Shares of HG Infra Engineering Ltd fell over 3% to Rs 880 on Thursday, November 13, following a weak second-quarter performance. The stock declined by Rs 27.35 from its previous close of Rs 907.35, as investors reacted to a sharp drop in quarterly profit and margin compression.
In Q2 FY26, the company reported a 35.4% year-on-year decline in net profit to Rs 52.1 crore, compared to Rs 80.7 crore in the same quarter last year. Revenue from operations remained largely stable at Rs 904.5 crore versus Rs 902.4 crore in Q2 FY25, indicating muted topline growth.
However, EBITDA dropped 5.9% YoY to Rs 206.2 crore from Rs 219.1 crore, while EBITDA margins contracted to 22.8% from 24.3% a year ago, reflecting higher project costs and inflationary pressures.
On the project front, HG Infra recently announced that its wholly-owned subsidiary, HG Varanasi-Kolkata PKG-13 Pvt Ltd, has received the appointed date from NHAI for a major six-lane greenfield Varanasi–Ranchi–Kolkata Highway project in Jharkhand. The Rs 925.11 crore project, awarded under the hybrid annuity model (HAM), spans 28.7 km and carries a completion period of 730 days.
The project is part of the Bharatmala Pariyojana initiative and is expected to enhance connectivity across Jharkhand and West Bengal, boosting trade and regional development.
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