Ladies and gentlemen. Good evening. Welcome to the IRB Infrastructure Developers conference call for discussing the financial results for quarter and half-year ended 30 September 2025, along with the recent developments. We have with us on the call today Mr. Virendra Mhaiskar, Mr. S. S. Rana, Mr. Anil Yadav, Mr. Mehul Patel, Ms. Poonam Nishal, and Mr. Tushar Kawedia. As a reminder, all participant lines will be in listen-only mode, and after the opening remarks by the management, there will be a question-and-answer session. Please note that the duration of the call would be 45 minutes, and any query left unanswered after the call can be subsequently mailed to the management for educated response and resolution. Please note that this conference is being recorded. I now request Mr. Yadav to give you an overview of significant developments during the quarter. Thank you, and over to you, sir.
Thank you. Good evening, everyone. I extend a warm welcome to all investors and analysts joining us for our earning call to discuss the result for Q2 of financial year 2025-2026. I trust you have reviewed the detailed financial and accompanying presentation. Allow me to briefly highlight the key development during the quarter. Our private investors reported per-day toll collection of INR 11.23 crore for the quarter ended September 2025, compared to INR 9.94 crore per day in the same quarter last year, a growth of 13%, driven by the healthy traffic momentum and tariff revision. On a combined basis, that is, private investors and IRB portfolio put together, the per-day toll collection has reached INR 18.13 crore, up from INR 16.34 crore last year, reflecting a growth of 11% year-on-year basis, supported by both traffic growth and tariff revision.
During the quarter, IRB Infrastructure Fund, that is, the public investor, has successfully completed the acquisition of the three revenue-generating highway assets with a combined enterprise value of INR 8,436 crore. The acquisition was backed by robust participation from market global and domestic investors, infusing INR 4,250 crore into the public investor. This transaction marks a significant milestone for IRB growth, strengthening our investment platform and unlocking a capital of INR 4,905 crore for IRB. The proceeds will enable us to pursue the upcoming opportunity worth over INR 15,000 crore, aligning with our vision to achieve a development portfolio of INR 140,000 crore over the period of three years. The acquired assets have also enhanced our O&M order book meaningfully.
The strong investor participation underscores the trust and credibility of IRB Group built over the past three decades and reaffirms the strength of our investment framework as a transparent, scalable, and reliable platform for long-term infrastructure growth and investment. This is a win-win transaction for both investors to expand their portfolio, enhance the distribution, and continue creating sustainable long-term value for their stakeholders. We are also pleased to share that VM7 Expressway Private Limited has achieved the provisional COD for its [at line] Gandeva-Ena Expressway project in Gujarat. A key stretch between Delhi to Mumbai Greenfield Expressway is implemented under the HAM model. With this, the project becomes eligible for biannual NUT for the next 15 years, generating approximately INR 170,000 crore-INR 180,000 crore annually as a stable NUT revenue.
The project is also executed with a strong focus on sustainability, including the water conservation and reuse of the Sujalam Sufalam Initiative , making it a water-positive project. The company has declared a second interim dividend, resulting in a payout of INR 42 crore to its shareholders in line with the dividend policy. Private investors have declared a distribution of approximately INR 34 crore, contributing proportionally to IRB's cash flow based on the 51% holding. Public investors have declared a distribution of INR 192 crore in Q2 of FY 2026. Based on its 17% holding, IRB is expected to receive around INR 32 crore in the cash flow. The order book now stands at around INR 32 ,000 crore, including the EPC order book of roughly INR 1,500 crore . We also continue to evaluate the upcoming opportunity for the new BOT and TOT projects with a clear bidding pipeline which is available for the next 30 days.
There are more than six or seven BOT assets which will get bidded out based on the timeline provided by the authorities. Those will get bidded out in the next 30 days, and around five to six TOT projects also will be bidded out over the period of the next one month. Now, I will request Tushar to cover the financial highlights for Q2 FY 2026. Over to you, Tushar.
Thank you, sir. Now, I'll take you through the financial analysis for Q2 FY 2026 versus Q2 FY 2025. The total consolidated income for Q2 FY 2026 has increased to INR 1,800 crore from INR 1,752 crore, registering a growth of 3%. The income from investment and related segments for Q2 FY 2026 has increased to INR 303 crore from INR 129 crore, registering a growth of 135%. The income from BOT segments for Q2 FY 2026 has increased to INR 626 crore from INR 581 crore, registering a growth of 8%. Income from construction segments for Q2 FY 2026 has decreased to INR 820 crore from INR 1,005 crore, down by 18%. The other income for Q2 FY 2026 has increased to INR 49 crore from INR 37 crore, increased by 34%. EBITDA increased to INR 974 crore from INR 933 crore, an increase of 4%. Interest cost increased to INR 451 crore from INR 434 crore, an increase of 4%.
Depreciation cost increased to INR 262 crore in Q2 FY 2026 from INR 231 crore, an increase of 13%. EBITDA has decreased to INR 261 crore from INR 267 crore, a decrease of 2%. PAT has increased to INR 141 crore from INR 100 crore, post-share of JV loss of INR 84 crore, an increase of 41% for the quarter. I would request now the moderator to open the session for questions and answers.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Hi sir, good evening. Just had a couple of questions. One is on the awarding. I believe we have not received any new orders in this quarter, and even YTD NHAI awarding has been very weak at around 500 km. What is the sense which we are getting now for the remaining four to five months of the financial year? Because would it be another year where awarding is weak, or could there be some revival here?
I think, Alok, historically, also the project awarding from the authority was back-ended towards the fag end of the year, and we have started seeing some traction in terms of award. In terms of the bid pipeline, if I will talk about, there is almost six TOT projects from TOT 18 to TOT 22 that is up for bidding in the next one month, and total length is roughly INR 680 crore. There are around eight BOT projects also, six from the NHAI and a couple from the MSRDC, and those are worth INR 30,000 crore. These are also up for the bidding over the period of one month. I think there is a healthy pipeline which is visible for the next one month. We believe that there will be award activity that will start, and we have seen some signs.
I think we believe that there will be award activity starting as we are moving towards the fag end of the year.
Sure. Sir, based on the current run rate, what kind of construction revenue are we expecting? Because the growth has been heavily driven by the toll revenues, right? The core construction, what can be the growth outlook for this year and even the next year, considering the current order backlog and assuming we have some orders in the remaining part of this year?
Sure. Alok, for the current year, what we are estimating with the order book in hand, the revenue should be close to INR 43,000 crore-INR 45,000 crore for the year-end FY 2026. On the O&M front, this includes both EPC and O&M, from a total order book, the order book is INR 32,000 crore. The executable order book in the next one and a half years is close to INR 4,000 crore.
Alok, just to add what Tushar has said, gradually we are moving towards the O&M order book execution. If you look at the O&M order book for the next 10-12 years, it is around INR 30,000 crore. Since we have a concession of 20 years, the weighted average life, whether you take it public invest, private invest, all are ranging towards 20 years.
The O&M order book for the next 20 years will be ranging from INR 60,000 crore-INR 70,000 crore. Even if, because there will be a gradually increasing O&M, and that will be going forward, there will be healthy revenue which will be coming on account of the O&M execution. Earlier, from 10% kind of O&M execution, we have moved to around 25%-30% kind of order execution coming from the O&M. Gradually, we will be moving to almost 50% revenue will be coming from the O&M. That will be steady-state revenue which will be continuing. The moment we move to the 100% O&M, then the visibility for the O&M revenue will have around 15-20 years, and the margin is quite stable.
In terms of the overall margin, in terms of the specs, that will be much better as compared to the EPC revenue. Having said that, as I have already discussed, there is INR 30,000 crore worth of BOT to be bidded out in the next one month. Whenever the opportunity will be there, on the basis of viability and other things, we will be evaluating those opportunities. Gradually, I think EPC will be more shifting for doing the O&M work than the pure play EPC, where one has to struggle for EPC order book for every two years.
Got it. Just last question. Now, after this sale of assets from private to public invest, there is obviously a release of capital. How are we positioning it, and how are we used to best, how are we looking to best use it for our future bidding? Are we also looking at other sectors or any? Because this equity release is definitely a must-required thing, and how do we look to utilize that? That would be my last question.
I think, Alok, as we were discussing, almost there are six TOT which are lined up to be bidded out over the period of one month. If you look at the overall size, maybe around INR 20,000-INR 25,000 crore will be the size of those TOT. As we have already communicated, the INR 5,000 crore proceed will be utilized for the upcoming opportunities, which can cater to around INR 14,000-INR 15,000 crore kind of additional projects. Considering the pipeline available, I think there is enough in the sector. We are not looking to move out of the sector. Probably, considering the pipeline, we should be able to pack the project.
Sure. That's all from my side, sir. Thank you, and all the best.
Thank you, Alok.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Aditya Sahu from HDFC Securities. Please go ahead.
Hello. Hi, sir. I hope I'm audible. Hello.
Yes, sir. Please go ahead.
Yeah, yeah. Sure. As you mentioned, the pipeline, INR 30,000 crore would be the BOT bid pipeline that we have, and INR 25,000 crore would be the TOT bid pipeline. Overall, INR 55,000 crore would be the overall bid pipeline that we have right now.
Yes, Aditya. That is the bid which is lined up over the period of the next one month.
Understood, sir. Understood. Since you have mentioned that you are targeting a revenue of about INR 4,500 crore from EPC and O&M, any sense if you can provide on what sort of margin levels are you looking at?
Margin levels will be in the range of 20%-23% for O&M order book.
Okay. Okay. For the 20%-23% for O&M?
Yeah.
Okay. Understood, sir.
Aditya, just to add what Tushar is highlighting, he is highlighting that there will be a steady-state of O&M which will be coming. Even if we are executing roughly INR 2,000 crore-INR 3,000 crore kind of order book, then roughly INR 750 crore will be the EBITDA margin considering the O&M order book itself over the period of as we will gradually move to 50%-60% of the current execution in the form of O&M.
Understood, sir. Understood. That's it. I had a few questions, but I think you have already answered them. Thank you, Alok.
Thank you.
Thank you. The next question is from the line of Bhavik Shah from Invexa Capital. Please go ahead.
Yeah. Hello, sir. My first question is, when we look at the half-year balance sheet, our net debt comes to INR 1,980 crore, but in the investor presentation, the number is different. Can you help us understand what is included and what is not? One. Second, sir, can you help us provide the breakup of the debt? How much is the private invest debt, how much is the debt on the books for EPC projects, and how much is the debt on the books for BOT and HAM projects?
Yeah. Tushar will provide the breakup of the debt of each segment, but broadly, I will touch upon. I think in terms of if you are looking at the financial which we have given as a disclosure, there the deferred premium also gets counted as a part of overall liabilities. I think if you remove that deferred premium, which is in the case of Ahmedabad-Vadodara, the number which is appearing in the presentation and the number which is appearing in the financial, we get LIM. In terms of if you need a debt breakup, we can provide that. Anyway, that is available in the financial. Primarily, we have a debt at Mumbai-Pune level, Ahmedabad-Vadodara, and two have, but their debt is not that significant. Then the whole co-debt.
When I discuss about the private invest or public invest, private invest, the debt overall EV is roughly INR 63,500 crore, and debt will be close to INR 23,000 crore-INR 25,000 crore. If you look at around 40% is the debt at private invest level. Public invest debt, based on the September financial, is around 25%-28%. I think for IRB, Tushar will provide the breakup of the debt at various levels.
Yeah. If you see, for SPV, the debt would be around INR 7,800 crore, which means the SPV for IRB, which is Mumbai-Pune, Ahmedabad-Vadodara, and the other three HAM assets. The debt is close to INR 78 billion. For IRB and MRM, which is the executing arm, there we have a debt of close to INR 80 billion.
Understood, sir. Sir, what is the debt given to our private invest?
Debt? Can you come again?
Loan given to our private investee?
There is no loan given to private invest from IRB. It's like the receivables are on account of certain claims which are filed with NHAI. There is no loans given separately to the private invest.
Okay. Sir, what is the quantum?
Quantum would be somewhere around INR 35 billion-INR 38 billion.
Okay. Thank you very much, sir. How are the receivables? What are the terms?
Can you come again?
Yeah. In terms of the terms, once the SPV of the private invest will receive those amounts, they will be able to the IRB level.
Okay. Sir, when are the receivables anytime nearer in the near future?
I think that is expected to be received in the next two to three years.
Okay. Understood. Thank you, sir.
Just to share with you, whenever the claim is awarded, that is awarded along with the interest. There is no, as such, any kind of loss to the IRB.
Okay. Thank you, sir.
Thank you. The next question is from the line of Vishal from Antique Stock Broking. Please go ahead.
Yes, sir. Thanks for the opportunity. Am I audible ?
Yes, Vishal, go ahead.
Yeah. Thanks, sir. Sir, first is on construction segment, which you generally provide in the TPT. It has reported almost INR 820 crore kind of revenue in this quarter. Okay. Now, if one has to understand a breakup between O&M and EPC, the EPC order book has fallen by almost INR 600 crore this year. Is it fair to say INR 220 crore is coming from the O&M, and that is kind of quarterly run rate that we could have?
Yes.
Great. Which means probably in the second half, I mean, we execute everything on EPC side, incrementally total revenue in the second half from the construction could be in the range of INR 1,900 crore-INR 2,000 crore. That's fair to understand.
That's right. That's right.
Got it, sir. Second, sir, there was a media report which talked about, I mean, we have won a big order in TOT 17, or maybe we are L1 in the TOT 17. Can you give some update? What is the status out there, and by when, I mean, the complete formalities, and when we can get a revenue, and how we plan to fund it?
I think we are yet to receive the official communication from the NHAI. Once we receive the official communication from the NHAI, we can share the further details on the same. Having said that, in terms of if I will talk about the broad yardstick, I think in respect to the merit of the project, we have bid. If you look at the past TOT projects which were awarded a year, year and a half back, there also, the TOT projects are typically awarded at 12x-12.5 x of the revenue multiple. Our bid will be also in the similar range. Additionally, over the period of one and a half years, there is 100 basis point saving in the interest cost. That will be the kind of additional parameter which has changed.
I think considering that, once we'll receive the official communication, we'll share the further details.
Okay. Okay. Sure, sir. Sure, sir. We'll wait for that. Maybe one last thing. You did mention there has been, I mean, after the sale of assets from private to public, and then, I mean, private has cash in the books for the growth plan. Going ahead, the TOT or maybe any BOT, I mean, if you are planning, can this, I mean, directly private invest can do the acquisitions, or, I mean, how it will be structured?
Yes, you're right. The profits that have been received from sale of these three assets are very much available at the private invest end for deployment onto new assets. As we explained earlier, the TOT opportunity looks to be very promising. Certainly, these profits will come in very handy to take care of those equity requirements.
Okay. And then the TOT 17, I mean, so this is with the private invest, or it is by the IRB?
Yes. We have been bidding all the TOT projects through the private invest platform.
Okay. Okay.
Year 12 and 13 were also bid through the private invest platform.
Okay. Got it, sir. Got it. I think that's all from my side, sir. Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of the question and answer session. I now hand the conference over to the management for the closing comments.
Thank you very much for joining this call. Thank you.
Thank you. Thank you, sir. Ladies and gentlemen, this concludes this conference for today. We thank you for your participation and for using Researchbytes conference services. You may please disconnect your lines now. Thank you. Have a great evening ahead.