HG Infra Engineering: Prabhudas Lilladher Recommends Accumulate, Target Rs 724

• Prabhudas Lilladher recommends 'Accumulate' for HG Infra Engineering with a target price of Rs 724/share.
• Q3FY26 performance was subdued with revenue moderation (-4% YoY) due to execution delays, but EBITDA margins remained resilient at ~15.5%.
• Standalone debt increased to ~Rs15.5 billion (0.5x DER) due to elevated working capital and interim funding to solar SPVs, expected to ease post-commissioning.
• Management projects ~Rs70 billion revenue in FY27 (10–12% YoY growth) with margins at ~14–15%, targeting Rs100–120 billion in new orders.
• Order book stands at ~Rs136.2 billion (2.2x TTM revenue), diversifying into rail (20%) and renewables (15%), though 38% of orders face delays.