HG Infra shares rise 4% on bagging battery storage contract in Gujarat

Shares of HG Infra Engineering rose as much as 3.67 per cent at Rs 1,379.65 a piece on the BSE in Monday’s intraday trade. The stock price surged after the company on Saturday disclosed that it has been declared as a qualified bidder by the Gujarat Urja Vikas Nigam for a battery storage project. 

 

“We wish to inform you that HG Infra Engineering has been declared as a qualified bidder by the Gujarat Urja Vikas Nigam for 250 MW/500 MWH out of the project for setting up of 500 MW/1000 MWh standalone battery energy storage systems in Gujarat under tariff-based global competitive bidding with viability gap funding support,” the company said in an exchange filing. The project will be completed within 18 months. 

 

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

 

In the recently concluded 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. 

 

On the bourses, HG Infra’s stock has outperformed the market year to date as it has risen 59 per cent, while gaining 56 per cent in the last one year. In comparison BSE Sensex has risen 10 per cent year to date and 18 per cent in a year. 

 

The company has a total market capitalisation of Rs 8,798.10 crore. Its shares are trading at a price to earnings multiple of 14.82 times and at an earning per share of Rs 91.01. 

 

At 10:45 AM; the shares of the company were trading 1.59 per cent higher at Rs 1351.90 a piece. By comparison, the BSE Sensex was down 0.16 per cent at 79,672.62 level.