Highway Infrastructure wins Rs 24.46 crore NHAI toll collection contract in Tamil Nadu

Highway Infrastructure Ltd has secured a Rs 24.46 crore work order from the National Highways Authority of India, or NHAI, to operate and collect toll fees at the Velanchettiyur Fee Plaza in Tamil Nadu.

The company signed the contract agreement with NHAI on October 8, 2026, following an earlier letter of acceptance. The mandate will run for 90 days and covers the fee plaza on the four-lane Karur-Dindigul section of NH-7.

Besides toll collection, Highway Infrastructure will be responsible for the maintenance of toilet facilities near the plaza, including the replenishment of consumables. The contract adds to the company’s tollway collection activities in southern India, where it has been seeking to widen its presence on high-traffic national highway routes.

The order is modest in relation to the company’s overall scale but is strategically aligned with its effort to expand its tolling footprint beyond its established markets. Based on FY26 consolidated total income of Rs 633.42 crore, the new contract is equivalent to about 3.9 per cent of annual income. Since the assignment is only for 90 days, the immediate revenue contribution will depend on execution during the contracted period.

Tollway collection is Highway Infrastructure’s largest business vertical. It accounted for 73.7 per cent of consolidated revenue in FY26, while EPC infrastructure contributed 19.8 per cent. At the end of March 2026, management had reported seven active tollway contracts across six states, with an aggregate contract value of Rs 765.8 crore and a balance contract value of Rs 526.1 crore.

The latest Tamil Nadu award also follows management’s stated push into new geographies. In its recent quarterly interaction, the company had highlighted toll wins in the state as an entry into a major freight, manufacturing and Logistics corridor, while identifying other southern, eastern and north-eastern markets for opportunity-led expansion.

Managing Director Arun Kumar Jain said the Velanchettiyur mandate would expand the company’s tollway collection portfolio and strengthen its presence across key national highway corridors. He added that continued contract wins and operationalisation could support medium-term revenue visibility, although the company’s ability to retain and execute toll mandates remains dependent on traffic volumes, collection controls and route-specific economics.

That qualification is particularly relevant after a weak June quarter for profitability. Net sales rose 170.9 per cent year-on-year to Rs 303.28 crore in the June 2026 quarter, but profit after Tax fell 85.3 per cent to Rs 1.06 crore. Operating profitability also weakened, with the PBIDT margin falling to 1.25 per cent from 10.29 per cent a year earlier. Management attributed the pressure largely to lower traffic on an affected toll corridor and had said collections were beginning to normalise.

The toll business has an asset-light profile but carries execution risk because profitability depends on collections exceeding committed payments and operating costs. Highway Infrastructure has said it uses an in-house toll management platform to monitor collections, identify discrepancies and reduce leakage at sites.

As of 9:57 AM on October 9, 2026, Highway Infrastructure shares were trading at Rs 47.56, down 0.77 per cent from the previous close of Rs 47.93. The stock was about 40.8 per cent below its 52-week high of Rs 80.29, though around 16 per cent above its 52-week low of Rs 40.99. Over the past year, the shares have declined 42.53 per cent, compared with a 6.73 per cent fall in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.