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Informist, Monday, Feb. 16, 2026

 

--CONTEXT: IRB Infra mgmt's comments in post-earnings analyst concall 

--IRB Infra: Not planning to bid for toll operate transfer-19 project 

--IRB Infra: Will continue to focus on toll-operate-transfer projects 

--IRB Infra: PAT to grow at 25% compound annual growth rate over next 5 yrs 

--IRB Infra: Expect 3-4 toll-operate-transfer projects in Jan-Mar 

 

By Arundathi A R and Arya S. Biju

 

MUMBAI – Highways construction company IRB Infrastructure Developers Ltd. expects its net profit to grow at a compound annual growth rate of 25% in the next five years, its management told analysts in a post-earnings conference call. The company will continue to focus on toll-operate-transfer projects.

 

"We remain optimistic about the upcoming toll-operate-transfer projects," the management said. There are three to four toll-operate-transfer projects in line for the March quarter. "These projects together, the three of the projects should somewhere augment around INR 100 billion to INR 120 billion," a top company official said. 

 

However, the management decided not to bid for the National Highways Authority of India's TOT-19 project in Odisha as the authority has stated it would make multi-lane free flow compulsory for the project. "We have decided to pause for the timing and see what kind of response NHAI is able to make on MLFS (multi-lane free flow) compulsory because the concern here is that MLFS has not been introduced anywhere in the country yet," the management said, adding that the project size is smaller.

 

The company will deploy more capital on the toll-operate-transfer side and only focus on build-operate-transfer in case of a viable proposition. "The idea is to deploy patient capital to create value over a period of time," a top official in the management said during the call.

 

The management expects its distribution to grow in the coming quarters from the public as well as private infrastructure investment trusts with more projects becoming operational in the coming quarters. Cash flow distribution is likely to increase from next year, with the TOT-17 and ToT-18 projects contributing more from the next quarter, according to the management. In the December quarter, the company's distribution from the public as well as private infrastructure investment trusts was close to INR 600 million.

 

Going forward, distribution of INR 4 billion to INR 5 billion is expected from private infrastructure investment trusts, while that of around INR 1.5 billion is expected from public infrastructure investment trusts, a top official said. On the back of these estimated cash flow distributions, the company said no additional equity is required for operation and maintenance for Mumbai-Pune expressway. Operation and maintenance business is one of the consistent businesses of the company, it said. 

 

The Mumbai-based company reported a consolidated net profit of INR 2.11 billion for the December quarter on consolidated revenues of INR 18.71 billion. At 1411 IST, shares of the company were nearly 4% lower at INR 42.34 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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