Ashoka Buildcon Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Ashoka Buildcon reported a mixed Q3 FY26, marked by a significant reduction in consolidated debt following the monetization of 5 BOT SPVs for INR 1,814 crores. While revenue and EBITDA saw a degrowth, PAT surged due to exceptional items. The company's order book remains robust at over INR 16,200 crores, and management provided optimistic guidance for FY27 revenue growth and order inflow, despite near-term challenges in project execution and subdued awarding activity in the sector.

Highlights

  • Consolidated Total Income for Q3 FY26 stood at INR 1,866 crores, a 23% degrowth YoY.

  • Consolidated EBITDA for Q3 FY26 was INR 474 crores, with a margin of 25.4%.

  • Consolidated PAT for Q3 FY26 reached INR 2,111 crores.

  • Consolidated debt significantly reduced to INR 2,722 crores as of December 31, 2025, from INR 4,910 crores in September 2025.

  • The company completed the sale of 5 BOT SPVs for an aggregate consideration of INR 1,814 crores.

  • Order book as of December 31, 2025, stands at INR 15,927 crores, growing to INR 16,235 crores including post-quarter orders.

  • Management guided for FY27 revenue growth of 15% over FY26 and an order inflow target of INR 11,000-12,000 crores.

Key financials

  1. Standalone Total Income ₹1,492 Cr -18%YoY
  2. Standalone EBITDA ₹157 Cr -16%YoY
  3. Standalone EBITDA Margin 10.6%
  4. Standalone PAT ₹102 Cr +68%YoY
  5. Consolidated Total Income ₹1,866 Cr -23%YoY
  6. Consolidated EBITDA ₹474 Cr -30%YoY
  7. Consolidated EBITDA Margin 25.4%
  8. Consolidated PAT ₹2,111 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
    51.9% Revenue Contribution
  • Road EPC HAM
    13.2% Revenue Contribution
  • Power T&D
    21.9% Revenue Contribution
  • Railways
    9% Revenue Contribution
  • Other segments
    4% Revenue Contribution

Order book

high confidence

Total value

₹15,927 Cr

as of 2025-12-31 quantified

Composition

Mix 3 segments
  • Roads and Railway 65%
  • Power T&D 32.1%
  • EPC Building 3.3%

Share of order book by segment

Pipeline

qualified rfp

NHAI bid pipeline

Cancellations & deferrals

  • deferred: Projects like Kundalika, Jaigad, Bankot, Gaimukh, Payegaon are suffering due to land acquisition delays.
The company has a strong order book with a focus on maintaining a substantial EPC business across various segments, despite some execution delays due to land acquisition.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹15 Cr this quarter · ₹75 Cr (FY26) planned
    So, for Q3, the capex was approximately INR15 crores. We expect another INR25 crores in Q4 to take it around INR75 crores to INR80 crores for the year.
  • Debt Net ₹2,722 Cr
    • Repayment Reduction in consolidated debt from INR 4,910 crores in September to INR 2,722 crores in December 2025.
    Total consolidated debt as on 31st December 2025 stood at INR2,722 crores, down from INR4,910 crores. The standalone debt is at INR1,046 crores, which comprises of INR79 crores on equipment loans, INR300 crores on NCDs, and INR667 crores on working capital loans.
  • M&A 5 BOT SPVs Divestment · Closed · Consideration ₹[object Object] (undisclosed)

    Unlocking value from mature assets, deleveraging, reducing interest costs, strengthening balance sheet.

    Led to significant reduction in consolidated debt from INR 4,910 crores to INR 2,722 crores.

    Ashoka Concessions Limited completed the sale of its entire stake in five BOT SPVs to Maple Infrastructure Trust and its nominees. The transaction was concluded for an aggregate consideration of INR1,814 crores and marks an important step in unlocking value from mature assets.
  • M&A Ashoka Concessions Limited (ACL) Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    Consolidates control and simplifies the ownership structure of ACL, making it a 100% subsidiary.

    Following this, Ashoka Buildcon Limited acquired equity shares in Ashoka Concessions Limited and Ashoka Buildcon together with Viva Highways Limited, acquired the remaining Class A and Class B CCDs held by the investors. This was done for an aggregate consideration of INR667 crores, resulting in a full acquisition of securities previously held by Macquarie SBI Infrastructure Funds.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · Medium confidence 8-10% short of last year's revenue
    So FY'26 probably based on current order book and the way the projects are moving, new projects having started a bit late, we believe that we may probably not be able to achieve last year's revenue and we'll be probably short by approximately 8% to 10%.

    — Paresh Mehta

  • FY27 Revenue Growth Revenue · FY27 · Medium confidence 15%
    But going ahead for FY'26-'27, we definitely believe that 15% growth would be there over '26.

    — Paresh Mehta

Margin

  • Q4 FY26 EBITDA Margin Margin · Q4 FY26 · Low confidence similar to current
    So, as we have been saying the margins will improve over the quarters as we go ahead. Q4 '26 will typically remain similar, but FY'26-'27 definitely will be in the range of 9%, 9.5% plus.

    — Satish Parakh

  • FY26-27 EBITDA Margin Margin · FY26-27 · Medium confidence 9-9.5% plus

    — Satish Parakh

  • Future Bids EBITDA Margin Margin · Future · Medium confidence 10-10.5%
    Yes. we believe the bids which are there in the pipeline will throw approximately 10%, 10.5% and being a bit conservative.

    — Paresh Mehta

  • Overall Margin (FY27) Margin · FY27 · Medium confidence 10-11%
    So generally, in the range of 10% to 11%.

    — Paresh Mehta

Order Inflow

  • Order Inflow (remaining 2 months of FY26) Order Inflow · FY26 (remaining 2 months) · Medium confidence INR 3,000 crores
    So, we believe that we should keeping this 2 months available, around INR3,000-odd crores order book should come in with probably NHAI, also pushing their biddings, probably in the last 2 months. I think INR3,000 crores should be an easy number to achieve for a for a new order book.

    — Paresh Mehta

  • Order Inflow (FY27) Order Inflow · FY27 · Medium confidence INR 11,000-12,000 crores
    And based on budget promises which have been made, definitely we will look overall order book intake for the next year to the tune of around INR11,000 to INR12,000 crores we generally keep as a vision for the intake of orders.

    — Paresh Mehta

What to watch in Q4 FY26

Resolution of land acquisition issues for slow projects

next quarter
Current Projects like Kundalika, Jaigad, Bankot, Gaimukh, Payegaon are stuck due to land acquisition.
Target Land acquisition issues resolved, projects pick up speed.

Why it matters

Improved execution velocity directly impacts revenue recognition and overall project progress.

So, these projects basically are suffering in terms of land acquisition and probably, this would get over in another quarter. So next year, we'll see a good pickup in all these projects.

Risks & concerns

  • Subdued awarding activity in highway sector

    medium

    Awarding activity by central agencies has been subdued for the past 2 years, with highway construction expected to drop 10-15% in FY26, lowest since 2017-18.

    Management acknowledged

  • Land acquisition and regulatory approval delays

    medium

    Several projects (Kundalika, Jaigad, Bankot, Gaimukh, Payegaon) are suffering due to land acquisition, impacting execution speed.

    Management acknowledged

  • Impairment of Saudi subsidiary establishment expenses

    low

    INR 37 crores impaired for establishment expenses of a Saudi subsidiary due to lack of order book, though management hopes for reversal if business materializes.

    Management acknowledged

Q&A highlights

7 direct
EBITDA margin and other expenditure in Q3 Direct
On a Q-on-Q basis, I think the EBITDA stood at approximately 9%,. It's more an impact of a lower turnover and coverage of the fixed overheads which are there. Otherwise, There was ECL provision, which has increased the other expenses. It's INR25 crores.

Clarifies the reasons for lower Q3 EBITDA margin, attributing it to lower turnover, fixed overheads, and a specific ECL provision.

Asked by Vaibhav Shah

Revenue guidance for FY26 and FY27 Direct
So FY'26 probably based on current order book and the way the projects are moving, new projects having started a bit late, we believe that we may probably not be able to achieve last year's revenue and we'll be probably short by approximately 8% to 10%. But going ahead for FY'26-'27, we definitely believe that 15% growth would be there over '26.

Provides specific revenue growth targets for the current and next fiscal year, indicating a near-term dip but strong recovery.

Asked by Vaibhav Shah

Order inflow for YTD FY26 and full year target Direct
Year-to-date, approximately INR5,200 crores is the order book flow for EPC in 9 months and another INR307 crores, which has come post December. So, we believe that we should keeping this 2 months available, around INR3,000-odd crores order book should come in with probably NHAI, also pushing their biddings, probably in the last 2 months. I think INR3,000 crores should be an easy number to achieve for a for a new order book.

Quantifies current order inflow and sets a clear target for the remaining part of the fiscal year, providing visibility on future order book additions.

Asked by Vaibhav Shah

Acceleration of slow-moving projects Direct
So, these projects basically are suffering in terms of land acquisition and probably, this would get over in another quarter. So next year, we'll see a good pickup in all these projects.

Addresses concerns about execution speed on specific projects, attributing delays to land acquisition and providing a timeline for resolution.

Asked by Bhavin Modi

Holdback and contingent consideration from BOT asset sales Direct
So, on the holdback amount, in the HAM, we have approximately INR96 crores of holdback. And in the BOT project approximately INR50 crores. We expect both these numbers to materialize before March... The contingent consideration is consideration linked to extension of toll concession period, which will take approximately 1 to 2 years for it to materialize with NHAI...

Provides specific amounts and timelines for the realization of remaining proceeds from asset monetization, crucial for cash flow and debt reduction.

Asked by Bhavin Modi

Rationale for asset monetization and capital allocation strategy Direct
Soyes, there is a lot of demand for assets, and there is a good arbitrage in selling these assets. These assets may be giving us an IRR of 15% to 17%... It makes sense in cashing them out and use this money for newer projects, which will bring the EPC order book also plus another asset with, say, 15% to 17% IRR...

Explains the strategic logic behind continuous asset monetization, focusing on deleveraging and reinvesting in higher-IRR EPC projects.

Asked by Amit Kumar

Monetization timeline for remaining HAM projects Direct
For the monetization of the 6 HAM projects which are yet with us, 4 of the HAM projects we expect to monetize by March, approximately INR750 crores plus and the last 2 projects approximately INR400 crores by June '26.

Gives clear timelines and expected proceeds for the divestment of remaining HAM assets, further contributing to debt reduction.

Asked by Bhavin Modi

NHAI matter regarding immunity from court Partial
So, it's status quo, still, it has been stayed in the court, and we are bidding NHAI projects, all of the projects. So, there is no impact on the business as such. They formed the committee and work is in progress. There will be series of meetings and then decision will be taken.

Clarifies the ongoing status of a legal matter with NHAI, indicating it's still under review but not impacting current business operations.

Asked by Bhavin Modi

3 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Ashoka Buildcon reported a standalone total income of INR 1,492 crores in Q3 FY26, marking an 18% year-on-year degrowth. Standalone EBITDA stood at INR 157 crores, with a margin of 10.6%, showing a 30 bps improvement YoY despite the degrowth. Profit After Tax (PAT) for the standalone entity increased by 68% YoY to INR 102 crores. On a consolidated basis, total income was INR 1,866 crores (23% degrowth YoY), with EBITDA at INR 474 crores (25.4% margin) and PAT at INR 2,111 crores, significantly influenced by exceptional items.

Strategic Deleveraging and Asset Monetization

A key highlight of the quarter was the successful monetization of five BOT SPVs, generating an aggregate consideration of INR 1,814 crores. This strategic move led to a substantial reduction in consolidated debt, which decreased from INR 4,910 crores in September 2025 to INR 2,722 crores by December 31, 2025. The company also acquired the remaining equity and CCDs in Ashoka Concessions Limited for INR 667 crores, consolidating its ownership to 100%. Further monetization of 4 HAM projects (approx. INR 750 crores) is expected by March, with the remaining 2 HAM projects (approx. INR 400 crores) by June 2026, aiming to bring consolidated debt down to INR 200-300 crores.

Order Book and Project Execution

As of December 31, 2025, Ashoka Buildcon's balance order book stood at INR 15,927 crores, increasing to INR 16,235 crores with post-quarter orders. Roads and railway projects constitute 65% of the order book (INR 10,292 crores), followed by Power T&D at 32.1% (INR 5,108 crores). Year-to-date EPC order inflow for 9M FY26 was approximately INR 5,200 crores. However, several projects face execution delays due to land acquisition issues, which are expected to resolve in the next quarter, leading to a pickup in execution speed.

Outlook and Guidance

Management anticipates FY26 revenue to be 8-10% lower than the previous year due to project delays and slow starts. However, they project a 15% revenue growth for FY27 over FY26. EBITDA margins are expected to remain around 9-9.5% plus for FY26-27, with future bids targeting 10-10.5%. The company aims for an order inflow of INR 3,000 crores in the remaining two months of FY26 and a robust INR 11,000-12,000 crores for FY27, driven by NHAI's bidding pipeline of INR 65,000 crores.

Capital Allocation and Debt Management

The company's capital allocation strategy is focused on deleveraging and reinvesting in higher-IRR EPC projects. Q3 FY26 capex was INR 15 crores, with a full-year FY26 projection of INR 75-80 crores. The significant debt reduction from asset monetization is intended to free up capital for new investments and improve the balance sheet. Management also noted an impairment of INR 37 crores for establishment expenses of a Saudi subsidiary, which could be reversed if business materializes.

Sector Dynamics and Challenges

The Indian highway sector is undergoing a transition, with a shift from rapid expansion to quality and capital efficiency. Awarding activity by central agencies has been subdued for the past two years, leading to a projected 10-15% drop in highway construction for FY26. Despite these near-term challenges, the government's focus on corridor-based development and renewed push for PPP models, along with planned monetization of road assets by NHAI, provides a positive medium to long-term structural outlook for the sector.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Construction earnings calls