IRB Infrastructure Developers Ltd. (IRB Infra) delivered a robust performance in the September 2026 quarter, with its net profit soaring by 85% year-on-year to Rs 260 crore. This strong showing has led domestic brokerage firms to reiterate their positive outlook on the company's shares, forecasting an additional 20% upside potential.
Q2FY27 Financial Highlights
The infrastructure major's operational revenue for the quarter ended September 30, 2026, increased by 8.33% year-on-year, reaching Rs 1,897 crore. Key performance indicators also demonstrated significant growth:
- EBITDA: Jumped 14% year-on-year to Rs 1,050 crore.
- Margins: Expanded by 280 basis points, settling at 55.6% for the quarter.
- Toll Revenue: Grew 24% year-on-year to Rs 773 crore.
Additionally, IRB Infra announced an interim dividend of Rs 0.05 per share for eligible shareholders, with November 12 set as the record date.
Stock Performance and Analyst Outlook
On Monday, IRB Infra shares closed at Rs 18.27, marking a 5.36% increase for the day and commanding a market capitalization slightly exceeding Rs 22,000 crore. While the stock has seen a 24% decline from its 52-week high of Rs 23.94 recorded in May 2026, it still represents a remarkable 650% gain from its COVID-19 lows of around Rs 2.42.
Motilal Oswal Financial Services Ltd. highlighted IRB Infra's steady performance, attributing it to rising toll collections and a strategic focus on bidding for Toll-Operate-Transfer (ToT) projects. The brokerage firm expects earnings growth to be primarily driven by Operations & Maintenance (O&M) and toll revenue, rather than core EPC construction. With an order book standing at Rs 43,300 crore as of September 2026, Motilal Oswal projects a revenue and EBITDA CAGR of 19% and 21% respectively over FY26-28, maintaining a 'buy' rating with a target price of Rs 22.
InCred Equities echoed this positive sentiment, citing attractive valuations. They noted the transfer of three projects to private InvITs in 4QFY26-1QFY27 and an additional three to public InvIT in November 2025. InCred Equities assigned an 'add' rating with a target price of Rs 22, valuing the EPC business at 3.5 times FY28F EV/EBITDA and other segments accordingly.
Strategic Focus on O&M and Toll Projects
IRB Infra's strategic shift towards O&M and toll-based projects is seen as a key driver for sustainable earnings. The company's ability to consistently increase toll collections and expand its order book for maintenance and operational contracts positions it favorably for continued growth in the Indian infrastructure sector.