| Market Cap | ₹312.7 CrCement & Const. |
|---|---|
| Revenue TTM | ₹799.33 CrOperating |
| P/E Ratio | 12.09Industry 15.26 |
| Order from | Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) |
| Execution period | 02 Year |
| Deal value | ₹220.66 Cr |
| Share of market cap | 70.6% |
| Share of annual revenue | 27.6% |
Key highlights
- Total contract value stands at ₹220.66 crore for a two-year execution window
- First-year payment fixed at ₹105.08 crore with a 10% escalation in the second year
- Project scope includes toll plaza operations and deployment of four patrol vehicles
- Order issued by the Uttar Pradesh Expressways Industrial Development Authority
- Company maintains a strong promoter holding of 70.04% as of the latest filing
What Is the Order?
Highway Infrastructure Limited has been awarded a comprehensive service contract for the Gorakhpur Link Expressway by UPEIDA. The mandate involves the collection of user fees and the management of toll plaza operations along the corridor. Furthermore, the company will deploy four patrol-cum-safety vehicles with trained personnel to manage safety on the expressway.
The contract is valued at ₹220,66,33,332 for two years. The first-year remuneration is set at ₹105,07,77,777, featuring a 10% annual escalation clause that will take effect after the first year to account for operational cost adjustments and service scaling.
Client Profile
The contract was awarded by the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency for expressway development in India's most populous state. UPEIDA is responsible for a vast network of infrastructure projects, including the Agra-Lucknow and Purvanchal Expressways. The Gorakhpur Link Expressway is a 91-kilometer greenfield project designed to connect the city of Gorakhpur with the Purvanchal Expressway.
By selecting Highway Infrastructure Limited, UPEIDA ensures specialized tolling and safety oversight on this strategic artery, which is vital for enhancing logistics and regional connectivity across eastern Uttar Pradesh.
Financial Context
- The company's P/E ratio of 12.09 remains lower than the broader industry average of 15.26 and sector average of 32.27
- Trailing twelve-month revenue reached ₹799.33 crore, supported by a 170.91% YoY quarterly revenue growth
- Operating profit margins for the most recent quarter stood at 1.25% amidst a high-volume growth phase
- Annual ROE is recorded at 14.04%, which compares favorably against the sector average of 12.96%
- Promoter holding remains stable at 70.04% with zero pledged shares reported in the latest cycle
Business Impact
This order significantly enhances the company's revenue visibility over the medium term, as the contract value of ₹220.66 crore is substantial relative to its current market capitalization of ₹312.7 crore. Securing a project from a state-run entity like UPEIDA reinforces Highway Infrastructure's credentials in the specialized operations and maintenance (O&M) segment of the infrastructure sector. The 10% annual escalation clause provides a structured mechanism to protect margins against inflation.
This win strengthens the company's position as a recurring service provider in the high-growth road and highway management industry in North India.
| Share price | ₹43.6 |
|---|---|
| Market capitalisation | ₹312.70 Cr |
| Revenue (annual) | ₹608.00 Cr |
| Net profit (annual) | ₹32.06 Cr |
| Revenue (latest quarter) | ₹303.28 Cr+10.44% vs previous quarter |
| Net profit (latest quarter) | ₹1.06 Cr-87.98% vs previous quarter |
| P/E (TTM) | 12.09×Sector 32.27× |
| Promoter holding | 70.04%0.00% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Highway Infrastructure Limited announcing the receipt of a Letter of Acceptance for the Gorakhpur Link Expressway project. Market figures from a third-party data provider.
