GR Infra Projects shares drop 5% after Q3 revenue declines 21% to Rs 1,695 crore

GR Infra Projects shares drop over 4% after a day of Union Budget annoucnement

GR Infra Projects shares saw a sharp drop of about 4.5 percent in early trade on February 3, following a mixed quarterly performance report on the same day as the Union Budget announcement.

The stock was trading at Rs 1,218, as seen at 10:20 am.

The drop in share price comes despite a 7.8 percent year-on-year (YoY) increase in net profit for the third quarter, which ended on December 31, 2024. The company reported a net profit of Rs 261.7 crore, up from Rs 242.7 crore a year ago. However, the company’s revenue from operations fell 20.6 percent, dropping to Rs 1,694.5 crore from Rs 2,134 crore in the same period last year. Additionally, the EBITDA plummeted by 27.1 percent to Rs 369.8 crore, with EBITDA margin declining from 23.8 percent to 21.8 percent.

While the company’s profitability showed some growth, the revenue and operational performance were weaker than expected, which likely contributed to the stock's decline. The fall in the share price could also reflect broader market reactions to the company's slower growth momentum in the face of declining revenue.

Read about Stock Market updates LIVE

While presenting the Union Budget 2025-2026, Finance Minister Nirmala Sitharaman spoke about the introduction of a new asset monetisation plan for 2025-30, with a goal to generate Rs 10 lakh crore for new infrastructure projects. She said that National Bank for Financing Infrastructure and Development (NaBFID) will set up partial credit guarantee scheme for corporate bonds for infrastructure. This could be a factor to keep an eye on for the GR Infra Projects' future prospects.

Earlier in the week, GR Infra Projects emerged as the lowest (L-1) bidder for a Rs 262.28-crore railway infrastructure project under Western Railway, signaling potential growth.