Infomerics Assigns IVR BBB+/Stable & IVR A2 Ratings to HIL's ₹200.88 Crore Bank Facilities
Infomerics has assigned an IVR BBB+/Stable rating to Highway Infrastructure Limited's long-term bank facilities and IVR A2 to its short-term facilities, totaling ₹200.88 Crore. The ratings consider HIL's promoter experience, diversified revenue, and strong order book, offset by moderate margins and contract risks. FY26 operating income was ₹612.98 crore, with PAT at ₹31.81 crore.
Credit ratings directly impact a company's borrowing costs and access to capital. A stable rating of BBB+ suggests a moderate level of credit risk, which is material for ongoing and future financing activities.
The assignment of a stable credit rating (BBB+/Stable) by Infomerics indicates a positive assessment of the company's creditworthiness and future prospects, despite acknowledging certain risks.
Highway Infrastructure Limited (HIL) has received credit ratings for its bank loan facilities from Infomerics Valuation and Rating Limited. The long-term rating assigned is IVR BBB+/Stable, and the short-term rating is IVR A2. These ratings apply to total bank loan facilities amounting to ₹200.88 Crore.
The rationale for these ratings highlights HIL's extensive promoter experience in the infrastructure industry, a diversified revenue stream from toll collection, EPC, and real estate development, and a healthy scale of operations. The company's strong order book position, providing near to medium-term revenue visibility, and a satisfactory capital structure post-IPO also contribute positively.
However, the ratings are partially offset by moderate operating margins in FY26, the short tenure of toll collection contracts with renewal uncertainties, exposure to traffic and operational risks, a competitive market scenario, susceptibility to volatile input prices, and significant working capital requirements. Infomerics notes that the stable outlook reflects HIL's expected growth trajectory, supported by order book execution and its ability to secure new orders.
Financially, HIL's total operating income grew to ₹612.98 crore in FY26, though EBITDA moderated to ₹31.04 crore, resulting in an EBITDA margin of 5.1%. Profit After Tax (PAT) increased to ₹31.81 crore in FY26. The company's capital structure has strengthened post-IPO, with an adjusted tangible net worth of ₹228.18 crore as of March 31, 2026. The interest coverage ratio stood at 4.89x in FY26.
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Highway Infrastructure Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Highway Infrastructure Limited. Read the original for the full detail.