Q2 FY27 results analysis · November 05, 2026
IRB Infrastructure Q2 FY27 Results Analysis: PAT Surges 85%, EBITDA Margin Expands 279 bps
+84.8%PAT year on year, Rs. 260.31 Cr
Source: Quarterly results filing (BSE)
Quick summary
IRB Infrastructure Developers Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,897.08 Cr (+8.34% YoY) and PAT growth of +84.85% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,897.08 Cr (+8.34% YoY) |
| PAT (Q2) | Rs. 260.31 Cr (+84.85% YoY) |
| EBITDA margin | 55.59% (+279 bps YoY) |
| EPS (Q2) | Rs. 0.22 (+83.33% YoY) |
Quarter Snapshot
IRB delivered 84.85% PAT growth on 8.34% revenue growth, with EBITDA margin up ~279 bps YoY to 55.59% driven by the mix shift toward 90%+ margin toll/InvIT income and a 14% YoY fall in finance costs. Management's own targets (interest cost reduction, construction >Rs.3,000 Cr, 5-digit toll revenue) are tracking on plan, though no metric exceeded a stated guidance number. Watch items are construction margin compression to 13.69%, decelerating monthly toll growth, and no net-debt reduction yet on the derived consolidated basis.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Toll revenue ahead | "three consecutive months of ~24–26% YoY group toll growth" | Toll proxy Rs.1,076.46 Cr, +15.64% YoY; monthly +26/25/24% | Played out |
| Construction behind | "Construction revenue is the drag: the segment fell 20.6% YoY in Q1" | +0.25% YoY (Rs.817.56 Cr) — stabilised to flat, still no growth | Partially |
| Construction margins compressing/flat; bitumen the cost story | "construction margins likely compressing or, at best, flat" | 13.69% vs 16.77% YoY; flat vs 13.70% QoQ — YoY compression, no fresh QoQ slide | Played out |
| Bitumen pass-through as Q2 swing factor (per pre-call note, web-sourced) | "timing of claims recognition… is a Q2 swing factor" | Filing silent on claims recognition | Not observable |
| Toll margins supported | "consistent with Q1's 55.58% EBITDA margin" | 55.59% vs 52.80% yr-ago | Played out |
| Interest on the guided downward path | "Interest costs likely stayed on the guided downward path" | −14.03% YoY consolidated; −5.38% standalone | Played out |
| Order inflow behind | "TOT-20/21/22 bids had not opened by early November" | No new orders announced in the Jul 30–Nov 4 window (pre-call notes); filing silent — per pre-call notes | Played out |
| Profit quality (FV-gain-aided PAT) | "the same profit-quality lens applies to IRB's Q1 PAT" | Normalized PAT Rs.102.89 Cr vs reported Rs.260.31 Cr — quantified; underlying swing still positive | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 "5-digit gross revenue number" (toll), ~10% growth assumption | FY27 guidance given on the Q1 FY27 earnings call | Toll proxy Rs.1,076.46 Cr, +15.64% YoY; monthly gross toll Rs.797.70/807.40/772.50 Cr, +26/+25/+24% YoY | On Track |
| Construction revenue to "comfortably... cross the INR 3,000 crore mark" in FY27 | Q1 FY27 earnings call | H1 Rs.1,781.30 Cr; H2 needs Rs.1,218.70 Cr — below the H1 run-rate | On Track |
| Interest cost −Rs.150–200 Cr in FY27 | Q4 FY26 earnings call | H1 consolidated finance costs −Rs.87.26 Cr YoY (Rs.825.71 Cr vs Rs.912.96 Cr) | On Track |
| Profit 25% CAGR (open-ended) | IRB corporate presentation | Q2 PAT +84.85% YoY (FV-gain-aided); H1 +65.04% | On Track |
| O&M order book +Rs.4,000–5,000 Cr p.a. | Prior concall guidance | Rs.2,663 Cr PIA signed Sep 29, 2026 | On Track |
| Asset migration Rs.30,000–35,000 Cr EV over 2–3 yrs; Public InvIT AUM Rs.40,000 Cr | Q1 FY27 earnings call | Rs.4,605 Cr EV transferred Sep 30, 2026 | On Track |
| Net debt zero within 5 years | Q4 FY26 earnings call | Derived consolidated net debt Rs.18,239.13 Cr (Sep-26) vs Rs.18,097.14 Cr (Mar-26), different basis from the company's stated Rs.11,057.2 Cr group figure | Too Early |
| Revenue growth 9–9.5% (open-ended) | Prior concall guidance (pre-call notes) | Q2 revenue from ops +8.34% YoY; H1 +4.79% — marginally, on the quarter | Missed |
| "Robust YoY Toll Revenue growth of around 15%" (CMD, Q2 press release) | Press release, Nov 5, 2026 | Toll proxy +15.64% YoY | Confirmed |
| Q2 PAT growth "led by a strong growth in distribution from InvITs" | Press release, Nov 5, 2026 | InvIT dividend/interest income Rs.122.91 Cr vs Rs.24.93 Cr (+393% YoY) | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Gross toll revenue (Rs. Cr) | YoY % |
|---|---|---|
| July | 797.70 | ~26 |
| August | 807.40 | ~25 |
| September | 772.50 | ~24 |
Key Investment Insights
Key Positives
- PAT grew 84.85% YoY to Rs.260.31 Cr; EPS (bonus-adjusted) Rs.0.22 vs Rs.0.12 (+83.33%)
- P&L-derived EBITDA margin expanded ~279 bps YoY to 55.59% on EBITDA growth of ~14% YoY vs +8.34% revenue growth
- InvIT dividend/interest income rose to Rs.122.91 Cr from Rs.24.93 Cr (+393% YoY)
- Finance costs fell 14.03% YoY to Rs.387.69 Cr; H1 reduction of Rs.87.26 Cr tracks the guided Rs.150–200 Cr FY27 reduction
- Normalized PAT (stripping tax-shielded FV gains) swung to Rs.102.89 Cr from −Rs.9.55 Cr a year ago
- H1 CFO of Rs.1,332.93 Cr was 2.35x PAT; FCF of Rs.1,174.44 Cr after Rs.158.49 Cr capex
- Two SPVs transferred to Public InvIT at Rs.2,744 Cr equity value (EV Rs.4,605 Cr) completed Sep 30, 2026; Rs.2,663 Cr PMA signed Sep 29, 2026
- Effective tax rate fell from 46.00% to 32.44% YoY; cash taxes only 7.76% of PBT
Risk Factors
- Construction segment EBIT margin compressed to 13.69% from 16.77% YoY with revenue flat (+0.25% YoY)
- BOT/TOT EBIT margin slipped to 46.94% from 49.08% YoY
- Monthly toll growth decelerated through the quarter: +26% (Jul), +25% (Aug), +24% (Sep)
- Revenue growth of +8.34% YoY (H1 +4.79%) ran below the guided 9–9.5% on the quarter
- Derived consolidated net debt rose to Rs.18,239.13 Cr from Rs.18,097.14 Cr at Mar-26 despite the Rs.2,744 Cr asset-transfer receipt
- FV gain on InvITs & Related Assets fell 16.33% YoY to Rs.233.02 Cr
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.