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What is the story about?
IRB infra has not seen any major impact of the West Asia war and has not experienced any payment delays so far from government agencies, its management told CNBC-TV18 exclusively, on Monday, April 6.
In response to a questionnaire sent by CNBC-TV18, the management said that its portfolio comprises largely of domestic road assets and therefore, it has not seen any direct invocation of Force Majeure clauses linked to the ongoing war in West Asia.
"Our business is largely driven by toll revenue, where we have witnessed unprecedented growth, and this momentum continues. As a result, our cash flows remain resilient and are not directly impacted by such payment cycle issues," the management said in its e-mailed response.
IRB Infra also said they do not undertake Engineering, Procurement and Construction (EPC) contracts, whether for the NHAI or for state governments, such as Maharashtra and therefore, they do not have any first hand visibility on payment delays or cash flow stress seen at the contractor level.
The war in Iran has led to a surge in crude oil prices and therefore, resulted in an increase for other crude derivatives as well, which are used as input components across sectors.
"The impact varies depending on the nature of the contract. Based on our understanding, EPC contracts typically have limited or no pass-through mechanisms for sharp increases in input costs, which may put pressure on contractor margins," the management said.
Nearly 95% of IRB Infra's value comes from operational assets and within the road asset business, tariff revisions are linked to inflation, which provides a hedge and thereby protects returns.
IRB Infra participates in NHAI's asset monetization programs, instead of bidding for EPC projects.
In comparison to the annual asset addition of ₹5,000 crore to ₹6,000 crore, IRB Infra has managed to bag projects worth ₹14,000 crore in financial year 2026.
Shares of IRB Infra are trading 5.5% lower on Monday at ₹20.61. The stock began trading ex-bonus last week and has declined over the last two trading sessions.
In response to a questionnaire sent by CNBC-TV18, the management said that its portfolio comprises largely of domestic road assets and therefore, it has not seen any direct invocation of Force Majeure clauses linked to the ongoing war in West Asia.
Business Model Resilience
"Our business is largely driven by toll revenue, where we have witnessed unprecedented growth, and this momentum continues. As a result, our cash flows remain resilient and are not directly impacted by such payment cycle issues," the management said in its e-mailed response.
Any Cash Flow Stress
IRB Infra also said they do not undertake Engineering, Procurement and Construction (EPC) contracts, whether for the NHAI or for state governments, such as Maharashtra and therefore, they do not have any first hand visibility on payment delays or cash flow stress seen at the contractor level.
Impact Of Rising Input Costs
The war in Iran has led to a surge in crude oil prices and therefore, resulted in an increase for other crude derivatives as well, which are used as input components across sectors.
"The impact varies depending on the nature of the contract. Based on our understanding, EPC contracts typically have limited or no pass-through mechanisms for sharp increases in input costs, which may put pressure on contractor margins," the management said.
Nearly 95% of IRB Infra's value comes from operational assets and within the road asset business, tariff revisions are linked to inflation, which provides a hedge and thereby protects returns.
Bidding Activity & Sector Outlook
IRB Infra participates in NHAI's asset monetization programs, instead of bidding for EPC projects.
In comparison to the annual asset addition of ₹5,000 crore to ₹6,000 crore, IRB Infra has managed to bag projects worth ₹14,000 crore in financial year 2026.
Shares of IRB Infra are trading 5.5% lower on Monday at ₹20.61. The stock began trading ex-bonus last week and has declined over the last two trading sessions.
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