Ashoka Buildcon Limited — Q2 FY26 earnings call

Call held 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

  • 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.

Key financials

  1. Standalone Total Income ₹1,303 Cr -11%YoY
  2. Standalone EBITDA ₹160 Cr 0%YoY
  3. Standalone EBITDA Margin 12.3%
  4. Standalone PAT ₹139 Cr +284%YoY
  5. Consolidated Total Income ₹1,908 Cr -25%YoY
  6. Consolidated EBITDA ₹642 Cr -32%YoY
  7. Consolidated EBITDA Margin 33.6%
  8. Consolidated PAT ₹91 Cr

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

  • 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

Order book

high confidence

Total value

₹14,888 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹1,039.3 Cr

Composition

Mix 3 contract types
  • Roads and Railways 65.8%
  • Power T&D 31%
  • EPC Buildings 3.1%

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

high confidence
  • Capex ₹10 Cr this quarter · ₹100 Cr (FY26) planned
    in H1, we have spent approximately INR 35 crores, of which INR 10 crores was in Quarter 2. And we expect to spend approximately INR 100 crores by the year-end, total.
  • Debt Gross ₹4,910 Cr
    Total consolidated debt as on 30th September 2025 stood at INR 4,910 crores. The standalone debt is at INR 1,362 crores, which comprises of INR 83 crores of equipment finance, INR 300 crores of NCD and INR 978 crores of working capital loan.
  • M&A 5 HAM SPVs Divestment · Closed · Consideration ₹[object Object] (cash)

    Unlocking value and strengthening balance sheet to reinvest in new growth opportunities.

    We successfully completed the sale of 5 HAM SPVs for an aggregate consideration of INR 1,146 crores to Epic Concesiones 2 Private Limited, Infrastructure Yield Trust, EAAA India Alternatives Limited.
  • M&A Ashoka Concessions Limited (ACDs) Acquisition · Closed · Consideration ₹[object Object] (cash)

    Utilized cash from Ashoka Buildcon's bank balance post 30th September.

    company acquired convertible debentures worth INR 882 crores in Ashoka Concessions Limited.
  • M&A Jaora-Nayagaon Toll Road Company Limited Acquisition · Closed · Consideration ₹[object Object] (cash)

    Underscoring confidence in the asset's long-term cash flow potential.

    Increased stake by 26% to 61.17% through subsidiary Viva Highways Limited.

    Our subsidiary, Viva Highways Limited, increased its stake by 26% in Jaora-Nayagaon Toll Road Company Limited to 61.17% for a consideration of INR 166.6 crores
  • M&A Remaining 6 HAM projects Divestment · Announced · Consideration ₹[object Object] (cash)

    Further asset monetization.

    Expect to monetize 4 assets by March end (INR 800 crores) and 2 assets by June '26 end (INR 300 crores).

    We expect to monetize 4 of the assets by March end and 2 of the assets by June '26 end. Approximately INR 800 and INR 300 crores.
  • M&A BOT projects (contingent consideration) Divestment · Announced · Consideration ₹[object Object] (cash)

    Contingent consideration for BOT monetization may be around INR 500 crores, coming after 1-2 years.

    balance may not be INR 700 crores, maybe slightly lesser due to various changes in NHAI circular. So, could be around INR 500 crores, which will come maybe after 1 year or 2 years, based on extension of time given by NHAI for our toll extension claims with NHAI.
  • M&A Chennai ORR project Divestment · Pending regulatory
    So, we are discussing with a potential investor and he is in the process of due diligence. We expect to close out as early as possible by March, we should be able to sign something with them.
  • Liquidity Cash ₹1,826 Cr Consolidated cash largely project-based, with ~INR 900 crores from Ashoka Buildcon's bank balance used for Macquarie CCDs.
    this INR 1,826 crores is largely cash lying at our various BOT projects and substantial cash lying at Ashoka Buildcon in the event of the monetization of the 5 HAM projects. So, out of this, almost INR 900 crores of cash lying at Ashoka Buildcon's bank balance, was utilized for procuring the CCDs of Macquarie, which we have said of approximately INR 882 crores, which was post 30th September.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · Medium confidence 10% to 15%
    Yes, that is the target. Of course, this is based on order will happen in the next 6 months.

    — Paresh Mehta

Profitability

  • EBITDA Margin Profitability · FY26 and FY27 · Medium confidence 10% to 11%
    In the range of 10% to 11%.

    — Paresh Mehta

Order Inflow

  • Incremental Order Inflow Order Inflow · H2 FY26 · High confidence INR 6,000 crores to INR 7,000 crores
    So, we still hope we will be able to do back INR 6,000 crores to INR 7,000 crores in second half.

    — Satish Parakh

Capex

  • Total Capex Spend Capex · FY26 · High confidence INR 100 crores
    And we expect to spend approximately INR 100 crores by the year-end, total.

    — Paresh Mehta

Debt

  • Standalone Debt Level Debt · Year-end (FY26) · High confidence near zero
    So, by the year-end, we expect our debt levels to be as good as at zero level because though there will be certain outstanding instruments, which will continue of approximately INR 425 crores, which will get liquidated in April, but that will be supported by cash balances in the balance sheet of ABL.

    — Paresh Mehta

What to watch in Q3 FY26

Completion of 5 BOT projects transition

by November 30, 2025
Current In process
Target Concluded

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.

Risks & concerns

  • Execution delays due to monsoon and intense competition

    medium

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

    Management acknowledged

  • Land acquisition delays for projects

    medium

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

    Management acknowledged

  • Delay in appointed date for HAM projects

    medium

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

    Management acknowledged

  • Project cancellation due to scope change

    low

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

    Management acknowledged

  • Contingent consideration for BOT monetization being lower than expected

    low

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

    Management acknowledged

Q&A highlights

6 direct
Status and timeline for the sale of 5 BOT subsidiaries to Maple Infrastructure Trust Direct
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

Long-term portfolio mix and continued interest in HAM/BOT assets Direct
EPC continues to be our forte as a business, and we derive EPC from our HAM and BOT projects also. In parallel to the EPC business, we will continue to bid for HAM and BOT projects, as and when opportunities arise and continue the development of assets along with major drive on EPC, including other sectors.

Provides insight into the company's strategic focus, confirming a balanced approach between EPC and asset development/monetization.

Asked by Trisha Rathi

Details on the SSLD resolution plan and land acquisition Direct
the company has bid for this project through its subsidiary, Ashoka Infraways and has given an offer to settle the loan for this project from LIC Housing for INR 81 crores. And in the due course, in the next 3 to 4 years, the company will repay the loan of LIC and complete the project in its optimum time lines.

Explains a specific NCLT-related land asset resolution, including the financial commitment and timeline, clarifying a previous company announcement.

Asked by Amit Vora

Utilization of INR 1,826 crores consolidated cash Partial
So, this INR 1,826 crores is largely cash lying at our various BOT projects and substantial cash lying at Ashoka Buildcon in the event of the monetization of the 5 HAM projects. So, out of this, almost INR 900 crores of cash lying at Ashoka Buildcon's bank balance, was utilized for procuring the CCDs of Macquarie, which we have said of approximately INR 882 crores, which was post 30th September.

Clarifies that a significant portion of the cash is project-specific and a large part was used for a specific acquisition post-quarter, addressing concerns about free cash availability.

Asked by Amit Vora

Reasons for H1 revenue decline and H2 growth expectations Direct
A couple of major reasons of elongated monsoon, for the 6 months continuing in October also, may have a small impact on Q3 also. And in certain projects, there is some delay in land acquisition for projects largely in Maharashtra area. So, looking forward, we believe that based on these constraints as well as new projects being bid out slightly on a slower mode, though we expect in the second half, there could be good bidding and receipt of orders. We expect to close this year with the same turnover as last year, on the EPC.

Provides context for the revenue slowdown and sets expectations for H2, indicating a flat full-year EPC turnover despite H1 challenges.

Asked by Vaibhav Shah

Increase in net debt levels and interest costs, and deleveraging plans Direct
Definitely, there is a substantial deleveraging happening in this H2 after realization of the monetization proceeds of the BOT projects, and interest costs will be reduced.

Addresses concerns about rising debt and interest costs, linking future deleveraging directly to planned asset monetization.

Asked by Raj Mehta

Monetization timelines and amounts for remaining HAM assets Direct
So, we have monetized 5 of the HAM projects out of 11 HAM projects. We expect to monetize 4 of the assets by March end and 2 of the assets by June '26 end. Approximately INR 800 and INR 300 crores.

Provides clear timelines and expected proceeds for the next phases of HAM asset monetization, crucial for future cash flow and debt reduction.

Asked by Vasudev Ganatra

Working capital increase in H1 and outlook Partial
Largely will remain in the same way, except for power where we expect the release of working capital from our employers. So, by March end, we should see some improvement in the working capital number of days.

Acknowledges the working capital increase and points to potential improvement in the power segment by March end, indicating a specific area of focus.

Asked by Vaibhav Shah

3 min read 7 chapters

Detailed narrative

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.

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%).

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.

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.

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.

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.

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.
View original transcript

More Construction earnings calls