HG Infra Engineering Limited announced that its wholly owned subsidiary, HG Bahuvan Jagarnathpur Highway Private Limited, has received the appointed date for a major highway project in Uttar Pradesh. The company informed stock exchanges on January 16, 2026, that the Superintending Engineer National Highways Circle PWD Lucknow has declared the appointed date for the project's commencement.

Project Details and Specifications

The highway project involves comprehensive improvement and up-gradation work on the newly declared NH 227B stretch, specifically the Bahuvan Madar Majha to Jagarnathpur section. This segment, also known as the "84 Kosi Parikrama Marg," represents a significant infrastructure development in Uttar Pradesh.

Recent Financial Performance

HG Infra Engineering reported challenging second quarter results, with net profit declining significantly year-on-year. The company's financial performance reflected margin pressures despite stable revenue growth.

Project Scope and Strategic Impact

The project encompasses the transformation of the highway stretch into a two-lane configuration with paved shoulders, enhancing connectivity and safety standards along this crucial route. The Hybrid Annuity Mode structure indicates a public-private partnership approach, combining elements of both Engineering, Procurement, and Construction (EPC) and Build, Operate, Transfer (BOT) models. The company confirmed that the project award and execution fall within the normal course of business.

Market Performance and Outlook

Shares of HG Infra Engineering ended at ₹684.40, down by ₹10.90, or 1.57%, reflecting market sentiment amid the mixed financial results. The appointed date declaration marks the formal commencement authorization for this substantial infrastructure project, representing a significant addition to the company's portfolio in the highway development sector under the Hybrid Annuity Mode framework.

H.G. Infra Engineering Limited has received a significant income tax demand notice from the Income Tax Department, marking another development in an ongoing tax assessment matter for the assessment year 2018-19.

Tax Demand Details

The company received the demand notice on January 06, 2026, under Section 154 of the Income Tax Act, 1961. The notice follows an earlier assessment order under Section 143(3) that the company had previously disclosed to stock exchanges in March 2025.

Company's Position and Response

H.G. Infra Engineering has strongly contested the tax department's action, stating that the order is entirely contrary to principles of natural justice and lacks factual authenticity. The company emphasized that relevant details were presented before the Assessing Officer during the assessment proceedings.

The infrastructure company has outlined its legal strategy to challenge the demand:

• Already filed an appeal against the original assessment order under Section 143(3)
• Plans to file an appeal against this demand notice before appellate authorities
• Expects a favorable outcome based on the merits of the matter and prevailing law
• Has engaged legal counsel for the proceedings

Financial and Operational Impact

The company has clarified that there is no immediate impact on its financial position, operations, or other business activities due to this demand notice. H.G. Infra Engineering maintains confidence in its position and expects to successfully contest the demand through the appellate process.

Regulatory Compliance

The disclosure was made pursuant to Regulations 30 & 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has committed to informing stock exchanges of any material developments in this matter as required under Regulation 30(7) of the SEBI Listing Regulations.

The notice was signed by Ankita Mehra, Company Secretary & Compliance Officer, and submitted to both BSE Limited and National Stock Exchange of India Limited for regulatory compliance.