Motilal Oswal released its research report on IRB Infrastructure covering the first quarter of fiscal year 2027. The report highlights key financial figures and future outlook for the company.
Revenue for Q1FY27 rose about 2% year‑on‑year to ₹21.3 billion, which is roughly 5% higher than the analysts’ estimate. The increase was driven by gains on InvITs and related assets measured at fair value, as well as dividend and interest income from those assets.
EBITDA margins for the quarter were 53.9%, slightly below the 55% estimate. The margin improved by 850 basis points compared to the same period last year, but slipped 230 basis points from the previous quarter.
EBITDA itself grew about 21% year‑on‑year to ₹11.5 billion, matching the analyst’s forecast. This growth reflects the company’s ability to maintain profitability while expanding revenue.
Adjusted profit after tax (APAT) jumped 51% to ₹3 billion, which is 10% above the expected figure. This strong performance underscores the company’s effective cost management and revenue generation.
The analysts project a revenue compound annual growth rate of 19% for the period FY26‑FY28, assuming EBITDA margins remain stable. They expect the company to continue delivering solid earnings in the coming years.
Motilal Oswal keeps its BUY recommendation for IRB Infrastructure and sets a target price of ₹25 based on a Sum of the Parts (SoTP) valuation. The firm maintains its confidence in the company’s long‑term prospects.