Infra stock jumps 4% after announcing plans to enter battery energy storage sector

A leading infrastructure and construction company, renowned for its expertise in highway development and civil engineering projects, is making strategic moves into the green energy sector. The company’s groundbreaking announcement of a new subsidiary focused on battery energy storage systems signals an ambitious expansion into sustainable energy solutions.

Share Price Movement 

The share price of H.G. Infra Engineering Limited went up 3.8 percent to Rs. 1,295.75 per share on Thursday, an increase from its previous close of Rs. 1,247.95 per share. The market capitalisation now stands at approximately Rs. 8,340.6 crore as of February 06, 2025.

Recent Update  

HG Infra has established a wholly-owned subsidiary, “H.G. Gujarat Bess Private Limited,” to operate in the Battery Energy Storage System sector. This Special Purpose Vehicle (SPV) has an authorised capital of Rs. 15,00,000, divided into 1,50,000 equity shares of Rs. 10 each.

Q3 Financial Highlights

In Q3FY25, revenue stood at Rs. 1,265 crore, declining 7.3% YoY from Rs. 1,365 crore in Q3FY24 but rising 40.3% QoQ from Rs. 902 crore in Q2FY25. Profit for Q3FY25 was Rs. 115 crore, reflecting a 12.7% YoY growth from Rs. 102 crore in Q3FY24 and a 42% QoQ increase from Rs. 81

Competitors 

Listed competitors of HG Infra Engineering include Larsen & Toubro, Rail Vikas Nigam, GMR Airports Infrastructure, IRB Infrastructure Developers, and PNC Infratech.

H.G. Infra Engineering is currently trading at a P/E of 15.55, which is below the industry P/E of 23.67.

Market Outlook

India’s road infrastructure is expanding rapidly, strengthening economic growth and connectivity. With the second-largest road network globally, highways play a crucial role, carrying over 40% of traffic despite being just 2% of the network. National highway expansion has surged, reaching 146,145 km by 2023, driven by projects like Bharatmala Pariyojana.

The Gati Shakti program further enhances logistics by integrating transport modes, improving efficiency, and supporting India’s goal of becoming a $5 trillion economy by FY 2026-27.

Written By Fazal Ul Vahab C H

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