructure traded marginally lower at INR 50.11 on the National Stock Exchange. End
US$1 = INR 85.53
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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