IRB Infrastructure Developers Aims to Expand Asset Base By Rs 200,000 Crore By 2032

IRB Infrastructure Developers Ltd. aims to expand its asset base more than threefold by 2032, supported by opportunities arising from the government’s push to build national highways. The company’s Director of Investor Relations, Anil Yadav, said that he expects IRB Infrastructure Developers’ existing Rs 80,000 crore asset base to reach Rs 280,000 crore in the next eight years. 

The Indian government has plans to increase the length of national highways to over 2 lakh kilometres to cut down logistical costs as it gears to make India a developed nation by 2047.

“In terms of long-term opportunities, the government has set a target to increase the national highways to 2 lakh kilometres over six to eight years. As of now, the total length of four-lane, more-than-four-lane national highways is almost 1 lakh kilometres. They are considering 1 lakh kilometres more of the highway to be constructed or widened,” he said.

This opportunity will have a capital outlay of Rs 15 trillion, Yadav said.

“We expect that considering the budget allocation, we will have a Rs 20 trillion PPP (Public-Private Partnership) opportunity. The company will be eyeing 10% of that opportunity, which is to the extent of Rs 2 trillion,” the top executive revealed.

This will result in the asset base of IRB Infrastructure Developers growing over three times by 2032, Yadav noted. 

“As of now, we have an asset base of Rs 0.8 trillion. So we expect it to grow to Rs 2.8 trillion by 2032. So the asset base will be more than triple by 2032,” he said.

IRB Infrastructure reported its earnings for the second quarter of fiscal 2025 on Wednesday, posting a net profit of Rs 99.8 crore versus Rs 95.7 crore a year ago.

Total income stood at Rs 1751.6 crore in Q2 FY25, a 6.5% YoY drop from Rs 1,874.5 crore from Q2 of last fiscal.

The top executive noted that the company is also eyeing opportunities to increase its order book in the near term. This includes toll collection projects.

“In terms of the near-term opportunity, there are BOT (Build-Operate-Transfer toll model) projects of Rs 36,000 to Rs 37,000 crore available for bidding this financial year,” Yadav said.

“Apart from that, there are four TOT (Toll-Operate-Transfer toll model) projects already lined up to be bidi out in November and December,” he added.

Most of the revenues of IRB Infrastructure Developers come from the toll road business, while the engineering, procurement and construction vertical contributes to just 15% of the company’s total valuation, the top executive highlighted.

“Whatever project we will bag now, we will start execution from the next financial year and it will take four to six months to start,” he said.

Shares of IRB Infrastructure Developers Ltd. plunged nearly 4.6% to touch the day’s low of Rs 51.51 on Thursday on the NSE. The stock was trading 4.4% lower at Rs 51.67 apiece on the NSE, against the benchmark index's decline of 0.54% at 1:24 p.m.