Highway Infrastructure Limited’s two new toll-collection contracts total ₹431.86 crore, while its latest reported quarter showed a steep profit decline despite a sharp increase in income year over year.
Company filings show that the National Highways Authority of India (NHAI) awarded the company a one-year contract worth ₹340.08 crore for Palayam Fee Plaza in Tamil Nadu, disclosed Oct. 23. A second one-year award, for Baiti Kala Fee Plaza in Uttar Pradesh, was valued at ₹91.78 crore in an Oct. 26 filing. Both include upkeep of nearby toilet blocks.
The awards cover toll collection and related operations. Highway Infrastructure’s FY26 annual report says the operator owes NHAI set amounts on a daily or weekly schedule, even if toll receipts fall short. Traffic above projections can improve returns after those payments, so the contracts’ stated values do not indicate the company’s profit from them.
Mint reported Oct. 29 that Highway Infrastructure shares had climbed from ₹43.26 to ₹71.80 over a month, a gain of more than 65%. The company’s filings confirm the contract awards but do not establish what drove the share-price movement.
For the quarter ended June 30, total income increased 170.6% to ₹304.3 crore from ₹112.5 crore a year earlier. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined to ₹4.8 crore from ₹12 crore, and its margin narrowed to 1.6% from 10.7%. Profit after tax fell to ₹1.1 crore from ₹7.2 crore. Highway Infrastructure said lower traffic at some toll projects, amid weaker freight movement and global trade disruption, weighed on results. Managing Director Arun Kumar Jain cited an order book of ₹789 crore as providing revenue visibility.
The board has proposed issuing as many as one crore warrants to the promoter group at ₹49.82 each, for a maximum of ₹49.82 crore. The terms let each holder take one share during an 18-month exercise period, subject to shareholder and other required approvals. If all warrants are converted, the new shares would reduce existing shareholders’ percentage ownership.
The board also proposed buying 51% of Indore Highway Real Estates Private Limited for ₹38.99 lakh. The company filing classifies the proposed transaction as related-party because some sellers are connected to directors. The target reported no turnover in FY2024-25 or FY2025-26.
Shareholders are scheduled to consider the warrant issue and an increase in authorized capital at an extraordinary general meeting on Nov. 13.
