{"id":297164,"date":"2026-10-09T10:35:28","date_gmt":"2026-10-09T05:05:28","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=297164"},"modified":"2026-10-09T10:35:28","modified_gmt":"2026-10-09T05:05:28","slug":"highway-and-tunnel-construction-stocks-strong-roadmap","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/","title":{"rendered":"3 Highway and Tunnel Construction Stocks With a Strong Future Roadmap: Patel Engineering, KNR Constructions and H.G. Infra Engineering"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Patel Engineering Rs 24.88, P\/E 8.61. KNR Constructions Rs 111.61, P\/E 7.97. HG Infra Rs 403.00, P\/E 14.10. Closing prices of 8 Oct 2026.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Highway and tunnel construction stocks with the clearest long-term roadmaps today include Patel Engineering in tunnels, dams and hydropower, KNR Constructions in roads and irrigation projects and HG Infra in highways and power transmission. FY26 revenue growth was 0.2% at Patel Engineering, -45.5% at KNR Constructions and 3.8% at HG Infra. P\/E stands at 8.61 for Patel Engineering (industry 23.12), 7.97 for KNR Constructions (industry 23.12) and 14.10 for HG Infra (industry 23.12). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company&#8217;s risks need equal attention.<\/p>\n<\/p><\/div>\n<p>Highway and tunnel construction stocks give investors exposure to the contractors that build roads, dams and hydropower for government agencies. Revenue follows order awards and execution speed, so the order book, margins and working capital all matter.<\/p>\n<p>Readers comparing highway and tunnel construction stocks should weigh growth, margins, cash flow and valuation together instead of leaning on any single number.<\/p>\n<p>This list covers three infrastructure construction stocks: Patel Engineering for tunnels, dams and hydropower, KNR Constructions for roads and irrigation projects and H.G. Infra Engineering for highways and power transmission. Every figure comes from the latest reported financials and the 8 October 2026 market close. Companies without complete current figures were left out.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=highway-and-tunnel-construction-stocks-strong-roadmap\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#What_Are_Highway_and_Tunnel_Construction_Stocks\" title=\"What Are Highway and Tunnel Construction Stocks?\">What Are Highway and Tunnel Construction Stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Highway_and_Tunnel_Construction_Stocks_at_a_Glance\" title=\"Highway and Tunnel Construction Stocks at a Glance\">Highway and Tunnel Construction Stocks at a Glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Why_Do_Highway_and_Tunnel_Construction_Stocks_Have_a_Strong_Roadmap_in_India\" title=\"Why Do Highway and Tunnel Construction Stocks Have a Strong Roadmap in India?\">Why Do Highway and Tunnel Construction Stocks Have a Strong Roadmap in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Patel_Engineering_Tunnels_Dams_and_Hydropower_Anchor_the_Roadmap\" title=\"Patel Engineering: Tunnels, Dams and Hydropower Anchor the Roadmap\">Patel Engineering: Tunnels, Dams and Hydropower Anchor the Roadmap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#KNR_Constructions_Roads_and_Irrigation_Projects_Drive_the_Pipeline\" title=\"KNR Constructions: Roads and Irrigation Projects Drive the Pipeline\">KNR Constructions: Roads and Irrigation Projects Drive the Pipeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#HG_Infra_Engineering_Highway_Projects_and_Transmission_Work_Build_the_Next_Leg\" title=\"H.G. Infra Engineering: Highway Projects and Transmission Work Build the Next Leg\">H.G. Infra Engineering: Highway Projects and Transmission Work Build the Next Leg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Best_Highway_and_Tunnel_Construction_Stocks_in_India_Patel_Engineering_vs_KNR_Constructions_vs_HG_Infra_on_Key_Financials\" title=\"Best Highway and Tunnel Construction Stocks in India: Patel Engineering vs KNR Constructions vs HG Infra on Key Financials\">Best Highway and Tunnel Construction Stocks in India: Patel Engineering vs KNR Constructions vs HG Infra on Key Financials<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#How_to_Evaluate_Road_and_Tunnel_Contractor_Stocks_to_Buy_Before_You_Invest\" title=\"How to Evaluate Road and Tunnel Contractor Stocks to Buy Before You Invest\">How to Evaluate Road and Tunnel Contractor Stocks to Buy Before You Invest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Risks_to_Consider_Before_Investing_in_Highway_and_Tunnel_Construction_Stocks\" title=\"Risks to Consider Before Investing in Highway and Tunnel Construction Stocks\">Risks to Consider Before Investing in Highway and Tunnel Construction Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Final_Take_Which_Stock_Has_the_Strongest_Roadmap\" title=\"Final Take: Which Stock Has the Strongest Roadmap?\">Final Take: Which Stock Has the Strongest Roadmap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#FAQs_on_Highway_and_Tunnel_Construction_Stocks\" title=\"FAQs on Highway and Tunnel Construction Stocks\">FAQs on Highway and Tunnel Construction Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Which_are_the_best_highway_and_tunnel_construction_stocks_in_India_with_a_strong_roadmap\" title=\"Which are the best highway and tunnel construction stocks in India with a strong roadmap?\">Which are the best highway and tunnel construction stocks in India with a strong roadmap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Is_Patel_Engineering_a_good_stock_to_buy_now\" title=\"Is Patel Engineering a good stock to buy now?\">Is Patel Engineering a good stock to buy now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#What_is_the_PE_ratio_of_Patel_Engineering_KNR_Constructions_and_HG_Infra\" title=\"What is the P\/E ratio of Patel Engineering, KNR Constructions and HG Infra?\">What is the P\/E ratio of Patel Engineering, KNR Constructions and HG Infra?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Which_of_these_highway_and_tunnel_construction_stocks_has_the_highest_return_on_equity\" title=\"Which of these highway and tunnel construction stocks has the highest return on equity?\">Which of these highway and tunnel construction stocks has the highest return on equity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#What_are_the_risks_of_investing_in_highway_and_tunnel_construction_stocks\" title=\"What are the risks of investing in highway and tunnel construction stocks?\">What are the risks of investing in highway and tunnel construction stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#How_did_Patel_Engineering_KNR_Constructions_and_HG_Infra_perform_in_Q1_FY27\" title=\"How did Patel Engineering, KNR Constructions and HG Infra perform in Q1 FY27?\">How did Patel Engineering, KNR Constructions and HG Infra perform in Q1 FY27?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#Do_highway_and_tunnel_construction_stocks_pay_dividends\" title=\"Do highway and tunnel construction stocks pay dividends?\">Do highway and tunnel construction stocks pay dividends?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/highway-and-tunnel-construction-stocks-strong-roadmap\/#How_can_I_invest_in_highway_and_tunnel_construction_stocks_in_India\" title=\"How can I invest in highway and tunnel construction stocks in India?\">How can I invest in highway and tunnel construction stocks in India?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Highway_and_Tunnel_Construction_Stocks\"><\/span><strong>What Are Highway and Tunnel Construction Stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Highway and tunnel construction stocks are shares of companies that build roads, tunnels, dams and irrigation works under contracts from public agencies. Results depend on order inflow, execution pace, input costs and operating margin, so order books and payment cycles separate the stronger names.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Highway_and_Tunnel_Construction_Stocks_at_a_Glance\"><\/span><strong>Highway and Tunnel Construction Stocks at a Glance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table compares size, valuation, return on equity and debt for the three highway and tunnel construction stocks as of the 8 Oct 2026 close.<\/p>\n<div style=\"overflow-x:auto;\">\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Company<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">CMP (Rs)<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Market Cap (Rs Cr)<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">P\/E<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Industry P\/E<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">ROE<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Debt to Equity<\/th>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/pateleng\/patel-engineering-ltd-share-price-today\">Patel Engineering<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">24.88<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2,467<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">8.61<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">23.12<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">9.07%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.27<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/knrcon\/knr-construction-ltd-share-price-today\">KNR Constructions<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">111.61<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3,143<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">7.97<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">23.12<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">8.79%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.49<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\"><a href=\"https:\/\/univest.in\/stocks\/hginfra\/hg-infra-engineering-ltd-share-price-today\">H.G. Infra Engineering<\/a><\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">403.00<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2,623<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">14.10<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">23.12<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">9.10%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">1.54<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>Among infrastructure contractor stocks, all three trade at a discount to their industry P\/E multiples.<\/p>\n<p>Valuation matters here because highway and tunnel construction stocks can look attractive on growth and still look expensive on earnings.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Do_Highway_and_Tunnel_Construction_Stocks_Have_a_Strong_Roadmap_in_India\"><\/span><strong>Why Do Highway and Tunnel Construction Stocks Have a Strong Roadmap in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Highway and tunnel construction stocks have a strong roadmap in India because road and water spending is high, hydropower and tunnel projects are expanding in the hills and contractors with strong balance sheets win larger packages. Three drivers stand out.<\/p>\n<ul>\n<li><strong>Public capital spending:<\/strong> Highway, irrigation and water budgets keep tenders flowing.<\/li>\n<li><strong>Hydropower and tunnels:<\/strong> Complex projects favour experienced specialist builders.<\/li>\n<li><strong>Wider project mix:<\/strong> Transmission and irrigation work diversifies beyond roads.<\/li>\n<\/ul>\n<p>Together these drivers explain why highway and tunnel construction stocks keep drawing investor attention.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Patel_Engineering_Tunnels_Dams_and_Hydropower_Anchor_the_Roadmap\"><\/span><strong>Patel Engineering: Tunnels, Dams and Hydropower Anchor the Roadmap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Patel Engineering&#8217;s roadmap rests on tunnels, dams, hydropower and irrigation projects, with government spending on water and hydropower supporting the order book.<\/p>\n<p>Revenue grew from Rs 3,496.51 crore in FY22 to Rs 5,268.50 crore in FY26, a 50.7% rise, and FY26 revenue was 0.2% higher than FY25. FY26 net profit rose 14.3% to Rs 269.92 crore. Over four years, net profit rose from Rs 68.88 crore in FY22 to Rs 269.92 crore. In Q1 FY27, revenue grew 2.7% to Rs 1,306.18 crore, and net profit rose 15.0% to Rs 91.99 crore. Operating margin was 16.47% in FY26 and 16.01% in Q1 FY27 against 16.53% a year earlier.<\/p>\n<p>Debt to equity is 0.27 and return on equity is 9.07%. FY26 operating cash flow was Rs 560.10 crore against capital expenditure of Rs 109.83 crore. At a P\/E of 8.61 against an industry P\/E of 23.12, the stock trades below its industry multiple.<\/p>\n<p>What to watch: Q1 FY27 operating margin was 16.01% against 16.47% for FY26, so margin stability is the figure to follow as volumes grow.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"KNR_Constructions_Roads_and_Irrigation_Projects_Drive_the_Pipeline\"><\/span><strong>KNR Constructions: Roads and Irrigation Projects Drive the Pipeline<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>KNR Constructions&#8217; roadmap rests on road, irrigation and urban infrastructure projects, with national highway and irrigation programmes supporting execution.<\/p>\n<p>Revenue grew from Rs 3,650.70 crore in FY22 to Rs 2,763.23 crore in FY26, a 24.3% fall, and FY26 revenue was 45.5% lower than FY25. FY26 net profit fell 56.4% to Rs 436.86 crore. Over four years, net profit rose from Rs 366.39 crore in FY22 to Rs 436.86 crore. In Q1 FY27, revenue declined 6.0% to Rs 599.95 crore, and net profit fell 39.3% to Rs 73.57 crore. Operating margin was 29.46% in FY26 and 37.69% in Q1 FY27 against 33.98% a year earlier.<\/p>\n<p>Debt to equity is 0.49 and return on equity is 8.79%. FY26 operating cash flow was negative at Rs 149.05 crore against capital expenditure of Rs 13.70 crore. KNR Constructions paid a dividend of Rs 0.25 per share for FY26, a yield of 0.22%. At a P\/E of 7.97 against an industry P\/E of 23.12, the stock trades below its industry multiple.<\/p>\n<p>What to watch: Q1 FY27 revenue of Rs 599.95 Cr was 6.0% lower than a year earlier, and Q1 FY27 net profit was 39.3% lower than a year earlier. Operating cash flow was negative in FY26.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"HG_Infra_Engineering_Highway_Projects_and_Transmission_Work_Build_the_Next_Leg\"><\/span><strong>H.G. Infra Engineering: Highway Projects and Transmission Work Build the Next Leg<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>HG Infra&#8217;s roadmap rests on road projects on engineering, procurement and construction and hybrid annuity models, along with power transmission work, and with highway awards and a widening project mix supporting the order book.<\/p>\n<p>Revenue grew from Rs 3,758.75 crore in FY22 to Rs 5,262.71 crore in FY26, a 40.0% rise, and FY26 revenue was 3.8% higher than FY25. FY26 net profit fell 34.7% to Rs 329.81 crore. Over four years, net profit fell from Rs 380.04 crore in FY22 to Rs 329.81 crore. In Q1 FY27, revenue declined 25.5% to Rs 1,106.06 crore, and the company reported a net loss of Rs 44.52 crore against a profit of Rs 99.26 crore a year earlier. Operating margin was 19.91% in FY26 and 14.74% in Q1 FY27 against 17.66% a year earlier.<\/p>\n<p>Debt to equity is 1.54 and return on equity is 9.10%. FY26 operating cash flow was Rs 249.71 crore against capital expenditure of Rs 954.05 crore. HG Infra paid a dividend of Rs 2 per share for FY26, a yield of 0.50%. At a P\/E of 14.10 against an industry P\/E of 23.12, the stock trades below its industry multiple.<\/p>\n<p>What to watch: The Q1 FY27 operating margin of 14.74% was below the 17.66% of a year earlier, and Q1 FY27 revenue of Rs 1,106.06 Cr was 25.5% lower than a year earlier.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Best_Highway_and_Tunnel_Construction_Stocks_in_India_Patel_Engineering_vs_KNR_Constructions_vs_HG_Infra_on_Key_Financials\"><\/span><strong>Best Highway and Tunnel Construction Stocks in India: Patel Engineering vs KNR Constructions vs HG Infra on Key Financials<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Among the best highway and tunnel construction stocks in India, Patel Engineering leads on Q1 FY27 revenue growth and FY26 net profit growth; KNR Constructions leads on FY26 operating margin and the lowest P\/E; HG Infra leads on FY26 revenue growth and return on equity. The table puts the numbers side by side.<\/p>\n<div style=\"overflow-x:auto;\">\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Metric<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">Patel Engineering<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">KNR Constructions<\/th>\n<th style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;background:#F0F4F8;\">HG Infra<\/th>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 revenue (Rs Cr)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">5,268.50<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2,763.23<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">5,262.71<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 revenue growth<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.2%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-45.5%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">3.8%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 net profit (Rs Cr)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">269.92<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">436.86<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">329.81<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 net profit growth<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">14.3%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-56.4%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-34.7%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 operating profit margin<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">16.47%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">29.46%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">19.91%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Q1 FY27 revenue growth (YoY)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">2.7%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-6.0%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-25.5%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Return on equity<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">9.07%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">8.79%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">9.10%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">P\/E ratio<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">8.61<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">7.97<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">14.10<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Debt to equity<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.27<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.49<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">1.54<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">Dividend yield<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.00%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.22%<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">0.50%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">FY26 operating cash flow (Rs Cr)<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">560.10<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">-149.05<\/td>\n<td style=\"border:1px solid #DDDDDD;padding:8px 10px;text-align:left;\">249.71<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>Contractor earnings follow order awards and execution pace, so full-year numbers and quarterly trends together give a better view.<\/p>\n<p>No single metric ranks highway and tunnel construction stocks, so the table works as a starting point for deeper research.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Evaluate_Road_and_Tunnel_Contractor_Stocks_to_Buy_Before_You_Invest\"><\/span><strong>How to Evaluate Road and Tunnel Contractor Stocks to Buy Before You Invest<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A short checklist keeps the research consistent when you screen highway and tunnel construction stocks and shortlist road and tunnel contractor stocks to buy.<\/p>\n<ol>\n<li>Compare each stock&#8217;s P\/E with its industry P\/E, which is 23.12 for all three here.<\/li>\n<li>Check receivables days and operating cash flow, because contractors fund work before payments arrive.<\/li>\n<li>Check whether revenue growth is turning into profit growth, not only sales.<\/li>\n<li>Read operating cash flow against capital expenditure to see how growth is funded.<\/li>\n<li>Watch debt to equity and interest cover before sizing a position.<\/li>\n<li>Spread exposure across companies and business lines instead of one demand cycle.<\/li>\n<\/ol>\n<p>This process works for any basket of highway and tunnel construction stocks, whatever the share price level.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Check the Univest Screener for live data on these highway and tunnel construction stocks<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_to_Consider_Before_Investing_in_Highway_and_Tunnel_Construction_Stocks\"><\/span><strong>Risks to Consider Before Investing in Highway and Tunnel Construction Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Every group of highway and tunnel construction stocks carries risks that sit beside the growth story.<\/p>\n<ul>\n<li><strong>Debt and cash flow:<\/strong> KNR Constructions had negative operating cash flow of Rs 149.05 Cr in FY26.<\/li>\n<li><strong>Quarterly profit:<\/strong> KNR Constructions&#8217; Q1 FY27 net profit was 39.3% lower than a year earlier.<\/li>\n<li><strong>Annual profit:<\/strong> KNR Constructions&#8217; FY26 net profit of Rs 436.86 Cr was lower than the Rs 1,001.87 Cr of FY25.<\/li>\n<li><strong>Order and payment risk:<\/strong> Government payment delays can lock up working capital.<\/li>\n<\/ul>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track Patel Engineering, KNR Constructions and HG Infra live.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Take_Which_Stock_Has_the_Strongest_Roadmap\"><\/span><strong>Final Take: Which Stock Has the Strongest Roadmap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>These three infrastructure contractor stocks cover tunnels, dams and hydropower, roads and irrigation, and highways with transmission work. Patel Engineering leads on Q1 FY27 revenue growth and FY26 net profit growth; KNR Constructions leads on FY26 operating margin and the lowest P\/E; HG Infra leads on FY26 revenue growth and return on equity.<\/p>\n<p>Used carefully, data on highway and tunnel construction stocks helps investors separate steady compounding from short bursts of growth.<\/p>\n<p>Across highway and tunnel construction stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the road and tunnel contractor stocks to buy discussed here.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Highway_and_Tunnel_Construction_Stocks\"><\/span><strong>FAQs on Highway and Tunnel Construction Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_are_the_best_highway_and_tunnel_construction_stocks_in_India_with_a_strong_roadmap\"><\/span><strong>Which are the best highway and tunnel construction stocks in India with a strong roadmap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Patel Engineering, KNR Constructions and H.G. Infra Engineering stand out for their roadmaps in tunnels, dams and hydropower, roads and irrigation, and highways with transmission work. FY26 revenue growth was 0.2% at Patel Engineering, -45.5% at KNR Constructions and 3.8% at HG Infra, and return on equity ranges from 8.79% to 9.10%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Patel_Engineering_a_good_stock_to_buy_now\"><\/span><strong>Is Patel Engineering a good stock to buy now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Patel Engineering has a debt to equity ratio of 0.27, a return on equity of 9.07% and a P\/E of 8.61 against an industry P\/E of 23.12. Valuation, order inflow and working capital move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_PE_ratio_of_Patel_Engineering_KNR_Constructions_and_HG_Infra\"><\/span><strong>What is the P\/E ratio of Patel Engineering, KNR Constructions and HG Infra?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The P\/E ratio is 8.61 for Patel Engineering (industry 23.12), 7.97 for KNR Constructions (industry 23.12) and 14.10 for HG Infra (industry 23.12). All of them trade below the industry multiple.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_of_these_highway_and_tunnel_construction_stocks_has_the_highest_return_on_equity\"><\/span><strong>Which of these highway and tunnel construction stocks has the highest return on equity?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> H.G. Infra Engineering has the highest return on equity at 9.10%, followed by Patel Engineering at 9.07% and KNR Constructions at 8.79%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_of_investing_in_highway_and_tunnel_construction_stocks\"><\/span><strong>What are the risks of investing in highway and tunnel construction stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The main risks are debt and cash flow, quarterly profit, annual profit and order and payment risk. KNR Constructions had negative operating cash flow of Rs 149.05 Cr in FY26.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_did_Patel_Engineering_KNR_Constructions_and_HG_Infra_perform_in_Q1_FY27\"><\/span><strong>How did Patel Engineering, KNR Constructions and HG Infra perform in Q1 FY27?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Patel Engineering reported revenue of Rs 1,306.18 crore, up 2.7% year on year, and net profit rose 15.0% to Rs 91.99 crore. KNR Constructions reported revenue of Rs 599.95 crore, down 6.0% year on year, and net profit fell 39.3% to Rs 73.57 crore. H.G. Infra Engineering reported revenue of Rs 1,106.06 crore, down 25.5% year on year, and a net loss of Rs 44.52 crore against a profit a year earlier.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_highway_and_tunnel_construction_stocks_pay_dividends\"><\/span><strong>Do highway and tunnel construction stocks pay dividends?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> KNR Constructions and HG Infra pay dividends. The dividend yield is 0.22% for KNR Constructions and 0.50% for HG Infra, based on dividends declared for FY26.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_can_I_invest_in_highway_and_tunnel_construction_stocks_in_India\"><\/span><strong>How can I invest in highway and tunnel construction stocks in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> You can buy highway and tunnel construction stocks through a demat and trading account on NSE or BSE after checking each company&#8217;s financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which are the best highway and tunnel construction stocks in India with a strong roadmap?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Patel Engineering, KNR Constructions and H.G. Infra Engineering stand out for their roadmaps in tunnels, dams and hydropower, roads and irrigation, and highways with transmission work. FY26 revenue growth was 0.2% at Patel Engineering, -45.5% at KNR Constructions and 3.8% at HG Infra, and return on equity ranges from 8.79% to 9.10%.\"}},{\"@type\":\"Question\",\"name\":\"Is Patel Engineering a good stock to buy now?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Patel Engineering has a debt to equity ratio of 0.27, a return on equity of 9.07% and a P\/E of 8.61 against an industry P\/E of 23.12. Valuation, order inflow and working capital move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.\"}},{\"@type\":\"Question\",\"name\":\"What is the P\/E ratio of Patel Engineering, KNR Constructions and HG Infra?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The P\/E ratio is 8.61 for Patel Engineering (industry 23.12), 7.97 for KNR Constructions (industry 23.12) and 14.10 for HG Infra (industry 23.12). All of them trade below the industry multiple.\"}},{\"@type\":\"Question\",\"name\":\"Which of these highway and tunnel construction stocks has the highest return on equity?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"H.G. Infra Engineering has the highest return on equity at 9.10%, followed by Patel Engineering at 9.07% and KNR Constructions at 8.79%.\"}},{\"@type\":\"Question\",\"name\":\"What are the risks of investing in highway and tunnel construction stocks?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The main risks are debt and cash flow, quarterly profit, annual profit and order and payment risk. 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The dividend yield is 0.22% for KNR Constructions and 0.50% for HG Infra, based on dividends declared for FY26.\"}},{\"@type\":\"Question\",\"name\":\"How can I invest in highway and tunnel construction stocks in India?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You can buy highway and tunnel construction stocks through a demat and trading account on NSE or BSE after checking each company's financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Patel Engineering, KNR Constructions and H.G. Infra Engineering compared on growth, margins, debt and valuation, with the roadmap and risks investors should track.<\/p>\n","protected":false},"author":29,"featured_media":297160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[10533,10530,7142,10532,10531],"class_list":["post-297164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-stocks","tag-h-g-infra-engineering","tag-highway-and-tunnel-construction-stocks","tag-knr-constructions","tag-patel-engineering","tag-road-and-tunnel-contractor-stocks-to-buy"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["297160"],"rank_math_title":["Highway and Tunnel Construction Stocks: Top 3 Roadmap Picks"],"rank_math_description":["Highway and tunnel construction stocks with a strong roadmap: Patel Engineering, KNR Constructions and HG Infra compared on growth, valuation and risks."],"rank_math_focus_keyword":["highway and tunnel construction stocks"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/3-highway-and-tunnel-construction-stocks-with-a-strong-future-roadmap-patel.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/297164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=297164"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/297164\/revisions"}],"predecessor-version":[{"id":297165,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/297164\/revisions\/297165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/297160"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=297164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=297164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=297164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}