H.G. Infra Gains Momentum, Rs 781 Cr Elevated Corridor Order Sparks 3% Jump

Shares of H.G. Infra Engineering Ltd (HGINFRA) rose by approximately 3% following the announcement that its wholly-owned subsidiary, H.G. Narol Sarkhej Highway Pvt Ltd, received the appointed date, August 19, 2025,  for a significant road upgrade contract from the National Highway Division, R&B Department, Ahmedabad.

This project involves upgrading a 10.63 km stretch of the NH‑47, from Narol Junction to Sarkhej Junction, transforming the existing six‑lane road with the addition of an elevated corridor under the Hybrid Annuity Model (HAM). The total contract value is ₹781.11 crore, with a construction timeline of 30 months.

Despite this fresh order, H.G. Infra’s Q1 FY25‑26 performance showed a revenue decline of 3.08%, from ₹1,531.79 cr to ₹1,484.54 cr. Its net profit also fell, from ₹162.57 cr to ₹98.82 cr.

However, the company remains attractive from a valuation standpoint, with a P/E ratio of 15.0, notably lower than the industry average of 22.3, coupled with a robust ROCE of 16.8% and ROE of 18.3%.

H.G. Infra is a leading player in India’s EPC infrastructure segment, with diversified operations across highways, railways/metro, land development, water pipelines and emerging sectors like solar and energy storage. It boasts over 22 years of project execution experience, an active presence across 13 states and a sizeable order book worth ₹1,46,563 million as of June 2025.