BRNL - Bharat Road

📊 NSE: BRNL 🏢 Construction 📅 Last Updated: 12/13/2025 19:27

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment of road development and related services. Consolidated gross revenue grew 22.7% YoY, reaching INR 480.01 Cr in FY25 compared to INR 391.10 Cr in FY24. Standalone total income decreased slightly by 0.25% to INR 13.82 Cr.

Geographic Revenue Split

Revenue is derived from road assets across India, including Kerala (GIPL recorded toll revenue of INR 186.53 Cr, contributing ~39% of consolidated revenue), Uttar Pradesh (GAEPL), Odisha (SJEPL), and Haryana (Kurukshetra Expressway).

Profitability Margins

Consolidated PAT margin turned positive at 28.3% in FY25 (INR 136.13 Cr profit) from a net loss of INR 113.23 Cr in FY24. However, standalone net loss widened significantly to INR 308.15 Cr in FY25 from INR 22.07 Cr in FY24 due to impairment and financial costs.

EBITDA Margin

Consolidated operating profit before working capital changes for H1 FY26 was a negative INR 18.87 Cr on revenue of INR 130.77 Cr, indicating core operational challenges in the current half-year period.

Capital Expenditure

Not disclosed in available documents, though the company mentions adopting a prudent project delivery mechanism to expedite execution of existing assets under construction.

Credit Rating & Borrowing

Total consolidated borrowings stood at INR 263.58 Cr as of September 30, 2025. Auditors highlighted a qualification regarding non-recognition of interest on INR 193.58 Cr (Holding) and INR 97.66 Cr (Subsidiary), impacting reported borrowing costs.

⚙️ Operational Drivers

Capacity Expansion

Focus is on completing existing assets under construction and managing operational high-density corridors like GAEPL and SJEPL. The group headcount was 208 as of March 31, 2025.

Manufacturing Efficiency

Not applicable as the company is a service-based infrastructure developer.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through selective bidding for new projects at attractive IRRs, proactive claim realization from terminated projects, and asset management of high-density corridors. The company also utilizes inorganic growth by acquiring existing projects at favorable valuations.

Products & Services

Road infrastructure development, toll collection services, BOT (Build-Operate-Transfer) projects, HAM (Hybrid Annuity Model) projects, and TOT (Toll-Operate-Transfer) models.

Brand Portfolio

Bharat Road Network Limited (BRNL), Guruvayoor Infrastructure Private Limited (GIPL), Ghaziabad–Aligarh Expressway Pvt Ltd (GAEPL), Shree Jagannath Expressway Pvt Ltd (SJEPL).

Market Expansion

Focus on regional connectivity and high-density corridors in India; ownership of marquee assets has been transferred to institutional investors to recycle capital.

Strategic Alliances

Transfer of asset ownership to marquee institutional investors for GAEPL and SJEPL projects to demonstrate bankability.

🌍 External Factors

Industry Trends

The industry is shifting toward HAM and TOT models to mitigate private sector risk; increased competition is noted as more players qualify for project bidding.

Competitive Landscape

The infrastructure sector is becoming more competitive with more players qualifying for BOT, HAM, and TOT projects, potentially squeezing bidding margins.

Competitive Moat

Moat is built on operational excellence in managing high-density corridors and a robust internal framework for claims management, which is critical for recovering value from stalled projects.

Macro Economic Sensitivity

Highly sensitive to GDP growth and economic conditions that drive commercial traffic volumes; traffic growth is a key business risk.

Consumer Behavior

Traffic volume trends are influenced by regional connectivity and economic activity; steady operational performance was noted in GIPL with toll revenue of INR 186.53 Cr.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI concession agreements and the Insolvency and Bankruptcy Code (IBC), the latter of which poses a risk by overriding contract-specific termination clauses.

Legal Contingencies

The company is actively pursuing claims for financial losses sustained from terminated concession agreements. A significant legal/accounting dispute exists regarding the non-recognition of interest on liabilities totaling INR 193.58 Cr for the holding company and INR 97.66 Cr for GIPL.