💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations decreased by 76.3% YoY from INR 7,039.55 Million in FY24 to INR 1,668.24 Million in FY25. Standalone revenue from operations fell by 100% from INR 225.00 Million to INR 0.00 in the same period.

Geographic Revenue Split

Not disclosed in available documents; however, operations are centered around Indian highway projects such as the Sadbhav Rudrapur Highway.

Profitability Margins

Consolidated Profit Before Tax (PBT) showed a loss of INR 138.34 Million in FY25 compared to a loss of INR 102.22 Million in FY24. For H1 FY26, the company reported a consolidated PBT of INR 70.571 Million, representing a 99.5% increase over the INR 35.373 Million reported in H1 FY25.

EBITDA Margin

Not explicitly disclosed, but H1 FY26 consolidated finance costs of INR 170.525 Million (up 10.8% YoY) and depreciation of INR 63.637 Million (up 10.1% YoY) against a PBT of INR 70.571 Million indicate that debt servicing remains a significant burden on core profitability.

Credit Rating & Borrowing

Current standalone borrowings stood at INR 4,395.94 Million as of September 30, 2025, an increase of 6.8% from INR 4,114.96 Million in March 2025. Finance costs for H1 FY26 were INR 170.525 Million.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company is an infrastructure developer; primary costs involve periodic maintenance and O&M services. Provision for periodic maintenance was INR 7.30 Million in H1 FY26.

Import Sources

Not applicable for infrastructure toll/annuity operations.

Capacity Expansion

The company is currently undergoing 'harmonious substitution' for the Sadbhav Rudrapur Highway Limited (SRHL) project as approved by NHAI in January 2024.

Raw Material Costs

Not applicable; however, finance costs represent a major operational outflow, totaling INR 170.525 Million for H1 FY26, which is approximately 8.3% of Q2 FY26 revenue.

Manufacturing Efficiency

Not applicable; efficiency is measured by toll collection and annuity receipts.

Logistics & Distribution

Not applicable for infrastructure projects.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on deleveraging and monetizing assets. A key strategy involves the 'harmonious substitution' of concessionaires for projects like SRHL to manage stressed assets and comply with NHAI conditions.

Products & Services

Toll collection services, user fee collection, annuity receipts, operation and maintenance (O&M) services, advisory services, and project management services for highway projects.

Brand Portfolio

Sadbhav Infrastructure Project Limited (SIPL).

Market Expansion

Focus remains on Indian highway infrastructure through NHAI-led projects.

Strategic Alliances

Partnership with NHAI for highway concessions and substitution agreements.

🌍 External Factors

Industry Trends

The industry is seeing a trend of 'harmonious substitution' where NHAI allows for the replacement of concessionaires in stressed projects to ensure project completion and debt recovery.

Competitive Landscape

Operates in the competitive Indian road construction and BOT (Build-Operate-Transfer) sector.

Competitive Moat

Moat is based on long-term concession agreements (toll/annuity) for essential highway infrastructure, though this is currently weakened by financial instability and audit qualifications.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and NHAI regulatory changes.

Consumer Behavior

Toll revenue is dependent on commercial and private vehicle traffic volumes on specific project stretches.

Geopolitical Risks

Not disclosed; primarily domestic Indian operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI concession agreements and the Companies Act 2013. The company is currently managing compliance for a substitution process initiated by NHAI in January 2024.

Taxation Policy Impact

Consolidated tax expense was INR 20.95 Million in FY25 compared to INR 240.34 Million in FY24.

Legal Contingencies

The company has disclosed pending litigations; however, the primary financial risk is the audit qualification regarding the uncertainty of realizing the carrying value of investments and loans to subsidiaries as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Audit qualification on the carrying value of investments and loans (Notes 43, 44, 45) suggests a potential for significant future write-downs if assets are not realized.

Geographic Concentration Risk

Concentrated in India, specifically in regions where projects like the Rudrapur Highway are located.

Third Party Dependencies

High dependency on NHAI for regulatory approvals and project substitutions.

Technology Obsolescence Risk

Low risk for physical road infrastructure, but internal financial control weaknesses were noted by auditors.

Credit & Counterparty Risk

Significant exposure to subsidiaries; auditors were unable to comment on the appropriateness of the carrying value of loans and advances to these entities.