H.G. Infra Engineering Ltd. reported a sharp decline in financial performance for the first quarter of fiscal year 2027, according to a slide deck reviewed by Finances Review.
The company’s revenue fell by 18% year-over-year to ₹1,240 crore ($149 million), while net profit plummeted 42% to ₹89 crore ($10.7 million). Operating margins contracted to 6.2%, down from 9.1% in the same period last year, reflecting higher input costs and project execution delays. The slide deck attributed the decline to supply chain disruptions and elevated material prices, particularly steel and cement, which weighed on margins despite a 5% increase in order bookings to ₹2,850 crore.
Management outlined a recovery strategy focused on cost optimization, renegotiating supplier contracts, and accelerating project completions. The company expects margins to stabilize in the second half of FY27 as these measures take effect. H.G. Infra also highlighted a ₹500 crore ($60 million) rights issue planned for Q3 FY27 to strengthen its balance sheet and fund growth initiatives.
Analysts noted that while the near-term outlook remains challenging, the company’s diversified project portfolio across roads, highways, and urban infrastructure could support a gradual rebound. The slide deck did not provide revised guidance for the full fiscal year, but maintained a cautious stance on macroeconomic headwinds, including inflation and liquidity constraints.
H.G. Infra Engineering’s shares, listed on the National Stock Exchange and Bombay Stock Exchange, were trading 3.2% lower at ₹245 apiece in early trading on Friday, extending losses from the previous session.
