IRB - IRB Infra.Devl.

📊 NSE: IRB 🏢 Construction 📅 Last Updated: 12/14/2025 8:26

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income for FY25 was INR 8,031.55 Cr, a 2% decrease from INR 8,201.76 Cr in FY24. Toll revenue grew 4% to INR 2,483.88 Cr, while contract revenue declined 8% to INR 4,560.68 Cr. In Q1FY26, BOT/TOT revenue grew 5% YoY to INR 646.0 Cr, and the new InvITs & Related Assets segment contributed INR 233.1 Cr, up from INR 80.0 Cr in Q1FY25.

Geographic Revenue Split

100% of revenue is generated in India, with key projects located in Maharashtra (Sindhudurg Airport, Mumbai-Pune Expressway), Gujarat (Ahmedabad-Vadodara), Madhya Pradesh, and Uttar Pradesh (NH-75/NH-44 corridor).

Profitability Margins

Net profit margin (after exceptional items) surged to 85% in FY25 from 8% in FY24 due to a INR 5,804.1 Cr exceptional gain. Excluding exceptional items, net profit margin was 9% in FY25 vs 8% in FY24. Operating profit margin improved to 47% in FY25 from 45% in FY24.

EBITDA Margin

Consolidated EBITDA margin stood at 50% for FY25, consistent with FY24. Segment-wise EBITDA margins in Q1FY26 were 88% for BOT/TOT, 91% for InvITs & Related Assets, and 18% for Construction (down from an adjusted 26% in Q1FY25).

Capital Expenditure

Proceeds from the USD 540 million (INR 4,502 Cr) Senior Secured Notes issuance were utilized for capital expenditure and refinancing existing loans. The company maintains a comprehensive equipment pool to support integrated project execution.

Credit Rating & Borrowing

IRB is rated Ba2 by Moody's and BB+ by Fitch for its USD notes. Domestic ratings are supported by a healthy financial risk profile with a TOL/TNW ratio below 1.0x. USD notes carry a coupon of 7.11% with final maturity in FY 2031-32.

⚙️ Operational Drivers

Raw Materials

Bitumen, steel, cement, and aggregates are the primary raw materials for road construction, though specific cost percentages for each are not disclosed.

Import Sources

Sourced primarily from domestic suppliers within India to support projects across various states including Maharashtra, Gujarat, and Uttar Pradesh.

Key Suppliers

Not specifically named in the documents, but the company maintains healthy relationships with leading banks and financial institutions for project financing.

Capacity Expansion

Current order book stands at INR 30,500 Cr as of March 31, 2025. The construction EPC order book of INR 2,400 Cr is planned for execution over the next two to three years.

Raw Material Costs

Total expenditure for FY25 was INR 6,837.18 Cr, down 1.4% from INR 6,935.47 Cr in FY24. Procurement is managed through an integrated execution model to optimize costs.

Manufacturing Efficiency

Efficiency is driven by a professionally managed team and a comprehensive equipment pool, enabling the completion of all BOT project phases within timelines.

Logistics & Distribution

Toll revenue growth of 20% (aggregate INR 7,400 Cr) reflects traffic growth on prime economic corridors, serving as a macro-economic indicator for the regions of operation.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth is driven by the 'InvIT and Related Assets' segment, capital recycling through public and private InvITs, and bidding for new BOT and TOT projects. The company recently acquired 80.4% of MBEL for INR 1,715 Cr through its Private InvIT.

Products & Services

BOT (Build-Operate-Transfer) road projects, TOT (Toll-Operate-Transfer) road projects, HAM (Hybrid Annuity Model) projects, Toll O&M services, and Project Management for InvITs.

Brand Portfolio

IRB Infrastructure Developers Ltd., IRB InvIT Fund (Public InvIT), IRB Infrastructure Trust (Private InvIT).

New Products/Services

The new 'InvIT and Related Assets' segment reported under Ind AS 108 is expected to provide regular inflows and management fees (INR 10 Cr earned in FY25).

Market Expansion

Focus remains on the domestic roads and highways sector, targeting prime economic corridors in India with a robust pipeline of BOT and TOT projects.

Market Share & Ranking

Market leader with the largest domestic portfolio in the roads and highways sector in India.

Strategic Alliances

Strategic partnership with GIC for the Private InvIT and acting as the Sponsor and Project Manager for the IRB InvIT Fund.

🌍 External Factors

Industry Trends

The industry is shifting toward capital recycling through InvITs and increased private participation in TOT/BOT models. Aggregate toll revenue for IRB and its InvITs grew 20% YoY to INR 7,400 Cr.

Competitive Landscape

High entry barriers in BOT/TOT segments limit competition to serious players with significant financial and execution capabilities.

Competitive Moat

Moat is built on a proven track record of timely BOT completion, financial strength to meet high entry barriers for TOT projects, and the largest domestic road portfolio. These are sustainable due to the capital-intensive nature of the sector.

Macro Economic Sensitivity

Toll revenue is highly sensitive to regional economic growth and traffic trends, which are currently showing robust growth in line with macro-economic indicators.

Consumer Behavior

Increased traffic on prime highway corridors reflects growing commercial and passenger vehicle movement in India's economic hubs.

Geopolitical Risks

Primarily domestic focus limits direct geopolitical exposure, though global interest rate trends affect the cost of international debt like the USD notes.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with NHAI guidelines, Companies Act 2013, and SEBI Listing Regulations. Secretarial audit for FY25 confirmed adherence to applicable statutory provisions.

Environmental Compliance

Committed to Science-Based Targets initiative (SBTi) for net zero by 2050. Target to reduce Scope 1 and 2 emission intensity by 30% and fossil fuel use by 50% by 2040.