Highway Infrastructure Limited , a diversified infrastructure company, has reported strong financial performance for the second quarter of fiscal year 2026. The company, which recently held its first earnings conference call since listing, showcased significant growth in key financial metrics.

Financial Highlights

For the half-year ended September 30, 2025, the company reported:

• Total revenue of Rs. 227.80 crores, compared to Rs. 226.80 crores in H1 FY25
• EBITDA of Rs. 25.80 crores, a 102% year-on-year increase
• EBITDA margin of 11.30% for H1 FY26

Operational Highlights

Highway Infrastructure Limited operates across three verticals:

1. EPC Infrastructure
2. Tollway Collection
3. Real Estate

The company has achieved its highest-ever order book of Rs. 775.00 crores, marking a 46% increase in H1 FY26. This growth is attributed to:

• Commencement of toll collection at multiple new plazas
• Securing new EPC contracts

Financial Position

The company maintains a strong balance sheet with:

• A debt-to-equity ratio of 0.28x
• Net cash equivalents of Rs. 52.80 crores

Future Outlook

Management has provided guidance for the coming quarters and fiscal years:

• Expectation of 60-65% of annual revenue to be booked in Q3 and Q4
• Target EBITDA margins of 8-12% for FY27-28
• Aim to achieve an order book of Rs. 1,000.00 crores by year-end

IPO Fund Utilization

The company recently completed its Initial Public Offering (IPO), raising net proceeds of Rs. 81.85 crores. As of September 30, 2025:

• Rs. 44.72 crores have been utilized
• Rs. 37.13 crores remain unutilized and are currently invested in fixed deposits and bank accounts

The funds are being deployed primarily for working capital requirements in the EPC and Toll segments, as well as for general corporate purposes.

Highway Infrastructure Limited's strong performance in Q2 FY26, coupled with its growing order book and strategic fund utilization, positions the company for continued growth in the infrastructure sector. The management's focus on expanding across multiple verticals and geographical areas suggests a robust outlook for the coming quarters.

Highway Infrastructure Limited (HIL) has submitted its monitoring agency report for the quarter ended September 30, detailing the utilization of funds raised through its Initial Public Offering (IPO). The report, prepared by Infomerics Valuation and Rating Limited, indicates that the company has adhered to its stated objectives without any material deviations.

IPO Fund Allocation and Utilization

HIL raised Rs. 97.52 crores through a fresh issue of shares, with net proceeds of Rs. 81.85 crores after deducting issue expenses of Rs. 15.67 crores. The company has reported the following utilization of funds during the quarter:

Working Capital Deployment

The company has bifurcated its working capital utilization into two segments:

1. EPC – Working Capital: Rs. 13.89 crores disbursed to various counterparties for materials, services, and project execution expenses.
2. Toll – Working Capital: Rs. 29.95 crores paid to toll plaza entities and project offices associated with the National Highways Authority of India (NHAI).

Unutilized Funds Management

The remaining Rs. 37.13 crores of unutilized funds have been deployed in fixed deposits with HDFC Bank, earning returns between 5% to 5.25%. This approach ensures that the idle funds continue to generate returns while awaiting deployment for their intended purposes.

Compliance and Monitoring

Infomerics Valuation and Rating Limited, the appointed monitoring agency, reported no deviation from the disclosed objects and no material deviations from the expenditures mentioned in the offer document. The company's statutory auditors, Anil Kumar Garg & Co., have certified that the funds were utilized as per the prospectus with no material deviations observed.

Management Commentary

While the report does not include direct quotes from the management, the adherence to the stated objectives and the strategic deployment of funds suggest a disciplined approach to capital allocation by Highway Infrastructure Limited.

The company's decision to park unutilized funds in fixed deposits demonstrates a prudent financial management strategy, balancing the need for liquidity with the desire for returns on idle capital.

As Highway Infrastructure Limited continues to execute its growth plans, investors and market observers will likely keep a close eye on future fund utilization reports to gauge the company's progress in achieving its stated objectives and its ability to generate returns from the capital raised through the IPO.