Whalesbook
Highway Infrastructure Limited (HIL) has secured a new contract valued at approximately ₹15.64 crore for operating the Katiyara Fee Plaza in Bihar. The agreement, signed on March 20, 2026, involves user fee collection and maintenance of adjacent toilet blocks over a 90-day period. The company is set to take over operations on April 5, 2026.
Contract Details
The contract value stands at ₹15,63,99,930, approximately ₹15.64 crore. This agreement reinforces Highway Infrastructure Limited's role in toll operations. It adds a new revenue stream and operational experience within Bihar, a state with developing infrastructure projects. The short duration implies a focus on immediate revenue generation.
About Highway Infrastructure
Established in 1995 and based in Indore, Highway Infrastructure Limited is an established player in India's infrastructure sector, focusing on tollway collection, EPC projects, and real estate development. The company, which listed in August 2025, operates toll projects across 11 states and one Union Territory.
In recent times, HIL has been actively winning contracts, including a ₹328.78 crore deal for Kaza Fee Plaza in Andhra Pradesh and a ₹154.60 crore contract for toll plazas on the Vadodara-Mumbai Expressway. These wins highlight the company's growing footprint in managing national highway tolling operations and its adoption of technologies like ANPR and RFID for efficiency. Its revenue for FY25 stood at ₹504 crore.
Potential Challenges
The 90-day contract term poses operational challenges, limiting long-term strategic planning and the potential for optimal setup and recoupment within the timeframe. While this contract is in Bihar, past analysis had noted a geographic concentration risk in HIL's EPC business in Madhya Pradesh. Additionally, HIL faces an elongated working capital cycle due to its reliance on public sector project awards.
Competitive Landscape
Highway Infrastructure Limited operates in a competitive landscape alongside larger entities like IRB Infrastructure Developers, which recently reported 12% YoY toll revenue growth to ₹753.80 crore in December 2025. Ashoka Buildcon also saw 12% growth in toll collections in FY24. While HIL's new contract adds to its revenue, it is significantly smaller in scale compared to the multi-thousand crore asset bases and revenues of major players.
What Investors Should Watch
The contract provides a defined, short-term revenue stream and adds another fee plaza to HIL's operational portfolio, enhancing its experience. The award signifies HIL's engagement with infrastructure projects in Bihar. Investors will monitor the successful takeover and commencement of toll collection from April 5, 2026, and track the actual revenue generated during the 90-day period. They will also watch for further contract announcements by HIL and how this short-term contract contributes to the company's overall financial performance.