Highway Infra Secures ₹24.46 Crore Toll Operations Contract From NHAI

Market snapshot: Highway Infrastructure Limited has received a Letter of Acceptance from the National Highways Authority of India for toll operations at the Velanchettiyur Fee Plaza in Tamil Nadu. The contract is valued at ₹24.46 crore and is scheduled for execution over a 90-day period. This contract strengthens the company's geographical footprint in South India.

Data Snapshot

• The contract is valued at ₹24.46 crore for the Velanchettiyur Fee Plaza toll operations in Tamil Nadu.
• The project is located on the Karur-Dindigul section of NH-7 and has a contract duration of 90 days.

What's Changed

• The company's contract wins in September and October 2026 have accumulated to over ₹245.12 crore, demonstrating a substantial ramp-up in short-term revenue pipeline.
• The addition of Southern India projects expands its historical concentration from Madhya Pradesh to high-traffic national corridors.

Key Takeaways

• Secures a strategic tolling mandate from NHAI for the Velanchettiyur Fee Plaza on NH-7, one of Tamil Nadu's high-traffic highway segments.
• Provides immediate cash-flow visibility with an execution period of 90 days and contract value of ₹24.46 crore.
• Reinforces the company's asset-light toll operations portfolio, which contributed over 77% of total revenues in FY25.

SAHI Perspective

This win demonstrates Highway Infrastructure's ability to maintain high bid-competitiveness for national toll plazas. The 90-day execution window suggests an immediate collection model, which improves working capital velocity. By diversifying geographically into Tamil Nadu, the company reduces regional economic risks while capitalising on the high freight corridor traffic of the Karur-Dindigul section.

Market Implications

The addition of this NHAI contract, coming immediately after a major ₹220.66 crore order from UPEIDA, indicates an aggressive expansion phase. This sustained momentum in securing toll concessions is likely to positively impact near-term EBITDA margins, as tolling operations typically carry higher operating leverage compared to raw EPC projects.

Trading Signals

Market Bias: Bullish

The contract win adds ₹24.46 crore in high-certainty tolling revenues, continuing a strong multi-week order win streak totaling over ₹245 crore.

Overweight: Infrastructure Developers, Toll Road Operators

Trigger Factors:

• Commencement of fee collection at the Velanchettiyur Fee Plaza.
• Bimonthly toll collection run-rate announcements from current projects.

Time Horizon: Near-term (0-3 months)

Industry Context

India's national highway network has expanded significantly, with NHAI driving monetisation through both long-term Toll-Operate-Transfer models and shorter-term toll fee collection auctions. Advanced systems like FASTag and Automatic Number Plate Recognition have significantly reduced revenue leakage, making short-term tolling operations highly attractive for private players.

Key Risks to Watch

• Traffic volume volatility on the Karur-Dindigul section of NH-7 during the 90-day period.
• Local regulatory issues or resistance to toll fee hikes, potentially impacting collections.
• Shorter contract tenures expose the company to frequent re-bidding risks to maintain its order book.

Recent Developments

The company recently bagged a ₹220.66 crore toll operations contract for the Gorakhpur Link Expressway from UPEIDA on September 18, 2026. Prior to that, in July 2026, it received a credit rating of IVR BBB+/Stable from Infomerics and bagged a ₹28.69 crore NHAI toll operations contract.

Closing Insight

By bagging multiple national and state-level toll contracts, Highway Infrastructure Limited is capitalizing on leakage-free electronic tolling environments, securing high-velocity revenues that strengthen its financial resilience.

High Performance Trading with SAHI.