Highway Infrastructure Ltd. is positioning itself to capitalize on India’s infrastructure boom, announcing plans to raise ₹650 million primarily for working capital requirements as the company expands its tollway operations across the nation.
Riding the Infrastructure Wave
India’s infrastructure sector is experiencing unprecedented growth, fueled by ambitious government initiatives including Bharatmala, the National Infrastructure Pipeline (NIP), and PM Gati Shakti. The sector’s momentum is further accelerated by technological advancements like FASTag implementation and GPS-based toll systems, creating a favorable environment for Highway Infrastructure’s core business.
“The outlook for toll traffic remains highly promising,” industry analysts note, citing consistent upward trends in both transaction volumes and revenue collections across national highways.
Diversified Revenue Model Delivers Results
Highway Infrastructure has built a robust business model spanning three key verticals. Tollway operations form the backbone, contributing 77.14% of operational revenue in FY25, while EPC infrastructure execution accounts for 21.28%, and real estate development rounds out the portfolio at 1.58%.
The company’s consolidated order book stands at an impressive ₹6,663.07 million as of May 2025, with ₹6,067.77 million attributed to EPC infrastructure contracts and ₹595.30 million from tollway collection agreements.
Strong Financial Performance
Highway Infrastructure has demonstrated consistent financial strength with a revenue CAGR of 4.36% and EBITDA CAGR of 6.36% over FY23-FY25. Despite revenue moderation in FY25 due to project execution cycles, profitability metrics remain robust.
Key financial highlights include EBITDA margin stability at 6.32% and PAT margin improvement to 4.44%. Diluted EPS strengthened significantly from ₹2.03 in FY23 to ₹3.40 in FY25, reflecting consistent earnings growth trajectory.
Impressive Return Ratios
The company’s capital efficiency stands out with ROCE at 16.56% and ROE at 19.03% in FY25, demonstrating effective capital deployment strategies. Additionally, Highway Infrastructure has strengthened its balance sheet, reducing debt-equity ratio from 0.85 in FY23 to 0.61 in FY25.
Expanding Operational Footprint
Operational expansion has been remarkable, with tollway operations growing from 7 to 15 locations and geographic presence expanding from 5 to 7 states during FY23-FY25.
The proposed ₹650 million fundraise for working capital, alongside general corporate purposes, positions Highway Infrastructure to further leverage its diversified infrastructure presence and capitalize on India’s infrastructure development momentum across transport, irrigation, and civil construction sectors.
