New Delhi, Aug. 20 -- Road and infrastructure companies reported a mixed performance in the first quarter of FY27, with revenue growth remaining under pressure despite a sharp improvement in profitability, according to Axis Securities. The brokerage said companies under its road infrastructure coverage recorded a 3% year-on-year decline in revenue, compared with its expectation of 1% growth, largely due to slower project execution at HG Infra Engineering.

EBITDA rose 6% YoY, below Axis Securities' estimate of 9%, reflecting subdued sales volumes. However, PAT jumped 47% YoY, significantly outperforming the brokerage's 10% growth expectation, aided by exceptional items reported by PNC Infratech and KNR Construction.

On the margins front,...