Sharp fall in execution dents earnings; order inflow and growth to resume from FY26E onwards

Company

11 Nov 2024 | 5 Min Read

G R Infraprojects faced a slowdown in project execution during 2QFY25.

Revenue declined 28% YoY to ~INR11.3b during 2QFY25.

EBITDA margin stood at 10.4% (-190bp YoY) vs. estimate of 13.2%.

APAT declined by 6% YoY to ~INR1.2b (19% below estimates).

Order book stands at ~INR146 b (excl. L1), with road projects accounting for 74%.

Management expects double digit revenue growth in FY26.

Reiterate BUY with a revised TP of INR 1,830, based on an SoTP valuation.