Target: ₹72
CMP: ₹40.83
The key message from , (IRB) (now a Ferrovial & GIC group company) Q2-FY26 tolling trends was it has improved overall toll growth, at 9 per cent YTD, despite the early arrival of monsoons as Aug 2025 tolls rose 12 per cent y-o-y. It was led by growth in tolls at its private Infrastructure Trust (InvIT) assets. Toll revenue from its flagship Mumbai–Pune e-way is up 5 per cent y-o-y FY26 YTD vs. sub-2.5 per cent over the same time in FY25, while other roads saw a 10 per cent rise in toll revenue.
After its IRB Public InvIT received approval from its minority shareholders to transform itself into a “high yield, growth annuity,” CCI also approved this with investment by a GIC-backed fund in the InvIT. The NHAI plans $30 billion in asset monetisation during Modi 3.0. IRB has shown growth in the new equity as it won a concession of assets worth $1.9 billion over FY23-24.
We see more to come as IRB aims to win projects in the National Monetisation Pipeline (MNP) funded by churning assets. IRB, India’s no.1 toll platform, has steam left from releveraging its equity, in our view. We maintain our ₹72 target price and O-PF rating.
Risks include lower traffic and toll leakage, project delays.