Synopsis:
Infra sector shows strong growth prospects with a robust order book, diversified projects, and government-backed spending. Despite a slight revenue dip, profits surged on better efficiency. A healthy tender pipeline and balanced project mix ensure sustained expansion and promising returns in the coming years.
India’s civil construction sector is poised for significant expansion in FY25-26, with the market size projected to hit Rs 25.31 trillion. Driven by a massive government infrastructure allocation of Rs 11.21 lakh crore, the industry anticipates a robust growth of 8-10%. This growth is supported by major projects in transportation and urban development, with stable operating margins expected.
With a market capitalization of Rs 11,986.61 crore, the shares of G R Infraprojects Ltd were trading at Rs 1,240 per share, decreasing around 0.69 percent as compared to the previous closing price of Rs 1,247.60 apiece.
Brokerage recommendation
Axis Securities has issued a ‘Buy’ call on this infrastructure stock, setting a target price of Rs 1,540 per share. This suggests a 24% upside from Wednesday’s price of Rs 1,240. The recommendation reflects confidence in the stock’s growth potential and positive future performance.
The brokerage highlights the company’s strong and diversified order book of ₹23,706 crore, covering roads, railways, transmission, telecom, and tunnels, ensuring revenue visibility for 24–36 months.
For FY26, it expects ₹22,000 crore in new orders, out of which Rs 14,000-15,000 Cr will be from highways, railways, and metros, and significant contributions from power, tunnels, and telecom projects.
Additionally, the company boasts a robust FY26 tender pipeline of ₹2 lakh crore, led by NHAI projects, with significant opportunities in hydro, power transmission, railways, and metro. Its diversification into railways, ropeways, optical fibre, MMLPs, and power transmission reduces reliance on road projects, ensuring balanced growth across multiple infrastructure segments.
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Further brokerage added, in Q1FY26, revenue dipped as projects were in early stages. With most projects now receiving approvals, an executable order book of ₹15,000 crore is set for completion in two years. This strong pipeline is expected to drive a healthy 13% revenue CAGR between FY25 and FY27.
In Q1FY26, the company’s revenue declined 2% to ₹1,988 crore from ₹2,030 crore a year ago. However, net profit surged 56% to ₹244 crore from ₹156 crore, reflecting improved operational efficiency and stronger margins despite the slight revenue dip, showcasing resilient financial performance.
As of June 30, 2025, the company reported a strong order book of ₹1,94,104 million, with roads dominating the project mix at 69%, followed by transmission, tunnel works, and metro projects. This indicates a heavy focus on road infrastructure, supported by diversified segments.
Client distribution is led by NHAI at 58%, while NHPC, MSRDC, and others contribute significantly. State-wise, major contributions come from Madhya Pradesh (24%) and Maharashtra (20%), showcasing regional growth opportunities. With additional road projects worth ₹42,960 million, the order book is expected to rise to ₹2,37,064 million.
The company boasts a reputed client base, including NHAI, MoRTH, MSRDC, NHIDCL, UPEIDA, and NHPC, alongside key organizations like BSNL, Rail Vikas Nigam, and Bangalore Metro. This strong portfolio highlights its trusted partnerships with major government bodies, reinforcing credibility and ensuring sustained growth in India’s infrastructure development sector.
G R Infraprojects Limited operates in three categories: construction, operation and maintenance, and manufacturing and fabrication. The Company’s principal business of civil construction includes EPC, BOT, and HAM projects in the road sector and EPC projects in railway, metro, airport runways, and optical fibre cable (OFC) projects.
Written by Abhishek Singh
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