HG Infra Engineering shares jump over 8% after receiving LoI from REC

Shares of infrastructure development company HG Infra Engineering jumped over 8% to Rs 551.95 on the BSE on Wednesday, after the company received a letter of intent from REC Power Development and Consultancy Ltd, which is a wholly owned subsidiary of REC Ltd.

In a regulatory filing on the BSE released on Tuesday, the company informed that it has received the letter of intent for the construction of 220/132/33 kV AIS Substation in Ranipur (Mau), and for 220/132/33kV AIS Substation in Chunar (Mirzapur), with their associated lines through a tariff-based competitive bidding process in the state of Uttar Pradesh.

The company had announced in May that it had been declared as a qualified bidder by the REC Power Development and Consultancy Ltd to build, own, operate and transfer the above-mentioned substations, and had secured the order with transmission charges worth Rs 45 crore per year for a period of 18 months.

HG Infra Engineering Q1 results

The company had reported a 77.5% year-on-year decline in its Q1 profit after tax to Rs 28.3 crore, from Rs 125.5 crore in the corresponding quarter of the previous year. Revenue from operations in the June quarter slipped 46.9% to Rs 907.2 crore, from Rs 1,709.2 crore in the same quarter last year.
The company’s EBITDA for this quarter stood at Rs 77 crore, down 67.3% from Rs 235.7 crore in the June quarter of FY26.

HG Infra Engineering Share Price

Shares of HG Infra Engineering have delivered over 2% gains in the last three months. However, the shares of the company have declined over 9% in the year so far. In the long term, HG Infra Engineering shares have delivered over 18% returns in the last three years, and 35% in the last five years.