Buy IRB Infrastructure; target of Rs 52: Motilal Oswal

Motilal Oswal's research report on IRB Infrastructure

Revenue grew 10% YoY to INR17.5b in 2QFY26 (in line). Revenue included a gain from InvITs & related assets as per fair value measurement and dividend/interest income from InvITs & related assets. EBITDA margins came in at 52.8% (vs. our estimate of 48.5%) in 2QFY26 (+450bp YoY and +740bp QoQ). EBITDA grew ~21% YoY to INR9.2b (8% above our estimate). APAT rose 41% to INR1.4b (in line).

Outlook

We retain our estimates for FY26/FY27 and roll forward our valuation to FY28. Backed by attractive valuations, a strong order book, and a robust tender pipeline driven by BOT projects, we expect revenue to register a CAGR of 20% over FY25-28E. We upgrade our rating to BUY with an SoTP-based TP of INR52