HG Infra Engineering rallies 6% on securing battery storage deal from NTPC

Shares of HG Infra Engineering gained up to 5.60 per cent at Rs 1,542.05 a piece on the BSE in Tuesday’s intraday trade. HG Infra share price moved up after the company announced that its subsidiary HG Banaskantha BESS Pvt Ltd has signed a battery energy storage purchase agreement with NTPC Vidyut Vyapar Nigam Limited for a 185 MW/370 MWh project on a long-term basis.  

 

“We wish to inform you that the H.G. Banaskantha Bess Private Limited, a wholly owned subsidiary of HG Infra Engineering entered into a battery energy storage purchase agreement with NTPC Vidyut Vyapar Nigam Limited on December 23, 2024 for procurement of 185 MW/ 370 MWH on long term basis,” the company said in an exchange filing on Monday.

 

In a separate filing, the company also informed that it has acquired 28,40,000 equity shares of Rs. 10 each for an amount aggregating to Rs 2.84 crore in HG Jetpur Solar Project subsidiary of the company by way of subscription of rights issue.  

 

In the second quarter of financial year 2024-25 (Q2FY25) HG Infra’s profit dropped 16 per cent year-on-year (Y-o-Y) to Rs 80.7 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 96.1 crore in the September quarter of financial year 2024 (Q2FY24).

 

The company’s revenue from operations dropped 5.5 per cent Y-o-Y to Rs 902.4 crore in the September quarter of FY25, from Rs 954.5 crore in the September quarter of FY24. At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), fell marginally (0.3 per cent) annually to Rs 219.5 crore in Q2FY25, from Rs 220.1 crore in Q2FY24. 

 

However, Ebitda margin expanded 130 basis points (bps) to 24.3 per cent in the September quarter of financial year 2025, from 23 per cent in the September quarter of financial year 2024. 

 

The company has a total market capitalisation of Rs 9,788.70 crore. Its shares are trading at a price to earnings multiple of 16.49 times and at an earning per share of Rs 91.09. 

 

At 10:37 AM; the shares of the company were up 2.49 per cent at Rs 1,496.55 a piece. By comparison, the BSE Sensex was trading 0.40 per cent higher at 78,856.26 level. 

 

HG Infra Engineering is engaged in engineering, procurement and construction (EPC) business including maintenance of roads, bridges, flyovers and other infrastructure contract works.