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Informist, Wednesday, Jul. 29, 2026

By Krupa Biju

MUMBAI – IRB Infrastructure Developers Ltd. is expected to see substantial growth in its net profit for the June quarter, according to brokerages tracking the company. The company's net revenue is likely to fall due to weak performance of the construction segment, the largest contributor, on account of a lower opening order book.

IRB Infra is expected to post a consolidated net profit of INR 2.76 billion for the June quarter, up 36% on year but down 7% sequentially, according to the average of estimates from four brokerages. The highest estimate for IRB Infra's net profit for the June quarter is INR 2.93 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 2.44 billion from Kotak Securities Ltd.

The company's net sales are expected at INR 18.31 billion for the June quarter, down 12% on year and also down nearly 5% sequentially. The highest estimate for the company's net sales is INR 20.37 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 15.20 billion from HDFC Securities Ltd.

IRB Infra's revenue will likely fall due to weak execution in its engineering, procurement, and construction order book, Motilal Oswal said. The slowdown in awarding projects in financial year 2025-26 (Apr-Mar) by the National Highway Authority of India will impact the revenue growth of the company for the June quarter.

The infrastructure sector has suffered from a slowdown of government projects being awarded which is due to high commodity prices, HDFC Securities said. The slowdown is also due to indecisiveness and capital preservation by clients, the brokerage said. The successful fundraise from public and private markets by real-estate infrastructure investment trusts is likely to cushion the impact of slower orders from the National Highway Authority of India, the brokerage added.

IRB Infrastructure's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to be between INR 6.8 billion to INR 11.2 billion, according to three estimates. The highest EBITDA estimate for the company is INR 11.2 billion from Motilal Oswal and the lowest is INR 6.8 billion from HDFC Securities.

The company's EBITDA margin is likely to expand to 44.6-55.0% from 45.4% in the year-ago quarter, according to the brokerages. The company's EBITDA margin for the construction segment is expected at 18%, while build-operate-transfer segment will post an 84% EBITDA margin, Kotak said.

IRB Infrastructure Developers is India's largest integrated private toll roads and highways infrastructure developer. The company specialises in building, operating, and maintaining major roads, expressways, and highways across India. IRB Infrastructure will detail its earnings Thursday.

Investors will watch for a pickup in build-operate-transfer and toll-operate-transfer order wins, brokerages said.

Both brokerage reports on the company available with Informist have a "buy" recommendation on the stock with an average target price of INR 27, up nearly 35% than closing price Tuesday.

Wednesday, shares of IRB Infrastructure closed at INR 19.98 apiece on the National Stock Exchange, up 2.7% from Tuesday. The stock is down more than 5% since the company released its March quarter earnings on May 20.

Following are the June quarter earnings estimates for IRB Infrastructure Ltd. from four brokerages in descending order of net profit, in INR billion:

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Edited by Pankaj Aher

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