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    Ashoka Buildcon

    ASHOKA
    Construction·17 Nov 2025
    Management Summary

    Ashoka Buildcon reported a challenging Q2 FY26 with revenue degrowth on both standalone and consolidated bases, primarily due to extensive monsoon and intense competition. Despite this, standalone PAT saw significant growth. The company maintained a strong order book and continued its asset monetization strategy, selling 5 HAM SPVs and outlining plans for further divestments to achieve near-zero standalone debt by year-end. Management expressed optimism for H2 FY26 with accelerated order awards and execution.

    Highlights

    8
    • Standalone total income for Q2 FY26 stood at INR 1,303 crores, a degrowth of 11% YoY.

    • Standalone PAT for Q2 FY26 increased by 284% YoY to INR 139 crores.

    • Consolidated total income for Q2 FY26 was INR 1,908 crores, a degrowth of 25% YoY.

    • Consolidated PAT for Q2 FY26 stood at INR 91 crores.

    • Order book as of September 30, 2025, was INR 14,888 crores, with Roads & Railways comprising 65.8%.

    • Secured two new railway contracts totaling INR 1,039.3 crores in Q2 FY26.

    • Successfully completed the sale of 5 HAM SPVs for an aggregate consideration of INR 1,146 crores.

    • Targeting INR 6,000-7,000 crores in incremental order inflow for H2 FY26.

    What Changed2

    vs Q3 FY26

    Guidance items8 → 5 (-3)Risks discussed3 → 5 (+2)

    Key financials

    Single quarter

    08 metrics
    1. 01Standalone Total Income₹1,303 Cr-11%YoY
    2. 02Standalone EBITDA₹160 Cr0%YoY
    3. 03Standalone EBITDA Margin12.3%
    4. 04Standalone PAT₹139 Cr+2.8%YoY
    5. 05Consolidated Total Income₹1,908 Cr-25%YoY

    Segment breakdown

    Road EPC
    54.9% Revenue Contribution
    Road HAM
    11.8% Revenue Contribution
    Power T&D
    15.3% Revenue Contribution
    Railway
    6% Revenue Contribution
    Building EPC and Others
    12% Revenue Contribution
    List

    Order Book

    high confidence

    Total Value

    ₹ 14,888 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 1,039.3 crores

    Composition

    Mix3 contract types
    • Roads and Railways65.8%
    • Power T&D31.0%
    • EPC Buildings3.1%

    Share of order book by contract type

    Pipeline

    other

    Bidding pipeline of projects lined up

    Cancellations / Deferrals

    • cancelled:Kolshet Project cancelled by MMRDA due to change of scope

    "Primary focus remains on maintaining a sustainable EPC business across roads, highways, railways, power transmission, and buildings."

    Source:
    Prepared remarks

    Capital allocation

    9
    high confidence
    CategoryHeadline
    Capex

    ₹10 crores this quarter · ₹100 crores (FY26) planned

    Debt

    Gross ₹4,910 crores

    M&A

    5 HAM SPVs

    divestment · closed · Consideration ₹NaN (cash)

    M&A

    Ashoka Concessions Limited (ACDs)

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    Jaora-Nayagaon Toll Road Company Limited

    acquisition · closed · Consideration ₹NaN (cash)

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Revenue Growth
    10% to 15%
    Medium
    Profitability
    EBITDA Margin
    10% to 11%
    Medium
    Order Inflow
    Incremental Order Inflow
    INR 6,000 crores to INR 7,000 crores
    High
    Capex
    Total Capex Spend
    INR 100 crores
    High
    Debt
    Standalone Debt Level
    near zero
    High

    Completion of 5 BOT projects transition

    by November 30, 2025
    CurrentIn process
    TargetConcluded

    Why it matters

    This is a key asset monetization event expected to conclude shortly after the call, impacting cash flow and debt.

    So, for the 5 BOT projects, we expect to conclude the transition by 30th November.

    How to verify

    capital_allocation.m_and_a[target='5 BOT subsidiaries'].status

    Risks & concerns

    5
    RiskSeverity

    Execution delays due to monsoon and intense competition

    Execution in Q2 FY26 was muted due to extensive monsoon and intense competition, impacting revenue growth.Management acknowledged

    medium

    Land acquisition delays for projects

    Certain projects, particularly in Maharashtra, faced delays due to land acquisition issues.Management acknowledged

    medium

    Project cancellation due to scope change

    One MMRDA project (INR 279 crores) was cancelled due to a major change in scope, leading to rebidding.Management acknowledged

    low

    Delay in appointed date for HAM projects

    The Guskara HAM project's appointed date is delayed, potentially to March, due to land acquisition needing to reach 80%.Management acknowledged

    medium

    Contingent consideration for BOT monetization being lower than expected

    The balance of BOT monetization (originally INR 700 crores) may be slightly less, around INR 500 crores, due to NHAI circular changes.Management acknowledged

    low

    Q&A highlights

    8

    “So, for the 5 BOT projects, we expect to conclude the transition by 30th November.”

    Clarifies the immediate timeline for a significant asset monetization event.

    asked by Trisha Rathi

    3 min read7 chapters

    Detailed Narrative

    01

    Industry Overview and Outlook

    The construction sector experienced muted execution in Q2 FY26 due to extensive monsoon and intense competition. Only 300 kilometers were awarded, while 1,600 kilometers were under construction. Despite this, the industry maintains a robust pipeline, with NHAI tightening contractor eligibilities, favoring larger players. The government plans a massive INR 11 lakh crore investment to expand the high-speed road network, aiming for 17,000 kilometers of access-controlled expressways by 2023. NHAI has signaled an acceleration in awarding for H2 FY26, identifying 124 projects worth INR 2 lakh crores (EPC cost) and INR 3.45 lakh crores (total capital cost), with 72% expected under the HAM model.

    02

    Q2 FY26 Financial Performance

    Ashoka Buildcon reported a standalone total income of INR 1,303 crores in Q2 FY26, an 11% year-on-year degrowth. Standalone EBITDA remained flat at INR 160 crores, with a margin of 12.3%, an improvement of 130 basis points. Standalone PAT surged by 284% to INR 139 crores. On a consolidated basis, total income was INR 1,908 crores, a 25% degrowth, with EBITDA at INR 642 crores (down 32%) and a margin of 33.6%. Consolidated PAT for the quarter was INR 91 crores. Revenue contribution for Q2 FY26 was led by Road EPC (54.9%), followed by Power T&D (15.3%) and Road HAM (11.8%).

    03

    Order Book and Inflow

    As of September 30, 2025, Ashoka Buildcon's order book stood at INR 14,888 crores. This excludes a new order of INR 468 crores received post-September 30 and a cancelled Kolshet Project of INR 279 crores. During Q2 FY26, the company secured two significant railway contracts from North Western Railway totaling INR 1,039.3 crores. The order book composition is 65.8% Roads and Railways (INR 9,804 crores), 31.0% Power T&D (INR 4,623 crores), and 3.1% EPC Buildings (INR 462 crores). The company is targeting an incremental order inflow of INR 6,000-7,000 crores in H2 FY26, with a bidding pipeline of over INR 80,000 crores.

    04

    Asset Monetization and Capital Allocation

    Ashoka Buildcon successfully completed the sale of 5 HAM SPVs for INR 1,146 crores, reinforcing its focus on value unlocking. The company also increased its stake in Jaora-Nayagaon Toll Road Company Limited by 26% to 61.17% for INR 166.6 crores. Post-September 30, INR 882 crores was utilized from Ashoka Buildcon's cash balance to acquire convertible debentures in Ashoka Concessions Limited. The company plans to monetize 4 more HAM assets by March end for approximately INR 800 crores and 2 by June 2026 end for INR 300 crores. Discussions are ongoing for the monetization of the Chennai ORR project, with a target to sign by March.

    05

    Project Execution and Delays

    Execution in H1 FY26 was impacted by an elongated monsoon season and delays in land acquisition, particularly for projects in Maharashtra. The appointed date for the Guskara HAM project is now targeted for December, but could shift to March if land acquisition (currently 30%) does not reach 80%. The MMRDA's Kolshet Project (INR 279 crores) was cancelled due to a significant change in scope and will be rebid. Other projects like Bankot and Gaimukh are progressing well, while Jaigad and Kolshet are expected to start once forest and mangrove clearances are obtained by December.

    06

    Debt Management and Deleveraging

    Consolidated debt as of September 30, 2025, stood at INR 4,910 crores, with standalone debt at INR 1,362 crores. The standalone debt comprises INR 83 crores of equipment finance, INR 300 crores of NCD, and INR 978 crores of working capital loans. Management expects substantial deleveraging in H2 FY26, driven by the realization of BOT project monetization proceeds. The target is to achieve near-zero standalone debt by year-end, supported by cash balances, with approximately INR 425 crores of outstanding instruments to be liquidated by April.

    07

    Working Capital Management

    The company observed an increase in working capital during the first half of the fiscal year. Management indicated that working capital levels are expected to largely remain consistent, with a potential improvement in the power segment by March end due to anticipated release of working capital from employers. This suggests a focused effort on optimizing working capital in specific operational areas.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.