Highway Infrastructure: ₹198.31 crore CPWD order

Highway Infrastructure Limited (NSE: HILINFRA)

has received a ₹198.31 crore CPWD order for constructing residential and non-residential infrastructure for a CISF battalion in Madhya Pradesh. The contract will be executed over two years. This is a significant order for the company. Its value represents approximately 32.6% of FY26 revenue and 154.3% of existing annual EPC segment revenue. The company could recognise approximately ₹99 crore of annual revenue if execution is evenly distributed over two years. This is an estimate, not company guidance. Management has indicated a general EPC bidding gross-profit threshold of 13–14%. Applying this assumption gives potential gross profit of ₹25.8–27.8 crore over the project period, before overheads, interest and taxes. The key concern is cash conversion. The company's FY26 standalone operating cash flow was negative ₹63.07 crore despite reporting positive profits. Working capital requirements and payment terms will therefore be important. Investors should not confuse the order value with incremental profit. The actual benefit will depend on execution speed, project margins and timely payments. My view is positive on the business development.