GRINFRA - G R Infraproject

📊 NSE: GRINFRA 🏢 Construction 📅 Last Updated: 12/13/2025 22:13

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations was INR 6,515.57 Cr, a decrease of 16.34% YoY. Consolidated revenue was INR 7,394.70 Cr, down 17.66% YoY. The decline is attributed to a lower execution base following two fiscals of degrowth.

Geographic Revenue Split

The order book is geographically diversified across 17 states in India. Specific percentage contribution per region is not disclosed in available documents.

Profitability Margins

Standalone PAT margin stood at 12.07% for FY25, up from 9.70% in FY24. Consolidated PAT margin was 13.73% in FY25. Profitability has moderated from historical averages of 18% to 13-15% due to increased competitive intensity.

EBITDA Margin

Standalone EBITDA margin (net of other income) was 13.88% in FY25, a decrease of 4.78% YoY from 14.58%. Consolidated EBITDA margin was 22.13%, down 6.79% YoY from 23.63%.

Capital Expenditure

Historical fixed assets turnover ratio was 5.51 in FY25. The company maintains a strong fleet of owned equipment and vehicles to support operating efficiency, though specific planned INR Cr for future capex is not disclosed.

Credit Rating & Borrowing

The company maintains a stable outlook. Interest coverage ratio was healthy at over 11 times during fiscal 2025. Standalone finance costs decreased 17.45% to INR 85.69 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include bitumen, steel, and cement, which are standard for road construction. Specific percentage of total cost for each is not disclosed.

Capacity Expansion

Current order book stands at INR 23,706 Cr as of June 30, 2025, providing an order-to-revenue ratio of 3.6x. The company is expanding into Transmission & Distribution (T&D), tunnels, ropeways, and multi-modal logistics parks (MMLP).

Raw Material Costs

Cost of materials consumed was INR 302.52 Cr for FY25. Procurement is supported by backward integration into manufacturing and processing capacities of various inputs to maintain 13-15% margins.

Manufacturing Efficiency

Operating efficiency is supported by backward integration. Fixed asset turnover ratio was 5.51 in FY25, slightly down from 5.74 in FY24.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through the execution of large orders awarded in H2 FY25 and diversification into higher-margin segments like T&D, tunnels, and ropeways. The company is targeting 15% growth in FY27 based on current order bidding momentum.

Products & Services

Hybrid Annuity Model (HAM) road projects, EPC services for highways, Transmission & Distribution (T&D) lines, tunnels, ropeways, and Multi-Modal Logistics Parks (MMLP).

Brand Portfolio

G R Infraprojects Limited (GRIL).

New Products/Services

Entry into Transmission & Distribution (T&D), tunnels, ropeways, and MMLP segments, which are expected to provide marginally higher margins (targeting 15%) compared to standard road projects.

Market Expansion

Expansion into 17 states and diversification into non-road infrastructure sectors to reduce sector-specific concentration.

Strategic Alliances

Transfer of operational HAM projects to Indus Infra Trust (InvIT) to recycle capital. Profit of INR 62.54 Cr was earned on the transfer of two subsidiary companies in FY25.

🌍 External Factors

Industry Trends

The industry is seeing increased competition from smaller players. GRIL is positioning itself for the future by diversifying into T&D and Ropeways to maintain margins above 13%.

Competitive Landscape

Key competitors include smaller players entering the road sector due to relaxed bidding norms, leading to margin compression.

Competitive Moat

Moat is built on backward integration and a large owned equipment fleet, which provides cost leadership. This is sustainable but being tested by aggressive bidding from new entrants.

Macro Economic Sensitivity

Highly sensitive to Government of India infrastructure spending and NHAI awarding momentum.

Consumer Behavior

N/A as the primary clients are government agencies.

Geopolitical Risks

Primarily domestic operations; risks are limited to changes in Indian government regulations and tax laws.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI bidding guidelines and Ministry of Road Transport regulations. Changes in government regulations or tax laws are cited as key risk factors.

Environmental Compliance

CSR expense for FY25 was INR 1.93 Cr.

Taxation Policy Impact

Standalone tax expense was INR 291.32 Cr in FY25, representing an effective tax rate of approximately 26.5% on PBT.

Legal Contingencies

Three employees were arrested in June 2022 on charges of bribery involving INR 4 lakh by the CBI. Raids were conducted at the promoter's residence, but no top management or family members were implicated.

⚠️ Risk Analysis

Key Uncertainties

Execution risk of large projects could impact revenue by 5-10%. Competitive intensity in the road sector remains a primary uncertainty for margin sustainability.