H.G. Infra Engineering shares experienced a sharp decline of 7% on January 23, 2026, following corruption-related raids conducted by the Central Bureau of Investigation (CBI) and Anti-Corruption Bureau (ACB Patna). The stock touched a day low of ₹616.30, down from the previous day's closing price of ₹663.20. With a market capitalisation of ₹4,029 crores, the infrastructure company has delivered robust returns of 188% over the past five years, significantly outperforming the NIFTY 50's return of 76%.

Investigation Details

H.G. Infra Engineering informed the exchanges that CBI and ACB (Patna) officials conducted searches on January 21, 2026, under case RC 0232026A0005 related to the Prevention of Corruption Act. The comprehensive search operation covered multiple locations and extended through the night.

The company stated it has been fully cooperative with the investigation, though specific details about the allegations or potential financial impact have not been disclosed. Management emphasized that daily operations remain unaffected despite the ongoing investigation.

Financial Performance Analysis

The company's Q2 FY26 financial results present a mixed picture, with revenue showing marginal growth year-over-year but significant quarterly decline. The consolidated revenue from operations demonstrates the challenges faced during the quarter.

The company maintains a robust order book valued at ₹13,933 crores, approximately three times its FY25 revenue, providing substantial revenue visibility for future periods.

Order Book Distribution

The geographical distribution of H.G. Infra Engineering's order book reflects its pan-India presence across different regions, with significant concentration in western markets.

Business Operations

H.G. Infra Engineering operates as a comprehensive infrastructure company specializing in engineering, procurement, and construction (EPC) services across India. The company's diverse portfolio includes:

• Road and highway construction projects
• Bridge and flyover development
• Railway infrastructure
• Metro rail projects
• Solar power plant construction
• Water sector infrastructure

The company executes projects under both turnkey basis and hybrid annuity model arrangements, providing flexibility in project delivery and revenue recognition.

Market Impact

The stock's decline reflects typical market reaction to regulatory investigations, where investors often respond cautiously to legal uncertainties and potential reputational risks. Such investigations can create short-term volatility even when business operations continue normally, as market participants assess potential penalties, compliance costs, and long-term reputational impact on the company's ability to secure future contracts.

McNally Bharat Engineering Company Limited has disclosed receiving a significant order from the Employees Provident Fund (EPF) Authority regarding recovery of dues amounting to ₹3.96 crores. The company informed stock exchanges on January 21, 2026, about this regulatory development affecting its Kumardhubi establishment.

EPF Authority Order Details

The Regional Provident Fund Commissioner-I, Regional Office, Ranchi issued the order on January 14, 2026, which was received by the company on January 20, 2026. The order pertains to the company's establishment situated at Kumardhubi, Dhanbad, Ranchi.

Nature of Recovery Action

The EPF Authority has passed the order under section 8F of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, for recovery of provident fund dues and damages under section 7Q of the Act. The recovery action specifically targets dues from February 17, 2024, onwards for the Kumardhubi establishment.

Company's Legal Response

McNally Bharat has taken proactive legal measures to contest the EPF demand. The company had previously challenged the demand notice from the EPF Authority before the Central Government Industrial Tribunal (CGIT), Dhanbad. The case has been registered as EPFA 20/2025, and subsequently, a writ petition has been filed at the appropriate forum.

Financial Impact Assessment

Regarding the financial implications, McNally Bharat has stated that there will be no material financial impact on the company except to the extent of the amount mentioned in the EPF order. The company quantified the potential impact at ₹3.96 crores, representing the total recovery amount specified by the EPF Authority.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, demonstrating the company's commitment to transparency with stakeholders. This communication serves as a continuation of the company's earlier letter dated December 12, 2025, regarding the same matter.

The company's proactive legal challenge through the tribunal system indicates its intention to contest the EPF Authority's demand while maintaining full regulatory compliance through timely disclosures to stock exchanges.