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Stock to BUY: Shares of IRB Infrastructure rose on Monday after the company posted a strong September quarter. Analysts pointed to the firm’s InvIT investment approach and asset monetisation initiatives as key factors strengthening cash flows and supporting long-term value creation. In light of these developments, Motilal Oswal upgraded its rating on the stock to ‘Buy’.

The brokerage set a target price of Rs 52, implying an upside of around 17 per cent from the closing price of Rs 44.53. Analysts highlighted that the company’s InvIT strategy and asset monetisation plan are likely to create long-term shareholder value.

The brokerage expects IRB’s revenue to grow at 20 per cent compound annual growth rate (CAGR) between FY25 and FY28, driven by a healthy project pipeline, especially in the BOT segment, and a large order book. Motilal Oswal rolled forward its valuation to FY28 while keeping FY26 and FY27 projections unchanged.

IRB operates 26 highway projects across 12 states, forming an asset base exceeding Rs 80,000 crore. The company holds a 42 per cent share in the TOT (Toll-Operate-Transfer) segment, underscoring its dominant position in India’s road infrastructure market.

The company recently won a Rs 9,270 crore order from NHAI in Uttar Pradesh under the TOT model, pushing the asset base to Rs 90,000 crore. CEO Anil Yadav said toll revenue is expected to rise around 10 per cent, and the company targets 18–20 per cent growth in FY27. IRB currently holds Rs 3,000 crore in cash for expansion and project funding.

IRB reported a net profit of Rs 141 crore, up 41 per cent from Rs 100 crore in the same quarter last year. Total revenue edged higher to Rs 1,800 crore from Rs 1,752 crore, reflecting stable operations and steady income streams.

The board approved a second interim dividend of Rs 0.07 per share (face value Rs 1). The record date is 18 November 2025, with payment scheduled by 11 December 2025.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff