H.G. Infra Engineering Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for Financial Year 2025-26 to BSE Limited and the National Stock Exchange of India Limited, in compliance with Regulation 34(2)(f) & 53 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, which also forms part of the company's Annual Report 2025-26, outlines the company's performance across all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC) and is available on the company's official website at www.hginfra.com .

Business Overview and Operations

H.G. Infra Engineering Limited (HGIEL) is a leading infrastructure development company specialising in highway construction and large-scale EPC projects. The company has strategically diversified its portfolio into railway, metro, and renewable energy projects. Its business activities, accounting for 90% of turnover, are distributed as follows:

The company operates across 36 national locations (32 plants/operations and 4 offices) and serves customers across 14 states in India. It has no international operations or exports. HGIEL serves Central and State Government agencies, statutory authorities, and private sector enterprises. The company is a member of three national industry associations: the National Highway Builder Federation (NHBF), the Construction Federation of India (CFI), and the India Energy Storage Alliance (IESA).

CSR and Financial Highlights

CSR is applicable to HGIEL under Section 135 of the Companies Act, 2013. The key financial figures disclosed in the report are as follows:

The company undertook CSR projects in designated aspirational districts, with amounts paid as follows:

Workforce and Human Capital

As at the end of FY 2025-26, the company's total workforce comprised 1,681 employees (1,659 permanent and 22 other than permanent) and 5,093 workers (3,418 permanent and 1,675 other than permanent). Women represented 25.00% of the Board of Directors (2 out of 8 members) and 50.00% of Key Management Personnel (1 out of 2). The cost incurred on employee and worker well-being measures as a percentage of total revenue was 0.11 in FY 2025-26, compared to 0.13 in FY 2024-25.

Average training hours per employee increased from 7.8 hours in FY 2024-25 to 15.7 hours in FY 2025-26. The company achieved a 100% completion rate for mandatory Anti-Corruption and Anti-Bribery training across all applicable employees in both FY 2024-25 and FY 2025-26, as well as a 100% completion rate for mandatory human rights training in both years.

Key remuneration data for FY 2025-26 is summarised below:

Gross wages paid to females as a percentage of total wages stood at 1.61 in FY 2025-26, up from 1.06 in FY 2024-25.

Environmental Performance

The company's total energy consumption from non-renewable sources was 1,123,422.2896752 GJ in FY 2025-26, compared to 1,692,040.62 GJ in FY 2024-25. Energy intensity per rupee of turnover was 21.498121 GJ per million INR in FY 2025-26, against 33.464789 GJ per million INR in the previous year.

Total water withdrawal stood at 706,094.00 kilolitres in FY 2025-26, compared to 1,683,768.32 kilolitres in FY 2024-25. Water intensity per rupee of turnover was 13.22 KL per million INR in FY 2025-26, versus 33.30 KL per million INR in FY 2024-25. Total water discharged was 0.00 kilolitres in both years, reflecting the company's Zero Liquid Discharge approach through the use of STPs and septic tanks at project sites.

Greenhouse gas emissions and air emissions for the two financial years are detailed below:

Total waste generated was 5,581.357 metric tonnes in FY 2025-26, compared to 7,123.548 metric tonnes in FY 2024-25. As part of its biodiversity commitment, the company exceeded its tree-planting target of 1,20,000 trees by planting 2,87,629 trees during FY 2025-26. The company is certified to ISO 9001, ISO 27001, ISO 14001, and ISO 45001 standards.

Governance, Ethics, and Compliance

The company reported zero penalties, fines, or compounding fees in FY 2025-26. There were no disciplinary actions against any Directors, KMPs, employees, or workers for bribery or corruption. No complaints related to conflict of interest, sexual harassment, child labour, forced labour, discrimination, or wages were received or pending during the year. The number of days of accounts payables was 118 in FY 2025-26, compared to 82 in FY 2024-25.

Purchases from trading houses as a percentage of total purchases stood at 26.10 in FY 2025-26, down from 28.76 in FY 2024-25. The share of related party transactions in total purchases was 5.44 in FY 2025-26, compared to 7.87 in FY 2024-25. The company sourced 82% of inputs sustainably and procured 100% of inputs directly from within India. Inputs sourced directly from MSMEs and small producers accounted for 6.66% of total inputs by value in FY 2025-26, compared to 10.12% in FY 2024-25.

The company's governance framework is anchored by the Board of Directors, supported by an ESG Council comprising senior representatives from Finance & Accounts, Operations, and Human Resources & Administration. All nine NGRBC principles are covered by Board-approved policies, which are accessible on the company's official website. No independent external assessment of policy working was carried out during the reporting year.

H.G. Infra Engineering Limited has released its Annual Report for the financial year ended March 31, 2026, presenting a comprehensive overview of its financial performance, strategic progress, and corporate developments. The company's 24th Annual General Meeting (AGM) is scheduled for Wednesday, August 19, 2026, at 2:00 p.m. IST, to be held through Video Conference and Other Audio-Visual Means. The Board has recommended a final dividend of ₹2.00 per equity share of face value ₹10 each, with Wednesday, August 12, 2026, fixed as the record date.

Financial Performance

The company delivered the following standalone and consolidated results for the financial year ended March 31, 2026:

Standalone revenue declined 6.37% due to project execution timelines, while consolidated revenue grew 3.53%, supported by increasing contribution from renewable energy and HAM project subsidiaries. Profitability declined across both levels, primarily reflecting higher finance costs, input cost pressures, and solar project commissioning delays.

Order Book and Business Operations

H.G. Infra closed the financial year with a total order book of approximately ₹1,01,471 million, reflecting a healthy mix of government (94.00%) and private (6.00%) projects. Total order inflows for the financial year reached ₹45,042.51 million (excluding GST), including ₹14,232 million from strategic expansion into railway, metro, and renewable energy sectors. The company secured new orders worth approximately ₹4,504.25 crore including variations during FY 2025-26.

Significant orders secured during the year included a 300 MW/600 MWh Battery Energy Storage System project in Gujarat valued at EPC value of ₹6,982.3 million, a Thane Integral Ring Metro project valued at ₹14,150.00 million (Company's 40% share), a Capital Region Ring Road Package-III in Odisha under HAM valued at ₹15,821.10 million, and railway infrastructure works at Anuppur, Madhya Pradesh valued at ₹4,013.30 million.

Capital Structure and Debt

As of March 31, 2026, the company's standalone gross debt stood at ₹1,627 crore, comprising working capital borrowings, NCDs, and project-related debt. During the year, the company issued 40,000 Senior, Unsecured, Redeemable, Rated, Listed Non-Convertible Debentures of face value ₹1,00,000 each, aggregating to ₹400 crore, listed on the BSE Wholesale Debt Market. The net debt-to-equity ratio on a standalone basis stood at 51% compared to 37% in the previous year. The company's equity share capital remained unchanged at ₹651.71 million, comprising 6,51,71,111 equity shares of ₹10 each.

Dividend and AGM Details

The Board recommended a final dividend of ₹2.00 per equity share for FY 2025-26, subject to shareholder approval at the 24th AGM. The payout ratio stood at 3.35%. The dividend will be paid electronically to shareholders with updated bank details on or before Thursday, September 17, 2026.

Strategic Developments and Outlook

H.G. Infra continued its transformation from a roads-focused EPC company into a diversified infrastructure enterprise. The energy vertical, comprising solar, BESS, and transmission projects, now accounts for 19% of the order book. The company holds BESS agreements with GUVNL and NVVN for 1,470 MWh of combined capacity, with land acquisition completed for Banaskantha and Dholera projects. The solar portfolio under PM-KUSUM reached approximately 96.3% physical completion, with 131 plants commissioned and billing to DISCOMs underway. Three transmission projects were secured with a combined EPC contract value of ₹1,460 crore.

As part of its HAM asset monetisation strategy, the company completed the transfer of 100% stake in four HAM assets during FY26. Against a total estimated equity requirement of approximately ₹1,903 crore across 11 HAM projects, ₹1,210 crore had already been infused as of March 31, 2026. The company targets order inflows of ₹11,000 to ₹12,000 crore for FY27. ICRA reaffirmed the company's credit ratings at [ICRA]AA- (Positive) for long-term facilities and [ICRA]A1+ for short-term facilities.

Corporate Governance

The Board comprises eight directors, including three executive directors and five independent directors, two of whom are women. During the year, Mr. Devendra Bhushan Gupta was appointed as Whole-time Director effective June 1, 2025, following the resignation of Mr. Dinesh Kumar Goyal. The 24th AGM agenda includes special resolutions for re-appointment of Mr. Harendra Singh as Managing Director for a third term of five years (May 15, 2027 to May 14, 2032) and re-appointment of Mr. Vijendra Singh Choudhary as Whole-time Director for a third term of five years (May 15, 2027 to May 14, 2032), along with enhancement of borrowing limits to ₹8,000 crore and creation of charge limits to ₹20,000 crore.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE926X01010/9b0852da-901f-44a0-b785-51c3124a74fc.pdf