Ashoka Buildcon Limited — Q4 FY25 earnings call

Call held 26 May 2025

Management summary

Ashoka Buildcon reported a mixed Q4 and FY25, with standalone revenues declining but consolidated revenues showing modest growth. The company's order book remains strong at ₹14,905 crores, with significant monetization of BOT and HAM assets expected in FY26 to reduce consolidated debt. Management guided for 10% revenue growth and 10-10.5% EBITDA margins for FY26, anticipating a pick-up in execution from Q3 FY26 after initial project delays.

Highlights

  • Q4 FY25 Standalone Total Income: ₹2,012 crores, down 21% YoY.

  • FY25 Standalone EBITDA Margin: 9.4%, improved by 60 bps YoY.

  • Q4 FY25 Consolidated Total Income: ₹2,755 crores, up 12% YoY.

  • FY25 Consolidated Total Income: ₹10,205 crores, up 2% YoY.

  • Total Order Book as of March 31, 2025: ₹14,905 crores.

  • Expected Order Inflow for FY26: ₹10,000-₹12,000 crores.

  • Consolidated Debt as of March 31, 2025: ₹6,671 crores, with ₹4,000 crores expected reduction by Q2 FY26.

  • FY26 Revenue Growth Guidance: 10% (revised from 15%), with EBITDA margins of 10%-10.5%.

Key financials

2 periods

Q4 FY25

  • Standalone Total Income
    ₹2,012 Cr
    YoY -21%
  • Standalone EBITDA
    ₹181 Cr
  • Standalone EBITDA Margin
    9%
  • Standalone PAT
    ₹60 Cr
  • Consolidated Total Income
    ₹2,755 Cr
    YoY +12%
  • Consolidated EBITDA
    ₹838 Cr
    YoY +16%
  • Consolidated PAT
    ₹452 Cr
  • BOT Gross Toll Collection
    ₹348 Cr
    YoY +6%

FY25

  • Standalone Total Income
    ₹7,188 Cr
    YoY -8%
  • Standalone EBITDA
    ₹673 Cr
    YoY -3%
  • Standalone EBITDA Margin
    9.4%
    YoY +0.6%
  • Standalone PAT
    ₹197 Cr
  • Consolidated Total Income
    ₹10,205 Cr
    YoY +2%
  • Consolidated EBITDA
    ₹3,089 Cr
    YoY +26%
  • Consolidated PAT
    ₹1,734 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
    58.3% Revenue Contribution (Q4 FY25)
  • Road HAM
    12.5% Revenue Contribution (Q4 FY25)
  • Power EPC
    2.8% Revenue Contribution (Q4 FY25)
  • Railways
    2.1% Revenue Contribution (Q4 FY25)
  • Other Segments (Building EPC & others)
    24.3% Revenue Contribution (Q4 FY25)

Order book

high confidence

Total value

₹14,905 Cr

as of 2025-03-31 quantified

Inflow this quarter

₹311.92 Cr

Execution

Q1-Q2 FY26 will be slow, pick up in Q3-Q4 FY26 due to initial works and delays.

Composition

Mix 3 segments
  • Roads and Railways 72.9%
  • Power T&D 24.3%
  • EPC Building 2.8%

Share of order book by segment

Pipeline

other

Target order inflow for FY26 across various sectors.

Cancellations & deferrals

  • deferred: 60% of new orders shifted to Q3 FY26 due to land acquisition and forest clearance delays.
The company expects good bidding activity in the coming quarters, with a focus on specialized structures and state-level works amidst growing competition in NHAI.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹200 Cr
    CAPEX will be around Rs. 200 crores with all segments.
  • Debt Net ₹6,671 Cr Cost 8.5%
    Total consolidated debt as on 31st March 2025 stood at INR 6,671 crores.
  • M&A 5 BOT subsidiaries of Ashoka Concessions Limited Divestment · Pending regulatory · Consideration ₹2,500 Cr

    Deleveraging and capital recycling.

    Expected to reduce consolidated debt by ₹2,000 crores and contribute to ₹3,000 crores net cash after SBI Macquarie payment and capital gains tax.

    To update on sale disposal of stake sale in subsidiaries of wConcessions Limited. This is in reference to our earlier announcement about proposed sale of entire shareholding in 5 BOT subsidiaries of Ashoka Concessions Limited to Maple Infrastructure Trust. The completion of this transaction has been delayed as some of the required conditions are still being worked on. In agreement with the proposed investor, the new expected date to complete the transaction is 30th June 2025.
  • M&A HAM projects Divestment · Pending regulatory · Consideration ₹2,400 Cr

    Deleveraging and capital recycling.

    Expected to reduce consolidated debt by ₹2,000 crores and contribute to ₹3,000 crores net cash after SBI Macquarie payment and capital gains tax.

    and Rs. 2,400 crores on the HAM projects, which is typically Rs. 5000 odd crores of which Rs. 1,600 crores would go to SBI Macquarie.
  • M&A Jaora Nayagaon stake Acquisition · Pending regulatory · Consideration ₹150 Cr
    Yes, 1,526 and we will be acquiring Jaora Nayagaon stake also of Rs. 150 crores.
  • Liquidity Liquidity disclosed Positive cash flow from operations expected in FY26 (standalone). Cash on balance sheet to be utilized for sharing with investors and for newer business.
    I am sure for '25-'26 it will be a positive one.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 10%

    Previously 15% → 10%

    So basically whatever new orders we got as I explained were supposed to start in Q1-Q2. Out of this only 40% have started. 60% is getting shifted to Q3 because of various reasons like land acquisition and forest clearance. So these are getting delayed started. That is why the whole growth for the year is getting affected.

    — Satish Parakh

Margin

  • EBITDA Margin Margin · FY26 · High confidence 10%-10.5%
    So on margins, we will be improving our margins based on the new order books which have come in and we should be in the range of 10% plus.

    — Paresh Mehta

Order Inflow

  • Order Inflow Order Inflow · FY26 · High confidence ₹10,000-₹12,000 crores
    Order inflows, 10,000 to 12,000 for '25-'26. That is what we expect, spread into various sectors, roads, railways, other infra.

    — Paresh Mehta

Capex

  • Capex Capex · FY26 · High confidence ₹200 crores
    CAPEX will be around Rs. 200 crores with all segments.

    — Satish Parakh

Debt

  • Consolidated Debt Reduction Debt · Q2 FY26 · High confidence ₹4,000 crores
    So by Quarter 2, we expect Rs. 4,000 crores of debt to go down from the consolidated balance sheet and whatever excess monetization will happen, we reduce the working capital debt also.

    — Paresh Mehta

  • Standalone Debt Post Monetization Debt · Post Monetization · High confidence ₹200-₹300 crores
    Based on monetization, our debt level should be substantially low below the normal debt of Rs. 200 crores to Rs. 300 crores, though it could be surplus too, but we could have certain project center consideration also on the solar front and so all said and done, debt should be substantially reduced post-monetization.

    — Paresh Mehta

Finance Cost

  • Finance Cost Reduction Finance Cost · Next Year · Medium confidence ₹300 crores
    Yes, that's true.

    — Paresh Mehta

What to watch in Q1 FY26

BOT Asset Monetization Completion

Next quarter (Q1 FY26)
Current Pending, expected by June 30, 2025
Target Sale closed, cash received (approx ₹1,700 crores by July 15th)

Why it matters

This is a major event for debt reduction and cash inflow, crucial for the company's deleveraging strategy.

The completion of this transaction has been delayed as some of the required conditions are still being worked on. In agreement with the proposed investor, the new expected date to complete the transaction is 30th June 2025.

Risks & concerns

  • Project Execution Delays

    medium

    60% of new orders shifted to Q3 FY26 due to land acquisition and forest clearance issues, impacting FY26 revenue growth.

    Management acknowledged

  • Asset Monetization Delays

    medium

    Completion of BOT and HAM asset sales has faced delays due to share transfer restrictions and regulatory conditions, though management is confident in resolution by Q1/Q2 FY26.

    Management acknowledged

  • NHAI Bidding Competition

    low

    Competition in NHAI bidding is growing, requiring a focus on specialized projects and state-level works.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Debt Discrepancy between Presentation and Balance Sheet Evasive
They may be classified into current and non-current also. So may be you can take it offline or we will come back later.

Analyst highlighted a significant discrepancy in reported debt figures, which management did not fully clarify during the call, suggesting an offline discussion.

Asked by Hardik Gandhi

FY26 Revenue Growth Guidance Revision Direct
So basically whatever new orders we got as I explained were supposed to start in Q1-Q2. Out of this only 40% have started. 60% is getting shifted to Q3 because of various reasons like land acquisition and forest clearance. So these are getting delayed started. That is why the whole growth for the year is getting affected.

Management explained the reason for cutting FY26 revenue growth guidance from 15% to 10%, citing project start delays due to external factors.

Asked by Vaibhav Shah

Asset Monetization Timelines and Net Proceeds Direct
So by Quarter 2, we expect Rs. 4,000 crores of debt to go down from the consolidated balance sheet and whatever excess monetization will happen, we reduce the working capital debt also.

Analysts pressed for detailed timelines and net cash realization from BOT and HAM asset sales, which management clarified, outlining significant debt reduction plans.

Asked by Vaibhav Shah

NHAI Bidding Competition and Strategy Direct
So NHAI competition remains, rather it is growing day-by-day. So we are now focusing on specialized structures, some specialized jobs in NHAI and MoRTH and state level works at all other segments.

Management provided insight into their strategy for securing new orders amidst increasing competition in NHAI projects, focusing on specialized segments.

Asked by Jainam Jain

Standalone Debt Levels Post Monetization Direct
Based on monetization, our debt level should be substantially low below the normal debt of Rs. 200 crores to Rs. 300 crores, though it could be surplus too, but we could have certain project center consideration also on the solar front and so all said and done, debt should be substantially reduced post-monetization.

Management provided a clear target for standalone debt levels after asset monetization, indicating a significant deleveraging.

Asked by Jainam Jain

Working Capital Trajectory and Management Direct
So. These are some, just break it into power and the road project. Power projects have a longer working capital cycle, which was backed in FY'24-'25. So these are typically having larger working capital, so that trend of working capital cycle at these levels is continuing for at least purely on a standalone working capital basis, at the interest rate subject to monetization. So, otherwise this level will continue for '25-'26.

Analyst inquired about the working capital cycle, and management explained its trajectory, noting it would remain similar for FY26, with ₹1,000 crores being manageable.

Asked by Bhavin

Dividend/Buyback Plans Post Cash Inflow Partial
That definitely we've seen good visibility. Having cash on the balance sheet would be better utilized by sharing it with investors and for newer business.

Analyst probed about shareholder returns given expected cash inflows, and management indicated a positive inclination towards utilizing cash for investors and new business without committing to a specific action.

Asked by Bhavin

Certainty of SBI Macquarie Deal Direct
I believe most of these all the monetization happening. does not the question, does it arise? I am sure that the deal will go through by July definitely they will get paid off.

Analyst questioned the certainty of the SBI Macquarie deal given past delays, and management expressed high confidence in its completion by July.

Asked by Parikshit Gupta

2 min read 6 chapters

Detailed narrative

Q4 and FY25 Financial Performance Overview

Ashoka Buildcon reported a mixed financial performance for Q4 and FY25. Standalone total income for Q4 FY25 was ₹2,012 crores, a 21% degrowth YoY, with EBITDA at ₹181 crores and a 9% margin. For the full FY25, standalone total income was ₹7,188 crores (down 8% YoY), and EBITDA margin improved by 60 basis points to 9.4%. Consolidated results showed growth, with Q4 FY25 total income at ₹2,755 crores (up 12% YoY) and FY25 total income at ₹10,205 crores (up 2% YoY), with consolidated EBITDA growing 26% YoY to ₹3,089 crores for FY25.

Robust Order Book and Strategic Composition

The company's total order book stood at ₹14,905 crores as of March 31, 2025, providing strong revenue visibility. Roads and Railways constitute the largest share at ₹10,867 crores (72.9%), including ₹1,859 crores in HAM projects and ₹8,688 crores in EPC road projects. Power T&D accounts for ₹3,618 crores (24.3%), with the EPC building segment contributing ₹420 crores (2.8%). New orders received in March and April 2025, totaling ₹880.78 crores, further strengthen the pipeline.

FY26 Outlook and Guidance

For FY26, Ashoka Buildcon has guided for approximately 10% revenue growth, a revision from an earlier 15% target, primarily due to initial project delays (land acquisition, forest clearances) pushing 60% of new orders to Q3 FY26. The company expects EBITDA margins to improve to the 10%-10.5% range. Management targets order inflows of ₹10,000-₹12,000 crores for FY26, spread across roads, railways, power, and other infrastructure segments.

Significant Asset Monetization for Debt Reduction

The company is actively pursuing monetization of its BOT and HAM assets. The sale of 5 BOT subsidiaries to Maple Infrastructure Trust is expected to complete by June 30, 2025, with approximately ₹1,700 crores of proceeds anticipated by July 15th. Additionally, HAM project monetizations are expected to yield ₹1,200 crores from 5 projects by early July and another ₹400 crores from two assets by August. These monetizations are projected to reduce consolidated debt by ₹4,000 crores by Q2 FY26 and standalone debt to a minimal ₹200-₹300 crores.

Capital Allocation and Debt Management

As of March 31, 2025, total consolidated debt stood at ₹6,671 crores, with standalone debt at ₹1,405 crores. The company anticipates a substantial reduction in finance costs, estimated around ₹300 crores, driven by the planned debt reduction of approximately ₹4,000-₹5,000 crores. Capex for FY26 is projected at ₹200 crores across all segments. Management also indicated that cash generated from monetization would be utilized for sharing with investors and for new business opportunities.

Industry Trends and Bidding Strategy

The infrastructure sector continues to receive strong government support, with a ₹10 lakh crore investment plan over the next two years. While NHAI bidding remains competitive, Ashoka Buildcon is strategically focusing on specialized structures, specialized jobs within NHAI and MoRTH, and state-level works to secure profitable orders. The overall bid pipeline for FY26 is robust, with significant opportunities in roads (₹7,000-₹8,000 crores), railways and power (₹2,000 crores each), and water/buildings (₹2,000 crores).

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