💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew by 230.8% YoY, rising from INR 172.00 Lakhs in FY 2023-24 to INR 569.02 Lakhs in FY 2024-25. However, consolidated revenue for H1 FY26 was reported at Nil compared to INR 233.02 Lakhs in H1 FY25, indicating a significant temporary cessation of operational billings at the group level.

Geographic Revenue Split

Not disclosed in available documents; however, operations are primarily centered in India with the registered office in Hyderabad, Telangana.

Profitability Margins

Standalone net profit margin improved significantly from -2.62% in FY 2023-24 to 1.19% in FY 2024-25. Operating profit margin remained robust but slightly declined from 60.83% to 59.54% during the same period.

EBITDA Margin

Operating profit margin was 59.54% for FY 2024-25, a slight decrease of 2.14% from the previous year's 60.83%, reflecting stable core profitability despite shifting revenue scales.

Capital Expenditure

The company recorded a minor purchase/development of fixed assets amounting to INR 0.42 Lakhs in H1 FY26. Historical depreciation for FY 2024-25 was INR 6.69 Lakhs.

Credit Rating & Borrowing

Standalone non-current borrowings stood at INR 30,353.75 Lakhs as of September 30, 2025. Finance costs for H1 FY26 were INR 754.65 Lakhs, which includes finance costs on preference shares.

⚙️ Operational Drivers

Raw Materials

As an infrastructure management and O&M company, specific raw materials like steel or cement are managed via EPC contractors; direct costs are primarily 'Operating & Maintenance Expenses' which totaled INR 161.61 Lakhs in H1 FY26.

Import Sources

Not disclosed in available documents; procurement is likely domestic given the nature of highway maintenance in India.

Key Suppliers

Not disclosed in available documents; however, the company has significant material related party transactions with Gayatri Jhansi Roadways Limited.

Capacity Expansion

The company operates as an investment vehicle for highway projects; current capacity is defined by its portfolio of BOT (Build-Operate-Transfer) assets. Expansion is driven by new work orders, such as the approved INR 150 Crore contract for EPC/O&M services.

Raw Material Costs

Operating and Maintenance expenses accounted for INR 535.98 Lakhs in FY 2024-25. For H1 FY26, O&M expenses were INR 161.61 Lakhs, representing a significant portion of operational outflow.

Manufacturing Efficiency

Not applicable as the company is in the infrastructure service sector; efficiency is measured by the Debtor Turnover Ratio which worsened from 8.59 days to 19.24 days in FY 2024-25.

Logistics & Distribution

Not disclosed in available documents; distribution costs are not a primary factor for highway asset management.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through material related party transactions, specifically a newly approved mandate with Gayatri Jhansi Roadways Limited for work orders and EPC/O&M services not exceeding INR 150 Crores. The strategy involves leveraging existing infrastructure portfolios to secure steady service-linked revenue.

Products & Services

The company provides Engineering, Procurement, and Construction (EPC) services, and Operation and Maintenance (O&M) services for highway projects.

Brand Portfolio

Gayatri Highways Limited (GAYAHWS).

New Products/Services

Expansion into material EPC work orders for existing road assets, with a specific focus on the INR 150 Crore contract with Gayatri Jhansi Roadways.

Market Expansion

Targeting increased service penetration within its existing portfolio of road assets in India.

Strategic Alliances

The company operates through several Joint Ventures and Jointly Controlled Entities; share of losses from these entities was INR 3,179.28 Lakhs in H1 FY26.

🌍 External Factors

Industry Trends

The industry is shifting toward more robust O&M requirements and integrated EPC models. GAYAHWS is positioning itself as a specialized service provider for its subsidiary road assets to capture these margins.

Competitive Landscape

Competes with other infrastructure developers and O&M specialists in the Indian highway sector.

Competitive Moat

Moat is based on long-term BOT contracts and established relationships with parent/group entities for O&M services. Sustainability depends on maintaining technical expertise and managing high leverage.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate fluctuations due to high debt levels (INR 30,353.75 Lakhs).

Consumer Behavior

Traffic volume on managed highways directly affects the financial health of the underlying SPVs (Special Purpose Vehicles) which GAYAHWS manages.

Geopolitical Risks

Low direct impact, but indirect impact through national infrastructure policy shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and NHAI (National Highways Authority of India) standards for road maintenance and safety.

Taxation Policy Impact

Current tax expense for H1 FY26 was INR 30.20 Lakhs compared to INR 3.88 Lakhs in H1 FY25.

Legal Contingencies

The Secretarial Audit Report for FY 2024-25 provided an unmodified opinion, indicating compliance with statutory provisions, though specific values for pending litigation were not detailed in the provided extracts.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the high Debt-Equity Ratio of -2.25, which indicates negative equity and high financial risk. A 5% increase in finance costs could wipe out the current slim standalone net profit (INR 29.53 Lakhs).

Geographic Concentration Risk

100% of operations and assets are located within India.

Third Party Dependencies

High dependency on the performance of Joint Ventures; share of losses from JVs reached INR 3,179.28 Lakhs in H1 FY26.

Technology Obsolescence Risk

Low risk in physical road assets, but digital transformation in tolling (FASTag) and asset monitoring is required to maintain efficiency.

Credit & Counterparty Risk

Trade receivables increased in FY 2024-25, leading to a higher Debtor Turnover of 19.24 days, indicating potential slowing in payment cycles from counterparties.