Synopsis: Shares of leading infrastructure and toll operator fell 5% despite Rs. 5,400 crore asset monetisation, a 7% interim dividend, and a 1:1 bonus issue as investors reacted to a sharp YoY earnings decline.
The shares of this infrastructure development company with strong presence in roads, highways, construction, airport development, and real estate came into focus after the stock fell 5% following its Q3 results and announcements of bonus shares and dividends.
With a market capitalisation of Rs. 25,587 cr, the shares of IRB Infrastructure Developers Ltd were trading at Rs. 42.37 per share, declining 5% in today’s market session, making a low of Rs. 41.90, down from its previous close of Rs. 43.97 per share.
Q3 Results
- YoY performance: On a year-on-year basis, revenue declined from Rs. 2,025 crore to Rs. 1,871 crore, a drop of 8% YoY. EBITDA increased from Rs. 984 crore to Rs. 1,022 crore, registering a 4% growth, reflecting improved operating efficiency. Net profit fell sharply from Rs. 6,026 crore to Rs. 211 crore, a steep 96.5% decline, while EPS dropped from Rs. 9.98 to Rs. 0.35, also down 96.5%.
- QoQ performance: On a quarter-on-quarter basis, the company reported healthy sequential growth. Sales rose from Rs. 1,751 crore to Rs. 1,871 crore, up 7%. EBITDA increased from Rs. 925 crore to Rs. 1,022 crore, marking a strong 10.5% growth. Net profit surged from Rs. 141 crore to Rs. 211 crore, reflecting a robust 50% increase, while EPS improved from Rs. 0.23 to Rs. 0.35, up by 52%, indicating improved profitability in the quarter.
Management Commentary
Chairman and Managing Director Virendra D. Mhaiskar stated that during the quarter, the company successfully monetised three BOT assets by shifting them from a Private InvIT to a Public InvIT, thereby unlocking Rs. 4,900 crore in equity value.
In addition, the transfer of the VM7 HAM asset to the Public InvIT released Rs. 513 crore of equity and helped lower debt by over Rs. 700 crore. He further noted that, in line with the company’s capital recycling strategy, the funds unlocked will be utilised to meet equity commitments for two recently acquired TOT assets with a combined value of approximately Rs. 14,000 crore.
Dividend & Bonus Issue
The company has declared its third interim dividend of 7%, amounting to Rs. 0.07 per equity share of face value Rs. 1 for FY26, with February 19, 2026 fixed as the record date. The dividend will be paid to eligible shareholders on or before March 14, 2026.
Additionally, the board has recommended the issuance of bonus shares in a 1:1 ratio, subject to shareholder approval via postal ballot and requisite regulatory clearances. The record date for the bonus issue will be announced separately.
IRB Infrastructure Developers Ltd is one of India’s leading infrastructure developers, primarily focused on roads and highways under BOT, HAM, and TOT models. The company is also present in road maintenance, construction, airport development, and real estate, with a strong portfolio of operational and under-development assets across India.
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