Buy HG Infra Engineering; target of Rs 1900: Emkay Global Financial

Emkay Global Financial's research report on HG Infra Engineering

HGIEL posted 14%/1% YoY revenue/EBITDA growth in Q1FY26 to Rs17.1/2.5bn, respectively, while RPAT stood at Rs1.3bn. Order book at quarter-end was Rs147bn. The management gave guidance of ~15-17% YoY sales growth in FY26, with 15-16% EBITDAM. It has also guided to FY26 order inflow of Rs110bn, with ~75% expected from roads and railways, and the remaining from other sectors. HGIEL plans monetizing 5 HAM projects nearing completion in FY26.

Outlook

We keep our TP unchanged at Rs1,900; retain BUY, given the incremental wins, steady execution progress, and the potential HAM monetization being key near-term triggers.