Ashoka Buildcon Limited — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

Ashoka Buildcon reported a mixed Q1 FY26, with consolidated PAT growing significantly despite a revenue degrowth, driven by margin expansion. Execution was impacted by early monsoon and project mobilization delays, leading to a muted start to the fiscal year. The company maintains a strong order book and pipeline, with a clear focus on asset monetization to reduce debt and fund future growth, targeting closure of key transactions by September end.

Highlights

  • Consolidated Total Income for Q1 FY26 stood at INR1,937 crores, reflecting a 22% degrowth YoY.

  • Consolidated EBITDA for Q1 FY26 was INR649 crores, up 3% YoY, with an EBITDA margin of 33.5% (830 bps improvement).

  • Consolidated PAT for Q1 FY26 increased 44% YoY to INR227 crores, achieving a PAT margin of 11.7% (540 bps improvement).

  • Standalone Total Income for Q1 FY26 was INR1,339 crores, a 30% degrowth YoY, with PAT down 25% to INR31 crores.

  • Order book as of June 30, 2025, stood at INR15,886 crores, with Roads & Railways comprising 65.7% and Power T&D 31.4%.

  • Gross toll revenue from the BOT division grew 13% YoY to INR362 crores in Q1 FY26.

  • Asset monetization of 5 BOT and 5 HAM projects is targeted for closure by September 30, 2025, with expected proceeds of INR2,900 crores.

  • The company targets INR10,000-12,000 crores in order inflow and 10-12% revenue growth for FY26.

Key financials

  1. Consolidated Total Income ₹1,937 Cr -22%YoY
  2. Consolidated EBITDA ₹649 Cr +3%YoY
  3. Consolidated EBITDA Margin 33.5%
  4. Consolidated PAT ₹227 Cr +44%YoY
  5. Consolidated PAT Margin 11.7%
  6. Standalone Total Income ₹1,339 Cr -30%YoY
  7. Standalone EBITDA ₹151 Cr +4%YoY
  8. Standalone EBITDA Margin 11.3%
  9. Standalone PAT ₹31 Cr -25%YoY
  10. Standalone PAT Margin 2.3%
  11. Gross Toll Revenue (BOT) ₹362 Cr +13%YoY

What they filed

Q1 FY27: revenue down 20.5%, net profit down 44.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,489 2,388 2,694 1,887 1,851 −26%1,827 −23%1,954 −27%1,500 −21%
EBITDA905 639 777 599 585 −35%435 −32%258 −67%258 −57%
Net profit462 662 452 227 91 −80%2,111 +219%147 −67%127 −44%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Standalone Revenue Contribution Q1 FY26
    52.4% Road EPC11.6% Road HAM19.7% Power T&D6.7% Railways19.6% Building EPC and Others

Order book

high confidence

Total value

₹15,886 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹2,000 Cr

Execution

executable over 18 to 24 months' time

Composition

Mix 3 segments
  • Roads and Railway Projects 65.7%
  • Power T&D 31.4%
  • EPC Building Segment 2.9%

Share of order book by segment

Pipeline

L1 awaiting loa

Visibility in the pipeline of NHAI and MoRTH, and state governments (Gujarat, Bihar, UP)

Cancellations & deferrals

  • cancelled: Contract kept on hold by High Court, share of project off books, expected rebidding
The company expects to achieve INR10,000-12,000 crores in order inflow for the full year FY26, seeing large opportunities in NHAI, states, and railways, despite competition.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹23 Cr this quarter · ₹125 Cr (FY26) planned
    • Equity requirement for HAM projects (total outstanding) ₹230 Cr
    So capex for Q1 was around INR23 crores and we expect to do a capex of approximately INR125 crores for the whole year. So total capex outstanding is INR230 crores, which is largely for our large project, Bowaichandi Guskara, of which for '25-'26, the investment will be INR123 crores and INR55 crores each for '26-'27, '27-'28.
  • Debt Gross ₹6,826 Cr
    • Repayment Targeted debt reduction for standalone debt post monetization within a year ₹1,000 Cr
    Total consolidated debt as on 30th June 2025 stood at INR6,826 crores. The stand-alone debt is at INR1,652 crores, which comprises of INR95 crores of equipment loans, NCDs of INR300 crores and INR1,257 crores of working capital loan.
  • M&A 5 BOT projects (to Maple Infrastructure Trust) Divestment · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    Strategic priority, allows completion of pending condition precedent

    Expected to close by September 30, 2025. Revenues and debt of these projects will be off the balance sheet.

    On asset monetization, the proposed sale of entire shareholding in five subsidiaries of Ashok Concessions Limited to Maple Infrastructure Trust is progressing, though the time line has been extended. Both parties have mutually agreed to move the closure date to September 30, 2025... The first 5 BOT, we are expecting around INR2,800 crores to INR3,000 crores, roughly INR3,000 crores.
  • M&A 5 HAM projects (to Edelweiss run AMC Sekura) Divestment · Pending regulatory

    Strategic priority, allows completion of pending condition precedent

    Expected to close by September end. Revenues and debt of these projects will be off the balance sheet.

    On the HAM side, for the first 5 set of projects, we expect the closure to happen by somewhere last week August or initial couple of weeks of September. So again, by September end definitely, these 5 projects also, closing will happen.
  • M&A Macquarie SBI (exit) Divestment · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    Part of asset monetization strategy

    Macquarie SBI commitment of INR1,526 crores plus buying out the JN stake of INR150 crores will be achieved by September.

    Based on the receipts from these, the Macquarie SBI commitment of INR1,526 crores plus buying out the JN stake of INR150 crores will be achieved. So sir, we will be giving the exit to the SBI Macquarie by September itself, right? Yes, yes.
  • M&A 6 HAM projects (remaining) Divestment · Announced · Consideration ₹[object Object] (undisclosed)

    Part of asset monetization strategy

    4 projects by December, last 2 by June '26. Expected proceeds of INR600 crores by December-end and INR500 crores by March.

    Post that, there will be 6 more HAM projects to be monetized, which will happen as: 4 projects will happen by December and the last 2 projects will happen by June '26, where CODs are expected. So this is how the projects will be monetized and SBI Macquarie will be given exit to. ... And balance of the 6 projects by June of around INR1,000 crores. ... So sorry, sir, INR600 crores, second tranche by December and then another. By June, another INR500 crores.
  • Liquidity Liquidity disclosed Proceeds from asset monetization (INR1,200 crores from first tranche) will be largely utilized for initially reducing working capital debt.
    This will be largely utilized for initially reducing our working capital debt. And then future plans will be taken up post September.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 10-12%
    Yes. We're expecting around 10% growth. And this Q1, Q2 will be a little negative. So we'll have to catch up in Q3, Q4. Overall, we'll be around 10% to 12% up.

    — Satish Parakh

  • Q3 FY26 Revenue Revenue · Q3 FY26 · Medium confidence INR2,200-2,300 crores
    So we are very much confident of particularly Q4 will be crossing INR2,600 crores, INR2,700 crores, and INR2,200 crores, INR2,300 crores will be around Q3.

    — Satish Parakh

  • Q4 FY26 Revenue Revenue · Q4 FY26 · Medium confidence INR2,600-2,700 crores

    — Satish Parakh

Profitability

  • EBITDA Margin Profitability · next coming quarters · Medium confidence 9.5-10%
    So as we have given guidance, we expect that our margins of around 9.5% to 10% will continue in the next coming quarters and that should help keep the EBITDAs better.

    — Paresh Mehta

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · Medium confidence INR10,000-12,000 crores
    So, we will do around INR8,000 crores to INR12,000 crores in the whole year. I'm taking average INR10,000 crores.

    — Satish Parakh

Revenue Growth

  • FY27 Growth Rate Revenue Growth · FY27 · Low confidence higher growth rate
    Definitely, we'll be targeting for a higher growth rate for '26-'27.

    — Paresh Mehta

What to watch in Q2 FY26

Asset Monetization Closure (5 BOT & 5 HAM)

Q2 FY26 (by September 30, 2025)
Current Pending regulatory approvals and internal CPs
Target Closure by September 30, 2025

Why it matters

Crucial for deleveraging, improving liquidity, and funding future growth. Any further delays would be a significant concern.

Both parties have mutually agreed to move the closure date to September 30, 2025, to allow for the completion of pending condition precedent and this remains our strategic priority. We also expect to close 5 BOT and 5 HAM projects by September end.

Risks & concerns

  • Execution delays due to early monsoon

    medium

    Early monsoon impacted Q1 FY26 execution, leading to revenue degrowth.

    Management acknowledged

  • Project mobilization delays

    medium

    Several new orders are still in the mobilization stage, affecting Q1 turnover.

    Management acknowledged

  • Competition in bidding

    medium

    Competition remains high in the market, with 20-25 players in most projects, impacting success ratio.

    Management acknowledged

  • Uncertainty in greenfield BOT project success

    low

    Success of BOT on greenfield expressways is yet to be seen, requiring careful monitoring.

    Management acknowledged

  • Asset monetization timeline extensions

    low

    Closure date for 5 BOT projects extended to September 30, 2025, to complete pending conditions, though internal CPs are under control.

    Management acknowledged

Q&A highlights

6 direct
Muted Q1 execution and FY26 growth expectations Direct
Basically, there has been 2, 3 reasons. One of the major reasons is early monsoon. Second is the orders which we got in last season are still in mobilization stage. So out of 7 projects which we got only 3 have moved ahead and 4 are yet to start. So these are really reflected in the Q1 turnover degrowth. ... Going ahead now Q3, Q4 we'll be catching up. Q2 again we'll be a little similar pattern. But Q3, Q4, we'll be catching up and all these projects will be at full swing.

Explains the reasons for the revenue degrowth in Q1 and provides a roadmap for execution recovery in later quarters, setting expectations for full-year growth.

Asked by Mohit Kumar

NHAI bidding pipeline and project mix Partial
Yes. Tender pipeline-wise, like currently, we have around INR75,000 crores is the visibility in the pipeline of NHAI and MoRTH, which they want to ramp up to around INR1.5 lakh crores to INR1.8 lakh crores. And which NHAI has consistently shown if that they announce, at least 80%, 90% of the announcement is always achieved. So we are very hopeful, but only the mix of projects will be EPC, HAM and BOT. So we'll have to see how the really outcome comes in BOT. Otherwise, HAM and EPC are very much proven. BOT on greenfield expressways, how successful it will be that we need to see.

Provides insight into the bidding opportunities and management's cautious view on greenfield BOT projects, highlighting potential shifts in project mix.

Asked by Mohit Kumar

Asset monetization timeline and proceeds Direct
So on the monetization, as we have already disclosed, we have two transactions in pipeline. One is for the 5 BOT projects, which we are selling to Maple inbuilt run by CDPQ and the HAM 11 projects, which we are selling to Edelweiss run AMC Sekura. On the 5 BOT projects, as already indicated in Mr. Parakh's speech, we expect to close it by 30th September. ... Based on the receipts from these, the Macquarie SBI commitment of INR1,526 crores plus buying out the JN stake of INR150 crores will be achieved. ... The first 5 BOT, we are expecting around INR2,800 crores to INR3,000 crores, roughly INR3,000 crores. And balance of the 6 projects by June of around INR1,000 crores.

Crucial for understanding the company's deleveraging strategy and future capital availability, with specific timelines and expected proceeds for various asset sales.

Asked by Bhavin Modi

High Court contract cancellation and rebidding Direct
Yes. So our share of this project was INR850 crores, which is off our books now. ... That anyway has been withdrawn by the -- it has been withdrawn by the... Yes, we expect rebidding. So it is as of now, it is withdrawn. So this is not part of our order book anywhere now.

Clarifies the status of a significant contract (INR850 crores share) that was cancelled, impacting the order book, but also indicates potential for rebidding.

Asked by Mehul Gandhi

Sustainability of operating margins Direct
So as we have given guidance, we expect that our margins of around 9.5% to 10% will continue in the next coming quarters and that should help keep the EBITDAs better. These are based on the new projects, the old projects, most of them have got over. New projects will keep on giving this kind of margins.

Addresses concerns about margin volatility and provides confidence in the sustainability of current margin levels due to the nature of new projects.

Asked by Mehul Gandhi

Debt reduction plan post asset monetization Direct
So today, we are almost at INR1,600 crores of debt on the stand-alone. On the project side, it is approximately INR5,200 crores, of which hardly INR275 crores will continue on the books for Jarora Nayagaon and Chennai ORR. But otherwise, most of the debt will go along with the projects. So we'll be basically addressing the INR1,650 crores of stand-alone debt, which will be brought to the typical levels of around, say, INR500 crores to INR600 crores max. ... Yes, substantially lower than that, approximately in the range of, touch INR1,000 crores, including project loan.

Provides a detailed outlook on the company's debt reduction strategy, specifying targets for both standalone and project-level debt post asset sales, which is critical for financial health.

Asked by Mehul Gandhi

Intelligent Traffic Management System revenue model Direct
Yes. So this is intelligent traffic management, where we will be paid on capturing of incidents. So incidents could be over speeding, it could be seat belt, it could be helmet, lane cutting, anything. So these are all cameras, which will be put up on the highways and revenue will be from the incident management. For incident we will be paid. ... Yes. So these projects are basically kind of PPP projects where 18% IRR is capped. So above 18% IRR, we'll be sharing with the government.

Explains the business model for a new contract, clarifying the revenue generation mechanism and profit-sharing arrangement, which is new information.

Asked by Amit Vora

3 min read 6 chapters

Detailed narrative

Industry Overview and Outlook

The start of FY26 saw renewed momentum in India's infrastructure sector, particularly roads and highways. NHAI plans to build 124 highway and expressway projects, spanning 6,400 km with an investment outlay of INR1.5 lakh crores, leveraging HAM, BOT, and EPC models. Traffic and toll collections showed strong growth, with toll revenue surging 20% YoY to INR20,682 crores in Q1, driven by 1.17 billion vehicle trips. The power transmission and distribution sector also continues to expand, offering consistent EPC opportunities.

Q1 FY26 Financial Performance

Ashoka Buildcon reported a consolidated total income of INR1,937 crores for Q1 FY26, a 22% degrowth YoY from INR2,495 crores in Q1 FY25. Despite this, consolidated EBITDA grew 3% YoY to INR649 crores, with margins expanding by 830 bps to 33.5%. Consolidated PAT saw a significant 44% YoY increase to INR227 crores, achieving a PAT margin of 11.7%. Standalone total income was INR1,339 crores (down 30% YoY), with EBITDA at INR151 crores (up 4% YoY) and PAT at INR31 crores (down 25% YoY).

Order Book and Project Wins

The company's order book stood at INR15,886 crores as of June 30, 2025. Roads and railway projects constitute 65.7% (INR10,433 crores), with Power T&D at 31.4% (INR4,995 crores). New orders secured include a USD 67 million East Bank-East Coast Road Linkage Project in Guyana, an INR568 crores railway EPC project from Central Railway, and INR1,387 crores for intelligent traffic management systems in Maharashtra. The company aims for INR10,000-12,000 crores in order inflow for FY26.

Asset Monetization Strategy

Ashoka Buildcon is actively pursuing asset monetization to deleverage and fund future growth. The sale of 5 BOT projects to Maple Infrastructure Trust and 5 HAM projects to Edelweiss run AMC Sekura is targeted for closure by September 30, 2025. These transactions are expected to yield approximately INR2,900 crores, with INR1,600-1,700 crores allocated for the Macquarie SBI exit. Remaining 6 HAM projects are slated for monetization by December 2025 and June 2026, expected to generate INR1,100 crores. Discussions are also ongoing for Jarora Nayagaon and Chennai ORR projects.

Execution Challenges and Outlook

Q1 FY26 execution was muted, with revenue degrowth attributed to early monsoon and several new orders being in the mobilization stage. Only 3 out of 7 new projects have commenced. Management expects Q2 to follow a similar pattern but anticipates a significant ramp-up in Q3 and Q4, with Q3 revenue projected at INR2,200-2,300 crores and Q4 at INR2,600-2,700 crores. The company maintains its FY26 revenue growth guidance of 10-12% and EBITDA margin guidance of 9.5-10%.

Debt Management and Capital Expenditure

Total consolidated debt as of June 30, 2025, was INR6,826 crores, with standalone debt at INR1,652 crores. Post asset monetization, the company aims to reduce standalone debt by INR1,000 crores, bringing it down to INR500-600 crores. Project-level debt is also expected to significantly decrease, with only INR300 crores remaining on books after all 5 BOT and 11 HAM projects are monetized. Q1 FY26 capex was INR23 crores, with a full-year plan of INR125 crores, and INR230 crores in outstanding equity requirements for HAM projects.

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