Innovision Limited faces a financial hit after the National Highways Authority of India (NHAI) approved the forfeiture of ₹1.60 crore in performance security and imposed a ₹3.60 lakh penalty.

The order, received on September 10, 2026, stems from a forensic audit that identified excess user fee collection through Electronic Toll Collection (ETC) systems at the company’s Diengpasoh Fee Plaza in Meghalaya.

Regulatory Action Details

The NHAI invoked Clause 18(a) of the contract agreement dated June 10, 2022. This clause mandates the forfeiture of part of the performance security—equivalent to 15 days’ agreed remittance—after three incidents of penalty for excess charging are recorded.

The specific violation cited involves an alleged excess charge of ₹240 across eight FASTag transactions on September 3, 2022. This incident was the third such instance, triggering the contractual penalty mechanism.

Financial and Operational Impact

The forfeited amount relates to the user fee collection agency engagement at the Shillong Bypass connecting NH-40 and NH-44. Since the specific performance security is not currently available with the Regional Office in Guwahati for adjustment, NHAI has reserved the right to recover the funds from other ongoing contracts or the Common Bank Guarantee held with NHAI headquarters.

Legal Response

Innovision plans to file a Writ Petition before the appropriate court to challenge the forfeiture order. The company aims to seek relief in accordance with applicable laws while keeping stock exchanges informed of further developments.

Innovision has secured a new order worth ₹243.6 crore from the National Highways Authority of India (NHAI). The contract involves engagement as a user fee agency for IDTL A and IDTL B fee plazas on the six-laning of the Indore-Dewas section of NH-3, and at Pachwara Fee Plaza on the four-laning of the Jhansi-Khajuraho section of NH-39 in Madhya Pradesh.

The scope includes toll collection and upkeep of adjacent toilet blocks. The order has a duration of 1 year and was disclosed to exchanges on September 9, 2026.

Order in Financial Context

At ₹243.6 crore, this order adds to the total disclosed order book of ₹580.01 crore across 18 orders in the last three fiscal quarters. The win reinforces Innovision's focus on highway user fee collection mandates. The order book coverage stands at 2.25 quarters of average quarterly revenue, indicating strong visibility into future earnings streams from these long-term contracts.

Company Order Track Record

Order inflow remains robust in Q2FY27, with the current quarter recording ₹353.30 crore across 5 orders. This latest win from NHAI continues the trend of securing contracts in the highway sector.

Execution and Revenue Quality

Innovision reported revenue of ₹267.30 crore in Q1FY27, though net profit turned negative at -₹7.40 crore due to operating pressures. Operating profit margins contracted to -3.82% in the quarter. However, annual data shows revenue growth of +9.5% to ₹980.78 crore in FY26, with net profit rising by +23.4% to ₹35.78 crore. The company maintains a healthy return on capital employed (ROCE) of 53.08% and return on equity (ROE) of 35.45% for FY25.

Working Capital and Execution Capacity

The balance sheet shows total assets of ₹473.80 crore and total equity of ₹294.20 crore as of FY26. The current ratio stands at 2.55x, providing adequate liquidity for operations. However, operating cash flow was negative at -₹21.90 crore in FY25, highlighting potential working capital strains as the company executes its growing order book.