Good morning, ladies and gentlemen. Welcome to the IRB Infrastructure Developers conference call for discussing the financial results for the quarter and half year ended September 30th, 2026, along with recent developments. We have with us on the call today Mr. Virendra Mhaiskar, Mr. S.S. Rana, Mr. Anil Yadav, Mr. Tushar Kawedia, Ms. Poonam Nishal, and Mr. Mehul Patel. As a reminder, all participant lines will be in the 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 30 minutes, and any queries left unanswered after the call can be subsequently mailed to the management for adequate response and resolution. Please note that this conference is being recorded. I now request Mr. Yadav to give you an overview of the significant developments during this quarter. Thank you, and over to you, sir.
Thank you. Good morning and warm welcome to all the investor and analysts joining us for our earnings call to discuss the result for Q2 of financial year 2026, 2027. I trust you have had an opportunity to review our detailed financial result and the accompanying investor presentation. Let me briefly walk you through the key developments during the quarter. Strategic overview: IRB is fundamentally an asset-led infrastructure platform with an asset base of approximately INR 94,000 crore. Despite geopolitical uncertainty and macroeconomic headwinds, our performance has remained resilient, reflecting the return from the assets built steadily over the years. This is clearly reflecting in our toll revenue across our 100% subsidiary, Private InvIT and Public InvIT. Toll revenue across the group has grew around 24% year-on-year basis this quarter. This was supported by steady traffic growth and tariff revision linked with the inflation.
India's domestic growth remains our strongest anchor, and the government's continued support for public-private partnership gives the sector a strong runway. Business update: During the quarter, IRB InvIT Fund, our Public InvIT, took another important step forward. It acquired two operational highway assets from the Private InvIT, that is IRB Infrastructure Trust, with an aggregate enterprise value of INR 4,605 crore. The transaction attracted strong interest from the leading global and domestic investor and brought an equity of INR 2,000 crore into the fund. IRB has also participated in preferential issue by the fund and invested INR 351 crore. For the IRB Group, this is a significant step to our asset monetization strategy. IRB Infrastructure Trust realizes equity consideration of around INR 2,744 crore. This is non-dilutive capital that strengthens the group balance sheet and financial flexibility. The transaction also adds these assets to our O&M order book.
Equally important, this capital recycling positions us to pursue new opportunity worth about INR 8,000 crore-INR 10,000 crore without stretching our balance sheet. The response from the investor reflects the confidence we have earned through more than three decades of developing, operating, and managing the highway infrastructure. It also shows the growing acceptance of InvIT structure as an effective way of recycle capital and attract the long-term investment into infrastructure. The transaction benefits both InvIT platform. It helps them to scale their asset portfolio, strengthen the cash flow, and improve the potential for sustained distribution to the investors. At the same time, it lets the group focus on new growth opportunity using its established capability in the project development and operation. On operational performance, our 100% subsidiary continued deliver the strong performance. Year-on-year, gross toll revenue collection on Mumbai-Pune Expressway and Ahmedabad-Vadodara Expressway grew 14% and 16% respectively.
Overall growth about 15% to our wholly owned portfolio. Out of the 15%, around 10% was the traffic growth and 4%-5% tariff growth. Our Private InvIT revenue has also grew. Daily revenue, per day revenue is around INR 13.1 crore for the quarter ended 30th September 2026, compared with INR 9.2 crore in the same quarter last year. That is about 42% year-on-year growth on like-to-like basis. This excludes three asset transfer to the Public InvIT. The growth is also driven by the healthy traffic momentum and asset of new asset addition and the tariff revision. Distribution: The strong growth in the toll collection on both InvIT platforms has translated into significant higher cash distribution, further strengthening the IRB's recurring cash flow. The Private InvIT has declared a distribution around INR 231 crore in Q2 of FY 2027.
IRB's 51% stake translates to INR 118 crore as compared to INR 26 crore in the same quarter last year. That is an increase of 354% on year-on-year basis. It was driven by the three new revenue streams, newly acquired TOT project, that is the TOT 17 and TOT 18, and completion of the Ganga Expressway during the year. IRB has made no additional funding commitment in any of these projects. This shows our model at work. The InvIT platform keeps adding to the company's cash flow while improving overall financial flexibility. The Public InvIT distribution of about INR 269 crore in Q2 of FY 2027, IRB's effective holding is around 16%. Company expects to receive around INR 43 crore as compared to INR 32 crore in Q2 of FY 2026. This is about 35% growth on year-on-year basis.
Overall, substantial increase in the distribution reflects the strong performance of the underlying asset and the smooth integration of newly acquired assets and effectiveness of InvIT-led monetization. Dividend and order book. In line with the company's dividend policy, the company has declared an interim dividend of INR 60 crore for Q2 of FY 2027. Our total order book is around INR 43,400 crore, including an EPC order book of INR 1,200 crore. In terms of outlook, looking ahead, we believe the capital-light approach will be an important driver for our next phase of growth. It further establishes IRB's leading infrastructure sponsor and O&M operator. Building on our INR 94,000 crore kind of asset base, we remain firmly on track to reach around INR 140,000 crore kind of asset base by FY 2030, creating a sustainable long-term value to all our stakeholders. With this, I conclude my opening remark.
Now I will request Tushar to take through a financial highlight for Q2 of FY 2027. Over to you, Tushar.
Thank you, sir. I'll take you through the financial analysis of Q2 FY 2027 vs Q2 FY 2026. The total consolidated income for Q2 FY 2027 has increased to INR 1,945 crore from INR 1,800 crore, registering a growth of 8%. The income from InvIT and related asset segment have increased to INR 356 crore from INR 303 crore, registering a growth of 17%. The income from BOT segments have increased to INR 721 crore from INR 627 crore, registering a growth of 15%. The income from construction segment have increased to INR 821 crore from INR 820 crore. The other income for Q2 FY 2027 decreased to INR 47 crore from INR 49 crore, down by 4%. EBITDA has increased to INR 1,102 crore from INR 974 crore, registering a growth of 13%. Interest cost decreased to INR 388 crore from INR 451 crore, a decrease of 14%.
Depreciation has increased to INR 329 crore from INR 262 crore, an increase of 26%. PBT has increased to INR 385 crore from INR 261 crore, an increase of 48%. PAT has increased to INR 260 crore from INR 141 crore, increase of 85% on year-on-year basis. Now I request moderator to open the session for question 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 your touchtone 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 comes from the line of Alok Deora with Motilal Oswal Financial Services Limited. Please go ahead.
Hi, good morning, sir. Just wanted to understand that what is the situation now in terms of project awarding the TOT projects and which we had been targeting, but some of those are still in the pipeline. So if you can just update on how things are shaping up on that front. Has there been any change in terms of bidding intensity? Because the companies are talking about that the criteria has been tightened and there have been the smallest players might not be able to participate like the way they were. Just wanted your initial thoughts on that.
Yeah, good morning, Alok. Let me wish all of you a very happy Diwali in advance.
Happy Diwali.
To come to your question, you are right that the TOT bids had been delayed a bit, and that was primarily because of the ongoing discussions on the compensation mechanism for the MLFF, the multi-lane free flow that we intend to bring into India. That has been now sorted. A backstop compensation mechanism has been formed up and communicated by NHAI. In view of that, now the TOT bidding has commenced.
The three TOT bids which were under bidding for quite some time have already gone under the hammer. The next set of TOT bids should be out soon and likely to be concluded before March 2027, as per our discussions with the authority. So, there is a promising progress on the TOT side. As regards the HAM or EPC or BOT side is concerned, there have been some changes in the concession agreement, but on the HAM, EPC, I am not very sure that it can prevent frivolous players from coming in. There has been an effort, but we are yet to see if that actually works out to be as envisaged.
Sure. So, any bid pipeline which we have been seeing or we have participated in the BOT toll or the HAM side, and where we see some positive outcome coming up in the next, say, two, three months, because we are now in the active project awarding months. So, any bid pipeline which we have actually participated in?
No, at the moment, there is no BOT or HAM bid where we have submitted a bid as such, but we continue to evaluate. As I said, whenever we have a result, as a corporate practice, we only talk about it if and when we win the project.
Sure. Also, one more of a bookkeeping. Interest costs has actually Interest outgo had actually come down quite drastically in second quarter.
Yeah.
Just wanted to understand, is this the new normal quarterly number or yeah.
Alok, yes, this is a new normal or quarterly number. As you see, in the last year, we have transferred one of the HAM project that was VM7, which was transferred to Public InvIT. So, corresponding interest cost has been reduced for this quarter. And second, we have also got a repayment done in most of the SPVs, like MP and AV. That also led to the reduction in interest costs. Yes, you are right. This quarter number should be new normal going forward. Depending on whatever repayments we are making, corresponding interest reduction will happen.
I think I would like to add to what Tushar said. This will be a new normal of a declining interest payment regime going forward. Because, as you know, there are two wholly owned subsidiaries which form part of our IRB's listed balance sheet. And as those SPVs now significantly start deleveraging, the interest outgo as well as the outstanding loan book will start coming off very aggressively, and you will see the the further reduction coming into on the interest expense side of it.
Sure. Just last question. So, like few quarters back, you were highlighting how big the, again, the BOT toll opportunity could be. But now, again, in recent quarters, nothing really has actually moved in that front due to different external reasons. So now, even we are also not really too much talking about the BOT toll opportunity. So, is there really some opportunity here? Are we looking at some projects coming materializing in fourth quarter, or would our business model be more driven by the TOT side of the business and the existing order backlog?
You are right that the low-hanging fruit of BOT is definitely behind us. As more challenging, more complex BOT projects come up, we definitely are going to be more selective in looking at them. But the asset monetization side looks promising, and we certainly will be more focused on that. One more thing which comes to my mind, which I think I should make this point, is we are looking at an asset base of INR 94,000 crore with a concession life of, average life of around 20 years. So, this is a company now which has a formidable 20 years future business visibility. Quarter- after- quarter, you are going to see the growth hitting the numbers. The business visibility, unlike an EPC or a HAM player, is not the case in point as far as IRB is concerned.
It is on a very solid bedrock of growth. New projects certainly will add more momentum to it, but in absence of those as well, you will continue to see a formidable growth unlocking for the stakeholders.
Sure. Just last question, if I can. So, we saw other players eventually moving to the non-road business, and in hindsight, it looks to be a good thing that we did not move because they have actually gone through tough times in those businesses with low margin or projects not being able to complete or giving out to third-party subcontractors and stuff. So now, do we have any change in the thought process there, or we continue to maintain the road and highway side of the projects?
Since listing in 2008, we have always stayed away from all these glamorous ideas and always pursued the most non-glamorous, do more of the same kind of a concept all along. I think that same idea has kept us going stronger by the day. Going forward also, we do not have any extravaganza ideas of venturing into something unrelated and test the waters, because we see we have a good portfolio on hand, and we will be picky on the further project add that we do along the time. We are confident that with the capital at hand, we can scale to a INR 140,000 crore kind of an opportunity size, what Anil mentioned in his opening remarks. We are in absolutely no hurry.
We want to pick the right project, which will give good yields and good returns, and will add to the portfolio value, and that will be the endeavor going forward.
Any projects in the Private InvIT which can be looked to be transferred to the Public InvIT, any in maybe early next year?
Look, we had originally nine projects which formed part of the Private InvIT. As you have seen, five of those have now been transferred to the Public InvIT. We still have four left from the original set of projects as far as Private InvIT is concerned. Also, we have two HAM projects in IRB's balance sheet as well, which are nearing completion. Maybe in another six months' time, those also should get over. Once the eligibility criteria is hit, those HAM projects also will be available for transfer into the Public InvIT from IRB's balance sheet.
Got it. That is all from my side. Thank you and all the best.
Thank you.
Thank you. Next question comes from the line of Aditya Sahu with HDFC Securities Limited. Please go ahead.
Hi, sir. Thank you a lot for the opportunity. I just wanted to confirm a couple of data points. You know, we had just guided the O&M margins at 20%- odd. Do we still maintain that? And the net-debt-free status that we were looking by FY 2030?
Net debt status, yes, we stand by that. We have continued that articulation in our presentation as well, that that is a strong resolve that the company has, and we are definitely working on it. The reduced interest outgoing number demonstrates that resolve. You will see that interest number keeps coming down quarter after quarter.
Okay. On the O&M margin guidance front, we are still maintaining the 20% margin guidance?
Yes, very much so.
Understood, sir. We were also looking at the ROEs to by 8%-14% by FY 2030. Is that percentage number continues to be in place with [inaudible]?
Yes, very much so, because as the operating leverage improves, because I will just try to put forth a very simplistic form of explanation on this regard. If I plot a graph for a BOT or a TOT project where the CapEx is already done, the revenue tends to grow at a CAGR of 10%-12%, whereas the debt keeps coming down over a period of time, thus increasing the operating leverage. If that operating leverage is to increase, it is bound to increase the cash ROEs for the project and the entity as a whole. Yes, we remain completely focused on improving the cash ROEs from 8% to 14%+ by next four to five years. In next four-
Understood. Thanks a lot.
Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to the management for closing comments.
I think, thank you everyone for taking time out on this call. We seem to be already in the festive mode, so we have not many questions today. Let me again wish all of you a very happy Diwali and a prosperous New Year, and good markets. Let's meet again for the next quarterly earnings. Till then, if there are any interesting events, we will get back to you even at that point in time. With that, let me close this call. Thank you.
Thank you, sir. Ladies and gentlemen, this concludes our conference for today. We thank you for your participation and for using the Chorus Call Conferencing Services. You may please disconnect your lines now. Thank you and have a great evening ahead.