Highway Infrastructure wins ₹24.46 cr NHAI toll order in Tamil Nadu
- Highway Infrastructure Ltd secured a ₹24.46 crore order from NHAI for toll operations at Velanchettiyur Fee Plaza in Tamil Nadu.
- The contract has a duration of 90 days and includes maintenance of adjacent toilet facilities.
- Total disclosed order book rose to ₹1041.71 crore across 11 orders in the last three fiscal quarters.
- Order book coverage now stands at 5.05 quarters of average quarterly revenue.
*this image is generated using AI for illustrative purposes only.
Highway Infrastructure has received a work order valued at ₹24.46 crore from the National Highways Authority of India (NHAI). The contract involves the operation and collection of user fees at the Velanchettiyur Fee Plaza in Tamil Nadu.
As per the regulatory filing dated October 01, 2026, the order is for a period of 90 days. The scope includes toll fee collection as well as the upkeep and maintenance of adjacent toilet facilities. This award complements the company's existing portfolio, which includes significant engagements from state-level authorities such as the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA).
Order in financial context
The ₹24.46 crore order represents approximately 12% of the company's average quarterly revenue of ₹206.30 crore. The total disclosed order book currently stands at ₹1041.71 crore, summing 11 orders disclosed across the last three fiscal quarters. This backlog provides coverage for approximately 5.05 quarters of average quarterly revenue.
Company order track record
Order inflow velocity remained high in Q2FY27, with multiple awards from both NHAI and UPEIDA. The latest NHAI order is smaller in value compared to the recent UPEIDA awards but adds to the consistent flow of domestic highway contracts. The total order inflow for the quarter reflects a diversified client base across different state and national highway authorities.
| Quarter | Total order inflow (₹ crore) | Key awarding entities |
|---|---|---|
| Q2FY27 (Jul-Sep 2026) | 1041.71 (11 orders) | National Highways Authority of India (NHAI), Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) |
Execution and revenue quality
Consolidated revenue has shown volatility over the last three quarters, rising sharply to ₹304.30 crore in Q1FY27 after lower runs in previous periods. Operating profit margins recovered from a negative position in Q2FY26 (-7.41%) to positive territory in subsequent quarters, reaching 4.92% in Q4FY26 and 1.25% in Q1FY27. Net profit followed a similar trajectory, turning positive from a loss in Q2FY26.
| Quarter | Revenue (₹ crore) | Net profit (₹ crore) | OPM (%) |
|---|---|---|---|
| Q1FY27 | 304.30 | 1.10 | 1.25% |
| Q4FY26 | 277.20 | 8.70 | 4.92% |
| Q3FY26 | 128.40 | 6.30 | 6.35% |
Revenue growth
As Highway Infrastructure sustained order wins, particularly in the recent quarter, its annual revenue grew from ₹504.50 crore in FY25 to ₹633.40 crore in FY26, representing a YoY growth of +25.6% based on the latest annual data. This growth aligns with the company's ability to execute on its existing portfolio.
Working capital and execution capacity
The company maintains a healthy liquidity position with a current ratio of 2.09x and a total liabilities/equity ratio of 0.65x, indicating low leverage and sufficient short-term assets to cover liabilities. However, operating cashflow was negative at -₹4.90 crore in FY25, while free cashflow stood at -₹6.60 crore. This disconnect between accounting profits and cash generation suggests that receivables or working capital cycles may be stretched.
Key observations
- Client diversification: The new NHAI order reinforces the company's strong presence with national highway authorities alongside its recent state-level wins.
- Margin stress: Operating profit turned negative in Q2FY26; execution stress was visible in quarterly data, though margins recovered in subsequent quarters.
- Cash conversion: Operating cashflow of -₹4.90 crore in FY25 indicates the backlog is not converting to cash efficiently; receivables or working capital cycles may be stretched.
Historical Stock Returns for Highway Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.40% | +3.44% | -1.01% | +9.82% | -43.39% | -62.68% |
How will the short 90-day duration of the new NHAI order impact Highway Infrastructure's ability to sustain its current quarterly revenue run-rate beyond Q3FY27?
Given the negative operating cash flow in FY25, what specific working capital management strategies is the company implementing to improve cash conversion from its ₹1017 crore order book?
Can the company maintain or expand its operating profit margins above 5% in upcoming quarters despite the historical volatility and previous negative margin periods?
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