Credit Rating

HIGHWAY INFRASTRUCTURE LIMITED CIN : L42909MP2006PLC018398 REG. OFFICE ADDRESS: 57-FA, SCHEME NO. 94, PIPLIYAHANA JUNCTION, RING ROAD, INDORE, (M.P.) – 452016, INDIA Tel: +91-731-2590013, 4047177 E-Mail:hiplindore@gmail.com, Visit us at : www.highwayinfrastructure.in 27th July, 2026 To, To, The Secretary, The Secretary, Corporate Relationship Department, Listing Department, BSE Limited National Stock Exchange of India Ltd. P. J. Towers, Dalal Street Exchange Plaza, BKC, Bandra (E) Mumbai- MH 400001. M umbai - MH 400051. Scrip Symbol: HILINFRA | Scrip Code: 544477 | ISIN: INE00RL01028 Subject: Intimation of Credit Rating under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘Listing Regulations’), we hereby inform you that Infomerics Valuation and Rating Limited has reviewed the rating for the following instruments: Facilities Rating Long Term Rating IVR BBB+/Stable (Rating Assigned) Short Term Rating IVR A2 (Rating Assigned) Total Bank Loan Facilities Rated Rs. 200.88 Crore A copy of press release dated 27 July 2026 is enclosed herewith as annexure. The above information is also available on the website of the Company at: https://www.highwayinfrastructure.in. Kindly take the same on records. Thank You, For Highway Infrastructure Limited Palak Rathore Company Secretary & Compliance Officer Membership No. – A-73755 Encl: As below. Press Release Highway Infrastructure Limited July 27, 2026 Rating Action Total Bank Loan Facilities Rs. 200.88 Crore Regulator^ Rated Long Term Rating IVR BBB+/Stable (Rating Assigned) RBI Short Term Rating IVR A2 (Rating Assigned) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale The ratings assigned to the bank facilities of Highway Infrastructure Limited (HIL) derive strength from the extensive experience of its promoter in the infrastructure industry and diversified revenue stream with diversified geographical presence. The ratings also consider healthy scale of operation of the company in FY26 [FY refers to the period from April 1 to March 31] coupled with satisfactory capital structure and satisfactory debt service coverage indicators. The rating also positively notes the strong order book position of the company reflecting a healthy near to medium term revenue visibility. However, these rating strengths are partially offset by HIL’s moderate operating margin in FY26, short term tenure of toll collection contracts and uncertainty regarding renewal of contract for toll collection, exposure to traffic risk and other challenges pertaining to toll operation business, presence in highly fragmented & competitive operating scenario, susceptibility of operating margin to volatile input prices, sizeable working capital requirement and bank guarantee execution risk. Outlook: Stable The stable outlook reflects HIL is expected to maintain its growth trajectory in the near to medium term, supported by timely and efficient execution of its existing order book and its demonstrated ability to secure new orders. Analytical Approach Approach Comments Consolidation/ Standalone Consolidated Parent/ Group Support For arriving at the rating, IVR has considered consolidated financials of Highway Infrastructure Limited (HIL) and its subsidiary – Highway and Tandon Tollways Private Limited. (List of entities consolidated are mentioned in Annexure 4) Page | 1 www.infomerics.com Press Release Key Rating Drivers with Detailed Description Strengths • Extensive experience of the promoters in the construction industry Mr. Arun Kumar Jain is the managing director of the company having a vast experience of over three decades in the field of real estate and civil construction business. Benefits derived from the promoters’ experience along with their strong understanding of construction industry and healthy relationship with customers and suppliers is expected to continue and support the business going forward. The company is also being supported by a team of experienced and qualified professionals in managing its day-to-day business activities. • Diversified revenue stream with diversified geographical presence Highway Infrastructure Limited (HIL) derives its revenues from three business segments, namely toll collection, engineering, procurement and construction (EPC), and real estate development, resulting in diversification of its revenue profile. The toll collection business is the company's principal revenue contributor (~77% of TOI in FY26) and differentiates its business model from that of conventional EPC contractors. HIL undertakes toll collection contracts awarded primarily by the National Highways Authority of India (NHAI) and various state government agencies across multiple states. The company also executes EPC projects (~19% Total operating income (TOI) in FY26) involving highways, bridges, urban infrastructure, and residential and commercial buildings for government agencies, including NHAI, Public Works Departments (PWDs), and municipal bodies. In addition, HIL has a relatively modest presence in the real estate segment through the development of plotted townships, residential housing, and commercial projects. While the toll collection business provides relatively stable cash flows, the EPC and real estate segments support revenue diversification and augment the company's overall business profile. The company benefits from nearly three decades of operating experience, established relationships with government authorities, geographical diversification across multiple states and Union Territories. The current order book of the company spans across various states like Madhya Pradesh, Andra Pradesh, Gujarat, Uttar Pradesh, Haryana, Rajasthan, Delhi, Punjab and Chhattisgarh thereby indicating a geographically diversified revenue profile for the company. • Healthy scale of operation albeit, moderate operating margin HIL's operating income witnessed a sharp increase from Rs.269.43 crore in FY23 to Rs. 576.56 crore in FY24, supported by healthy execution across its toll collection and EPC businesses. Although the operating income moderated to Rs.503.73 crore in FY25, it improved to Rs. 612.98 crore in FY26, reflecting sustained business momentum and healthy order execution. Toll segment has witnessed y-o-y growth of ~23% from Rs. 382.41 crore in FY25 to Rs.471.43 crore in FY26 primarily driven by Page | 2 www.infomerics.com Press Release higher toll collections under NHAI fee collection contracts, supported by a larger scale of operations coupled with higher traffic across the awarded projects. Against the collections, the company remitted ~Rs.438 crore to NHAI as royalty/contract consideration and retained the balance surplus of ~Rs.33 crore as its earnings from toll collection operations. The EPC segment has witnessed steady growth, with its contribution to TOI increasing from ~13% in FY24 to ~19% in FY26, reflecting the gradual scaling up of the execution business. Revenue from the real estate segment continues to remain modest, contributing less than ~2% of the total operating income during the period. EBITDA increased from Rs.22.80 crore in FY23 to Rs.41.55 crore in FY24, before moderating to Rs.39.34 crore in FY25 and Rs.31.04 crore in FY26. Consequently, the operating margin declined to around 5.1% in FY26 from 7.2%-8.5% during FY22-F [Showing first 8,000 characters — download PDF for full document]