Passengers also came back to Highway Infrastructure Ltd as the company won a contract from the National Highway Authority of India (NHAI), which is not a market that has been under heavy selling pressure for a long time.
The shares were up around 4.30% (about ₹46.22) at ₹45.50 each after starting 2.34% higher at ₹45.50 and reached an intraday high of ₹46.90, up 5.49%.
The sharp rise came after NHAI issued a Letter of Acceptance (LoA) worth ₹80.17 crore to Highway Infrastructure for user fee collection at the Palayam Fee Plaza in Tamil Nadu.
₹80.17 crore NHAI contract
According to the company’s regulatory filing, NHAI issued the Letter of Acceptance on August 17, 2026, for a contract valued at ₹80,16,99,930.
Under the agreement, Highway Infrastructure will be the user fee collection agency at Palayam Fee Plaza on NH-44. The toll plaza is located at Km 154+500 and covers the Krishnagiri-to-Thumbipadi section between Km 94+000 and Km 180+000.
The contract was awarded through an e-quotation and e-tender process and will be executed over a period of 90 days.
The scope is not limited to toll collection. Highway Infrastructure will also be responsible for the upkeep and maintenance of adjacent toilet blocks and the replenishment of consumable items.
The contract has been awarded by NHAI, a domestic entity.
Stock has crashed
But Highway Infrastructure is in a much lower position than it was one year ago, with the stock down 60 percent.
The company's shares have fallen extremely hard in the last 12 months. The stock has fallen 60% in a year (Figure), and the year-to-date decline has also been significant.
The sharp correction means that the new NHAI order is actually a positive thing for the company, but the stock's longer-term performance is under pressure.
At 10:07 a.m. at the close on Tuesday, the stock was up 5.49% to ₹46.90, and the NSE Nifty 50 was down 0.34%.
The stock's relative strength index (RSI) was at 38.93, and the price momentum is still not strong despite Tuesday's recovery.
The order book provides revenue visibility
Highway Infrastructure highlighted its order book as an important source of future revenue visibility.
On June 30, 2026, the total order book of the company stood at approximately ₹789 crore. Tollway collection projects were around ₹282 crore while EPC infrastructure accounted for about ₹507 crore.
The company has also been able to stay afloat on new business.
In July 2026, Highway Infrastructure won a new tollway collection contract worth ₹28.7 crore. Meanwhile, its EPC division is looking for opportunities and has an H1/L1 pipeline of approximately ₹64 crore.
The latest NHAI contract adds another project to the company’s tollway collection portfolio and could support business activity over the contract period.
Why did the stock rise?
The immediate trigger for Tuesday's rally was the announcement of the ₹80.17 crore NHAI contract. Investors tend to view large orders positively as they can increase revenue visibility and expand a company’s project pipeline.
For Highway Infrastructure, this order is particularly relevant because tollway collection is already a major component of its order book.
Investors should also take into account the heavy stock decline in the past year. A new order does not necessarily translate directly into equivalent profits, as project costs, operating expenses, execution requirements, and other financial factors can affect the final earnings contribution.
The company's future performance will therefore depend on getting new contracts but also the execution of its plan and delivering on its order book so as to generate stable revenue and profitability.
Key numbers at a glance
- NHAI contract value: ₹80.17 crore.
- Project: Palayam Fee Plaza, Tamil Nadu.
- Contract issued: August 17, 2026.
- Contract period: 90 days.
- Order book as of June 30, 2026: ₹789 crore.
- Tollway collection order book: ₹282 crore.
- EPC infrastructure order book: ₹507 crore.
- July 2026 new tollway contract: ₹28.7 crore.
- H1/L1 EPC pipeline: Around ₹64 crore.
- Tuesday intraday high: ₹46.90.
- RSI: 38.93
The new contract gives Highway Infrastructure another opportunity to bolster its tollway operations as its stock stands at a far cry from its previous level from a year ago.
Comments
Please to leave a comment on this article.