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Informist, Wednesday, Nov. 12, 2025

By Arundathi A R

MUMBAI - IRB Infrastructure Developers Ltd.'s consolidated net profit for the September quarter is expected to rise on year, as per the estimates of three brokerages. However, their views on revenue for the reporting quarter differ.

The company is likely to post a high single-digit to low double-digit on-year rise in its top line for the September quarter, driven by a weak base and steady toll revenue boosted by income from the infrastructure investment trust, according to two brokerages tracking the company. However, HDFC Securities Ltd. expects the company to post a high single-digit on-year fall in its top line due to weak execution and slow awarding of projects to road sector companies due to the heavy monsoon.  

IRB Infrastructure is likely to post a consolidated net profit of INR 1.06 billion to INR 1.35 billion for the September quarter, according to estimates from three brokerages. The highest estimate of INR 1.35 billion for the net profit is from Motilal Oswal Financial Services Ltd. and the lowest estimate of INR 1.06 billion is from Kotak Securities Ltd. The third estimate of INR 1.30 billion is from HDFC Securities. There are only three earnings estimates available on the company.

The company is expected to report consolidated net sales of INR 14.40 billion to INR 17.62 billion for the September quarter. The highest estimate of INR 17.62 billion for the company's net sales is from Motilal Oswal, while the lowest of INR 14.40 billion is from HDFC Securities. The third estimate of INR 17 billion is from Kotak Securities.

The transport infrastructure developer's net sales for the reporting quarter are expected to rise 11% on year, driven by a weak base, Motilal Oswal said. The company's consolidated revenue for the year-ago quarter fell 9.1% to INR 15.86 billion due to subdued construction activity.

"We expect revenue to be up 7% yoy (year-on-year) as steady toll revenue is aided by InvITs (infrastructure investment trust) income," Kotak said.

In the June quarter, the aggregate toll revenue of the company and its private infrastructure investment trust grew 8% on year to INR 16.80 billion, across its projects such as the Mumbai-Pune toll-operate-transfer project and the Ahmedabad-Vadodara built-operate-transfer project. IRB Infrastructure's revenue from its infrastructure investment trust and related assets segment had grown over 191% on year to INR 2.33 billion in the June quarter.

"With the festive season onset in India, we forsee a further uptick in traffic volumes and toll revenues," Amitabh Murarka, deputy chief executive officer of the company, had said in August. The Mumbai-based company's gross toll collection in the September quarter was INR 16.68 billion.

IRB Infrastructure, a transport infrastructure developer, has a portfolio of 26 highway projects and one airport project. It has three business verticals, including one private and public infrastructure investment trust each.

The company is expected to post consolidated earnings before interest, tax, depreciation, and amortisation of INR 6 billion to INR 8.55 billion for the September quarter. The highest estimate of INR 8.55 billion for the company's EBITDA is from Motilal Oswal and the lowest of INR 6 billion is from HDFC Securities. Motilal expects the company's EBITDA to increase 11.5% on year in the September quarter due to a weak base. Kotak, however, expects the EBITDA margin to decline by 230 basis points on year to 46%.

IRB Infrastructure will announce its earnings for the September quarter on Wednesday. Market participants will watch out for the management's comments about new order wins in built-operate-transfer and toll-operate-transfer projects.

At 1223 IST, shares of the company traded nearly 1% lower at INR 43.01 on the National Stock Exchange. The shares are down over 5% since the company reported its June quarter earnings on Aug. 14.

Of the four research reports on the company available with Informist, two broking firms have a 'buy' rating on the stock with an average target price of INR 64. One has a 'hold' rating and one has a 'sell' rating.

Following are the Jul-Sept earnings estimates for IRB Infrastructure from three brokerages in descending order of the estimate of net profit in INR million:

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Edited by Avishek Dutta

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