Shares of Highway Infrastructure Ltd slid 1.48%, closing at ₹42.55 on the BSE after it announced a ₹220.66‑crore contract to collect user fees and operate toll plazas on the Gorakhpur Link Expressway. The first‑year consideration of ₹105.08 crore is set to rise by 10% in year two.
The two‑year agreement, signed on 30 September, also mandates the deployment of four patrol‑cum‑safety vehicles, each manned by dedicated personnel. HIL’s filing highlighted that the contract is a domestic award, with no promoter or promoter‑group stake in the Uttar Pradesh Expressways Industrial Development Authority.
Earlier this year, HIL secured a ₹155‑crore NHAI order for Gujarat fee‑plaza projects, a deal that saw its shares surge 7%. The new contract, while smaller in face value, offers a steadier revenue stream given the guaranteed escalation clause and operational responsibilities.
Analysts note that toll‑collection contracts in India are becoming increasingly lucrative as the government pushes for autonomous toll operations. HIL’s move aligns with that trend, potentially positioning the firm for a 5‑year solid revenue run from the Gorakhpur corridor.
Looking ahead, the company will begin execution immediately, with the first‑year revenue expected mid‑2027. Investors will be watching for the actual collection figures and any operational cost overruns that could affect the projected gross margin.