IRB Infrastructure Developers Ltd (NSE: IRB) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Anil Yadav — Chief Executive Officer, Business Development & Investments
Tushar Kawedia — Group Chief Finance Officer
Analysts:
Unidentified Participant
Alok Deora — Analyst
Aditya Sahu — Analyst
Mohit Kumar — Analyst
Presentation:
operator
Good morning ladies and gentlemen. Welcome to the IRB Infrastructure Developers Conference call for discussing the financial results for the quarter ended December 31st, 2025 along with recent developments. We have with us on call today Mr. Virendra Maheskar, Mr. S.S. rana, Mr. Anil Yadav, Mr. Mehul Patel, Ms. Poonam Nishal and Mr. Tushar Kavedia. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note the duration of this call would be 45 minutes and any queries left unanswered after the call can be subsequently mailed to the management for advocate response and resolution. Please note that this conference is being recorded. I now request Mr. Yadav to give you an overview of the significant developments during this quarter. Thank you and over to you sir.
Anil Yadav — Chief Executive Officer, Business Development & Investments
Thank you. Good morning and warm welcome to all the investor and analysts joining us on earnings call to discuss the result for Q3 of financial year 2025. I trust you have had an opportunity to review our detailed financial result and the company investor presentation. Let me briefly walk you through the key development during the context. Private INBIT has received a letter of award for TOT 18 from NHI for an upfront consideration of Rupees 3,087 crores. This is in state of Odisha. The SPV has entered a concession agreement with the NHI with this win IRU market share in TOT segment has increased to almost 44%.
This marks our second consecutive TOT win within a span of one and a half months registered our presence in new Indian state on east coast of India and another testament to our competitive strength and disciplined bidding strategy. During the quarter we have successfully concluded transfer of VM 7% receiving 513 crore towards the equity investment. With this transfer are consolidated debt will reduce Approximately by the 700 crores further strengthening our liquidity profile and debt equity ratio. This has been eventful and transformative year for IRBs. We have successfully executed our best that is build, execute, stabilize and transfer strategy monetizing matured assets through our public interest.
We have monetized assets work of 8,400 crores unlocking a equity of 4,900 crores and added a project worth 14,000 crores in terms of dot 17 and 8. As a result our asset base has expanded from 80,000 crores to 94,000. We remain on track to scale our asset bid to 140,000 crores over next three years. That capital unlocked through monetization has been redeployed into higher return growth opportunities. In line with our philosophy of sharing value creation with the shareholder, the board has approved a 1, 1 bonus issue fostering shareholder participation in company’s prosperous future trajectory. Additionally, the Board has also approved third entry improvement of 7% for Q3 of FY26 which brings the total dividend for first nine months to 21%.
On operational front, our private unit has reported a toll collection of 10.17 crores per quarter as in December 2025 compared to 8.87 8.87 crores in the same quarter last year reflecting a growth of 15% ref driven by the healthy traffic winter. The combined private Invit plus IRB portfolio achieved per day to inflection of 17.94 crores up from 16.01 crores last year representing 12% growth year on year basis. In terms of distribution, Private INVIT has declared a distribution of 50 crores contributing proportionately to IR Group cash flow. Based on our shareholding of 51%. Public Inbit has declared a distribution of approximately 192 crores for Q3 FY26.
Based on our 17% holding, IRB is expected to receive approximately 32 crores. Our order book now stands at 37,300 crores including an E order book of 6. Finally, I would like to briefly touch upon ongoing transition of IRB which we have detailed out in our presentation. Over past few years IRB has structurally evolved as a hybrid from hybrid developer to sponsor led asset manager with OM driven platform resulting in a stronger balance sheet and improved capital efficiency and enhanced cash ROE profile. We believe this transformation positions us well for the sustainable growth and long term wealth creation for the shareholder.
We have detailed out our Vision 202030 also in our presentation where we have talked about that IRB on consolidated debt to net consolidated debt to equity where net debt will reach zero and our cash ROE from 6 to 8% will be increasing to 14 to 15% and we expect around 25% growth CAGR growth in the profit till 2030. With that I conclude my opening remarks and I request Tushar to cover the financial highlight for Q3FY26. Over to you Tushar.
Tushar Kawedia — Group Chief Finance Officer
Thank you sir. Now I’ll take you through the Q3FY26 versus Q3FY25 numbers. The total consolidated income for Q3FY26 has decreased to Rs. 1912 crores from Rs. 2090 crores, a decline of 9%. The income from InvIT and related asset segment for Q3FY26 have increased to Rupees 381 crore from Rupees 245 crores registering a growth of 56%. The income from BoT segment have increased to Rupees 707 crores from Rupees 648 crore registering a growth of 9%. The income from construction segment have decreased to 783 crore from 1133 crore down by 31% mainly on account of completion of the projects like the Palsit, Dankuni Ganga and VM7 in the last three quarters.
The other income for Q3FY26 have decreased to Rs.41 crores from Rupees 65 crores. The EBITDA for Q3FY26 has increased to Rs.1063 crores from 1049 crores up by 1%. Interest cost decreased to Rs.436 crores from 461 crores a decrease of 5%. Mainly led by the reduction in the interest rate in the SPVs. Depreciation for the quarter is at 289 crores as against 265 crores increase of 9%. PBT has increased to Rs. 338 crores as against 323 crores, an increase of 5%. PAT remained at PAT has increased to 253 crores from 222 crores an increase of 14%.
Now I request moderator to open the session for question and answer.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Alok Diora from Muthilal Oswal. Please go ahead sir.
Alok Deora
Good morning. Just had few few questions. First is on this tot 19. Some. Of the other tot packages which were up for bidding. Any update on that? And we were expecting to win I think couple of more projects before the year end. So any any moment there or by when do we expect to win those projects?
Anil Yadav
Yes. So we remain optimistic about the upcoming tots. There are three four more tots to come. As regards tot 19 is concerned we have decided not to bid on it. So we have not submitted our bid in that regard. There is a specific reason for it. The reason is that NHI has stated that they will be making MLFF that is multi lane free flow compulsory for this project. And the project size is not a very big one, it is a small size project. So we have decided to pause for the time being and see what kind of response NHI is able to augur making MLFF compulsory.
Because the concern here is that MLFF has not been introduced anywhere in the country yet. Few pilots are in the making and without getting the pilot project tested straight away, introducing it on a TOT project to our mind was a little risky proposition. Hence we have decided to pause and wait and see how people respond to it.
Alok Deora
Sure. But in the other tots which will be upcoming beyond 19 beyond tot 19 there also this clause would be there or it’s just a one off in this for now.
Anil Yadav
I mean we are not anti technology, we are very much for mlff. The problem is that we want the MLFF to get tested and what is the mechanism to recover the vehicles who are not having enough balance or who don’t have a fast tag on their windshield. These are some critical issues which need to be addressed. Our IT team is in touch with IHMCL and live conversation is on. So before the next bits come up I’m sure there will be couple of pilots which would have started. There would be some more clarity that would come along and that would make things easy to participate in those projects going forward.
Alok Deora
Got it. So as of now we. Yeah, yeah please go ahead.
Anil Yadav
We thought that let’s wait and see how people are willing to factor the risk premium into this kind of proposition. That is the reason why we have decided to pause and see how it shapes us. Otherwise the strategic thought process of participating in the monetization trial remains intact.
Alok Deora
Got it. So as of now we have not bid for any. There are no pending tots which we are waiting to, you know the tenders to open.
Anil Yadav
No nothing at the moment. There are a few bids happening this month so that that will see how it they ship up. But no TOT pending at the moment.
Alok Deora
Sure. And sir, any moment in the bot toll and HAM projects since we already in mid Feb. Now. I mean the whole industry is waiting for these last couple of months to get some orders and you know get some order inflows basically. So any, any active tenders you have seen coming floating and you know, which we have also bid for and we could see some traction.
Anil Yadav
As far as EPC and HAM is concerned. You know my views on them, so I will not repeat that. But the, I mean the what do we say?
Alok Deora
Toll. Yeah.
Anil Yadav
Ferocious bidding on HAM continues with around two dozen players submitting bids for each of them. So you can imagine what kind of the competition will meet with so lesser.
Alok Deora
And anything on BOT Tool, sir, Anything on BOT Tool now off late.
Anil Yadav
There are one or two projects in. The pipeline which we are studying and. In case if they make commercial sales we may go for it.
Alok Deora
Sure. So sir, just to sum it up as of now it’s very unlikely that we would kind of win any new projects the in this financial year because tot even if you were to submit a bid now, it won’t open in time.
Anil Yadav
No. So I would submit this way that there are three more tots which definitely are likely to get financially bid out in this financial year where we are very much go ahead and bid.
Alok Deora
Got it sir, got it. That’s all from my side sir. Thank you and all the best sir.
Anil Yadav
The visibility for March is three to four more tots that may come up for. We’ll bid for those.
Alok Deora
Sure sir. All the best sir.
Anil Yadav
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of NITESH from JP Morgan Asset Management. Please go ahead.
Unidentified Participant
Hi sir, thank you very much for the presentation and quarterly update. Can you first give me some kind of visibility on the EPC revenue and profitability forward basis? Because if we see over the last few quarters the revenue and EBITDA from the EPC projects have come down quite a bit for this year. But can you give us some kind of visibility on a looking forward basis how it might look like?
Anil Yadav
I think in terms of EPC what we have already guided from the market list that we have almost 35,000 those kind of in a order book and which will be executed over the period of 10 to 12 years and in terms of that will be steady state of kind of revenue which will be a kind of NFT kind of model and it will be growing on year on year basis and that has a healthy margin. So that is a clear visibility in terms of CPC or project management services is concerned in terms of the newbody I think we will be very selective and we are focusing largely on DOT which typically has some initial capex and thereafter the which provides 15 to 20 years kind of visibility going forward also Our focus will be more on the asset business than the bagging the epc.
We are not bidding for the EPC and ham. As sir has rightly explained that there are more than two present companies participating for HAM and even some of the EPCs are getting bidded out 45, 50% below the NHID. So anyway we are not concentrating on that segment. We will be focusing. First focus will be a TOT and followed by the. Followed by the selective business on viable vot. I think you will appreciate this fact that when we say a TOT or a monetization asset it has a chunky O and M that comes along and that is a good EBITDA margin business which we believe is a better way to build the order book. Because as you keep building the order book with more of O and M coming your way a your margins are much better and the visibility of that order book is for 20, 25 years. So you’re not on a treadmill to continuously run to replenish your order book. We are structurally building the order book for a medium to long term kind of nature which we believe will actually help the company build a very solid pipeline.
Tushar Kawedia
And just to add on the basis of our existing project we have guided even the company will become headed zero by 2030. And in terms of the profitability there will be we expect around 25% CAGR in profitability and cash ROE from 68% will grow to 1415 percent by 2030.
Unidentified Participant
Thank you sir. The second question I have is can you just take us through the cash flows at IRB level. You know from distributions at private, public and Met as well as the projects at ird.
Tushar Kawedia
Yeah. So the present. Cash and bank balance you can say is around 25 billion. And from a distribution what we generally are getting from the public and private investments. So this quarter the distribution was close to 60 billion. And this is going to grow because more of the projects will become operational from the coming quarters. So with dot 17 and 18 which will also contribute to the distribution from next quarter onwards this cash flow distribution is going to increase for us from next year.
Anil Yadav
I think what Kushar was explaining the distribution, what was contributed by both the was around 60 crore. Not 60 billion.
Tushar Kawedia
60 crores. Sorry, 60 crores for the quarter.
Unidentified Participant
From Pune Mumbai Expressway and the Padra, those boardtalk projects. So do you get any cash flows from assets at IRB or do they mostly are used to better those entities?
Anil Yadav
Yeah. So if you look at broad cash flow, I think if you talk about the project management services which is Nothing but your om. I think O and M on consistent basis there will be a 7 to 8 billion EBITDA will be coming from the O there we are not facing any new business and Mumbai only gradually distributing around 4 to 5 million kind of distribution and going forward around 4 to 5 billion kind of distribution we are expecting from the private element and public invit will remain around close to 1 1.5 billion kind of of distribution which will be coming from the public admin.
So this entire cash flow, cash flow will be available for IRB and going forward IRB is not required to put any additional equity in the new budget as the management is contemplating multiple churn of the asset. Out of that churn of the asset, the equity for the river we created as we have transferred three assets we realized 49 billion kind of equity. And the asset size which we transferred was around 84 billion. We have added was around 140 million. And after this addition we have even transfer VM7 where we realize around 5 billion of cash on account of it be should.
So I think going forward the cash generation will be consistently building on the backdrop of increase in addition of the asset. But there will not be any outflow in terms of equity from the list for company perspective.
Unidentified Participant
Right sir. That’s clear. That’s it for me. Thank you.
Anil Yadav
Thank you.
operator
Thank you very much. Participants that wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of Aditya Sahu from HDFC Securities. Please go ahead.
Aditya Sahu
Hi sir. I hope I’m audible.
Anil Yadav
Yes sir.
Aditya Sahu
Thank you so much for the opportunity. I just had one or two questions. This was on the bid pipeline. So you know as it mentioned that you’re looking at three more tots to come up for the breeding in this financial year right till March. So what would be the value of those tots that are coming up and any more tots in the future? Like if I were to understand from a value standpoint.
Anil Yadav
So as you know, usually NHI does not disclose the IECV of the tots when they bid out for projects. But going by the data available in. Terms of the daily toll, revenue and corresponding data points that we have these projects together, the three of the projects should somewhere augment around 10 to 12,000 crores.
Aditya Sahu
Okay, okay. Okay.
Anil Yadav
That’s the potential we believe these projects would have.
Aditya Sahu
Understood sir. And on the beauty, because I understand that I think last time we were sort of expecting roughly 30,000 crores in beauty. Like that 3 billion was the we were Expecting, but, but I think, I think that is not happening because of the subdued building yet. Is there any expectation on the BOT or the overall bid pipeline, if I were to put it that way, would stand close to 10 to 12,000 crores only.
Anil Yadav
Yeah. So just to give you a perspective, we are not looking at BOT alone. The idea is to deploy patient capital to create value over period of time. So we are not trying to distinguish between BOT or tot. Whether it is build, operate, transfer or buy operate, transfer, it really doesn’t make much difference to us. The idea is what will create more long term value. So if we see the visibility coming more on the monetization side, we will deploy the capital more on the DOT side. If we see there is a viable proposition on the BOT side, we will definitely go in for that as well.
So while as you said we were looking at around 1012,000 crores of projects because the DOT did not materialize in terms of viability proposition, we saw the TOT opportunity was very good and we in fact ended up winning 14,000 crores of projects in the last three months. But they were on the TOT side. So we have substantially created value but more on the TOT side and which has much much lesser risk metrics to my mind.
Aditya Sahu
Understood sir. If I were to put a number on the overall big pipeline which would comprise of the TOTS and the bots and all the other revenue, this thing, what would that be? This thing would be helpful if I.
Anil Yadav
Just speak for monetization. The government official documents Talk about around 3 lakh crores of total toll road. Monetization of that certain amount will go towards their own NHI inwards but on a very conservative manner also. If I look at around 30 to 50,000 crore is the annual opportunity that monetization is about to bring up and this is an annual opportunity for next four years. So that to my mind is a significant one. And you have also seen the policy statement from the government where they are trying to pivot toward more viable BOT options. So we are studying those as well.
But there I am not able to put a number because they are now approving projects on a project to project basis after having new studies and cabinet approvals and things like that. But on a policy front I think this is the kind of visibility that they have talked about. A detailed slide in our presentation will give you more flavor on what kind of opportunity visibility exists.
Aditya Sahu
Understood. So that should ideally be the BIT pipeline for you. The annual port initiatives targeting as a.
Anil Yadav
Whole for the kind of appetite IRP has in terms of growth for the next foreseeable future, I think there is significant amount of opportunity available to deploy the growth capital.
Aditya Sahu
Understood sir, understood. And I think we had mentioned earlier the O and M margins we are fighting at 20 to 23%. So that continues to be in place for the financial year.
Anil Yadav
I’ll tell you a little more granular understanding. If you look at the BOT TOT business that has an EBITDA margin of around 85% and if you look at the EPC or the construction O and M business, you will see around 18%, 20% kind of margin profile for that business. That. That’s how I’ll sum it up.
Aditya Sahu
Okay? Okay. Understood sir, understood. Thanks a lot for the opportunity. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Good afternoon and thanks for the opportunity. Mike, I have one question on the industry side. What kind of changes are being discussed in the new BOT concession agreement? Are you guys looking, suggesting some suggesting or looking for any major changes?
Anil Yadav
I think this is ongoing reform and with every passing project we see some more visibility coming into it. Now from a developer perspective, from a lender perspective, from a client perspective, everyone would have different take on the reforms that are being talked about. But having been a pioneer in the sector and being in BOT for more than 30 years, I think every change is a step in in the positive direction. So not wanting to elaborate into any specific provision whether it is good, bad or decisive. But I think the ultimate objective is whether the project will make a reasonable return commensurate with the risk attached.
I think that that remains the focal point how one decides whether he wants to commit capital for it or not.
Mohit Kumar
But was there something specific which is holding up the new bot? New BOT bids?
Anil Yadav
Okay, so to give you a little more granular understanding, the low hanging fruit as I would talk about like say a two to four laning project or four to six laning project, not many remain to be bid out now because India has already grown past that phase of growth. Today the bots that we come across are more exotic in nature, more complex in nature. And the tolling structure on these projects is also complex because as you know, if the project is structure heavy, then the toll tariff depending on the project or cost of that structure is five times of that structure cost and things like that.
There are complex issues as to whether the traffic will use the structure or whether want to Go below the structure. What happened to the toll tariff for. People who are not using the structure. Whether they should be allowed to pay lesser toll. And all these things create a significant overhang on the viability of the project. So that’s the reason why I said this. That viability of the project commensurate with the risk attached is the key thing that one would look at going forward. While bidding for bot. It is no longer straightforward brownfield opportunity where you can access the risks and bid more comfortably. These are complex projects and unless you have a very good handle on the risks attached, it is, I mean advisable to be prudent and what we can say study the risks properly before committing capital.
Mohit Kumar
Understood? Understood. Thank you. So that’s very helpful. My second question is that you spoke about the multi multi LAN flow. I think mmlf is it being implemented also for new bots? It’s only for the tots. And.
Anil Yadav
See the endeavor of the government is to bring in to play MLFF across. It is an ongoing transition like what we saw in Fast Tag. People had a taboo about Fast Tag also Fast Tag today is the way forward. I mean today 97 we are very proudly. We keep saying that 97, 98% of our revenue comes from fast tech. So I am not having any reservations about mlss. It is a technology which exists in other parts the of world. It has its challenges, we need to address those. We need a credible probably a settler who can take the intermediate risk.
And if we structure it right, it is a technology which can be brought in in a very aggressive manner in India as well. I think on 1819 sir has also explained that in a matter of was not the only reason why we have not made it. One was the size was low and secondly, this asset was operational under VOT and VOT concession was over. And post that from last three, four years NHI is already collecting loans. It’s a debtor asset. There was. We believe that there was some maintenance issue as well. I think considering other issues, we have decided not to bid for the tot 19 not only the MLFM.
Mohit Kumar
Understood, understood. This is helpful. Thank you. Thank you.
operator
Thank you very much. As there are no further questions from the participant, I now hand the conference over to the management for the closing comments.
Anil Yadav
So thank you everyone for taking your time out for this quarterly call and look forward to connect with you again for the next one. Have a great day and great week ahead. Thank you.
operator
Thank you sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using Research Bites Conferencing Services. You may please disconnect your lines now. Thank you and have a great day ahead.