GR Infra reported a steady quarter in Q1FY26 with revenue at INR 18bn (-4% YoY), EBITDA at INR 2.3bn (-6% YoY) and margin at 12.7% (-35bps YoY). Adj. PAT stood at INR 2.1bn (+7% YoY). It bagged new orders worth ~INR 20bn in Q1, taking its orderbook (OB) to INR 194bn (+30% YoY) – 3x TTM revenue. Including L1, OB stands at INR 237bn. It has guided for 10- 15% revenue growth for FY26 and 15-20% for FY27. We believe growing its OB by at least 25% YoY may be the key for the company to meet its guidance (assuming execution remains the same as seen historically). Order pipeline remains strong across sectors. Note that NHAI has targeted bidding of INR 3.4trn in FY26 (we estimate at least INR 2trn to be bid out) - giving visibility on meeting the OI expectations.
OutlookThe stock is currently trading at 6x FY27E (considering 1.5x exit multiple on its HAM portfolio). Maintain BUY with SoTP-based revised TP of INR 1,430.
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