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.

Highway Infrastructure Limited (HIL), a leading player in the infrastructure sector, has announced its financial results for the second quarter of fiscal year 2026, showcasing robust performance across key metrics. The company has also appointed a new independent director to strengthen its board.

Financial Highlights

HIL reported a significant increase in profitability for Q2 FY26. The company's consolidated profit after tax (PAT) surged to ₹96.68 crore, marking a substantial rise from ₹2.61 crore in the same quarter of the previous year. This impressive growth in PAT demonstrates the company's ability to enhance its bottom line effectively.

The company's total income for Q2 FY26 stood at ₹1,153.11 crore, compared to ₹1,193.94 crore in Q2 FY25. Despite a slight decrease in total income, HIL managed to significantly improve its profitability, indicating enhanced operational efficiency.

Segment-wise Performance

HIL's business is primarily divided into three segments: Tollway Collection, EPC Infra, and Real Estate. For the half-year ended September 30, 2025, the revenue mix was as follows:

This diversified revenue stream highlights the company's strong presence across different infrastructure sectors.

Balance Sheet Strength

As of September 30, 2025, Highway Infrastructure Limited reported a robust financial position:

• Total Assets: ₹3,087.81 crore
• Net Worth: ₹2,111.06 crore
• Cash and Cash Equivalents: ₹19.93 crore

The company's strong balance sheet provides a solid foundation for future growth and expansion opportunities.

Appointment of New Independent Director

In a move to enhance its corporate governance, HIL's Board of Directors has approved the appointment of Mr. Vinayak Parkhi as an Additional Director (Non-Executive Independent Director). Mr. Parkhi's appointment is for a tenure of five consecutive years, effective from November 6, 2025, to November 5, 2030, subject to shareholder approval.

Mr. Parkhi brings over three decades of rich experience in the banking and housing finance sector. He is a Chartered Accountant and has had an illustrious career with HDFC Limited, where he served as Regional Business Head and later as Senior Vice President. His expertise in driving business growth, enhancing customer engagement, and formulating effective business strategies is expected to add significant value to HIL's board.

Management Commentary

While specific management comments were not provided in the available data, the company's financial performance suggests effective execution of its business strategies and operational improvements across its diverse business segments.

Highway Infrastructure Limited's strong Q2 FY26 results, coupled with the appointment of an experienced independent director, position the company well for continued growth in the infrastructure sector. Investors and stakeholders will likely keep a close watch on how these developments translate into long-term value creation for the company.