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Informist, Wednesday, Aug. 5, 2026

By Ritwika Dutta 

MUMBAI – GR Infraprojects Ltd. is expected to report an on-year decline in its net profit for the June quarter due to a rise in input costs, according to brokerages tracking the company. The company's growth in net sales is expected to be stable due to a slowdown in highway project orders and delays in project execution.

GR Infra is expected to report a consolidated net profit of INR 1.98 billion for the June quarter, down 19% on year but up almost 12% sequentially, according to the average of estimates from six brokerages. The highest estimate for the company's net profit for the June quarter is INR 2.18 billion from Kotak Securities Ltd. and the lowest is INR 1.72 billion from JM Financial Institutional Securities Pvt. Ltd.

The company's consolidated net sales are expected to be INR 20.23 billion for the June quarter, up almost 2% on year but down 19% on quarter, according to the estimates. The highest estimate for the company's revenue is INR 21.24 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 18.26 billion from JM Financial.

The revenue growth is expected to be down sequentially due to execution challenges and continued subdued fresh order inflows due to low awards of new projects, brokerages said. Highway project awards are expected to remain moderate in the June quarter, although the pace is likely to improve sequentially towards the end of the quarter as the government pushed to revive the pipeline after a weak financial year 2025-26 (Apr-Mar), Axis Securities Ltd. said.

The company's profit margin is likely to shrink 65 basis points on year, Nuvama Wealth Management Ltd. said. Overall, the company's segment-wise growth is expected to be supported by diversification beyond the road segment, ensuring healthy revenue growth visibility over the next two to three years, Axis Securities said.

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 2.15 billion in the June quarter, down almost 46% on year and down 41% sequentially, according to the estimates. The company's EBITDA in the year-ago quarter was nearly at INR 4 billion. The highest estimate for the company's EBITDA is INR 2.3 billion from JM Financial and the lowest is INR 1.8 billion from Motilal Oswal. The company's EBITDA margin is likely to decline 90 basis points on year, according to some brokerages. "The company's margin performance will remain under pressure from competitive bidding," Axis Securities said. 

Construction activity in the infrastructure sector is expected to improve in the second half of the financial year 2026-27 (Apr-Mar) as project awards will accelerate and execution conditions will normalise, Axis Securities said. Sector margins are expected to be impacted by higher input costs of bitumen, labour cost, and logistics, the brokerage added.

Road construction had slowed down due to the extreme summer and the onset of monsoon. In the March quarter, road projects contributed 69% of the total project mix of GR Infraprojects. The company's primary client is the National Highway Authority of India, which accounts for 62% of their overall order book, according to brokerages. Strict pre-award requirements have slowed down highway projects, including higher levels of land acquisition and forest clearance before projects were put up for bidding, Axis Securities said.

GR Infra is an engineering, procurement and construction, and project management company and provides services for roads and highways, bridges, airport runways, railways, metros, power transmission, and tunnelling. Investors will watch for improvement in execution and order wins, especially in the road segment, and a potential improvement in the payment cycle from the government. The company will detail its June quarter earnings on Thursday.

Wednesday, shares of the company closed at INR 897.50 on the National Stock Exchange, down almost 1% over Tuesday. The stock is down 4% since the company reported its March quarter earnings on May 11.

All the six brokerage reports on the company available with Informist, have a 'buy' recommendation on the stock with an average target price of INR 1,353 per share. This is up 51% from the current market price. 

The following are the Apr-Jun quarter earnings estimates for GR Infra from six brokerages in descending order of the company's consolidated net profit in INR billion:

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Edited by Pankaj Aher

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