H.G. Infra Engineering has been declared the successful bidder by REC Power Development and Consultancy Limited, a wholly owned subsidiary of REC, for the development of the WR-ER Inter-Regional Network Expansion Scheme Part C in Jharkhand. According to latest reports, the company secured the project under the tariff-based competitive bidding process. The awarded project involves establishing an inter-state transmission system on a build, own, operate and transfer (BOOT) basis for a period of 35 years with an execution timeline of 30 months. As confirmed by REC Power Development and Consultancy Limited, the order was awarded by a domestic entity, with the promoter, promoter group, or group companies not holding any interest in the contracting entity.
The awarded project carries annual transmission charges of ₹1,145.34 million, representing a significant revenue stream for H.G. Infra Engineering over the 35-year contract duration. This transmission project adds to the company's infrastructure portfolio beyond its traditional road construction and maintenance business. The contract disclosure was made to the exchanges pursuant to Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the transaction not falling within related party transactions.
H.G. Infra Engineering reported a challenging Q4FY26 performance with standalone revenue, EBITDA and PAT declining ~31%, 55% and 55% YoY respectively, according to Prabhudas Lilladher's research report dated May 30, 2026. The decline was attributed to slower project execution and subdued order inflows during FY26. However, management expects recovery from Q2FY27, supported by improving execution, claim settlements and ramp-up of recently awarded projects. The company has guided for FY27 revenue of ~₹65 billion (+14% YoY) and EBITDA margins of ~14%.
The company has outlined a comprehensive deleveraging roadmap, with standalone debt expected to decline from ~₹16.3 billion to ₹8–10 billion by H1FY27, aided by HAM asset monetisation, solar project debt drawdowns and working capital normalisation. Prabhudas Lilladher maintains an Accumulate rating with a target price of ₹670, valuing the EPC business at 8x FY28 EPS and investments at book value. The brokerage factors in execution of ₹60 billion/₹69 billion and EBITDA margins of ~12% over FY27/FY28, reflecting cost inflation and an increasing share of lower-margin projects. Order book visibility remains healthy at ~₹157 billion (post Q1FY27 wins), while diversification into transmission, BESS and renewable energy continues to broaden the business mix beyond roads.
