Ashoka Buildcon Limited — Q4 FY26 earnings call

Call held 22 May 2026

Management summary

Ashoka Buildcon reported a challenging Q4 and full-year FY26 with significant revenue degrowth, attributing it to a transition year in infrastructure, slower awarding activity, and execution challenges. Despite this, the company secured several key international and domestic projects, strengthening its order book to INR 15,312 crores. Management provided optimistic guidance for FY27, targeting 20% revenue growth and improved EBITDA margins of 9.5-10.5%, alongside plans to normalize working capital and monetize remaining HAM assets.

Highlights

  • Secured significant international projects: INR 900 crores share in Saudi Arabia (Diriyah-I hotel package), USD 72 million (INR 690 crores) in Angola (distribution networks), and USD 45 million (INR 430 crores) in Liberia (road upgradation).

  • Reaffirmation of credit ratings: AA stable for long-term and A1+ for short-term.

  • Full year FY26 standalone EBITDA margin improved by 130 bps YoY to 10.7%.

  • Targeting 20% revenue growth and 9.5-10.5% EBITDA margin for FY27.

  • Expected to monetize 6 HAM SPVs by December 2026, bringing in INR 1,150+ crores.

Concerns

  • Standalone Q4 FY26 total income degrew by 10% YoY to INR 1,819 crores.

  • Full year FY26 standalone total income degrew by 17% YoY to INR 5,952 crores.

  • Working capital days almost doubled in FY26, though expected to normalize by post-September.

  • Q4 FY26 standalone EBITDA margin was 9.2%, impacted by INR 28 crores in ECL provisions.

Key financials

2 periods

Q4 FY26

  • Standalone Total Income
    ₹1,819 Cr
    YoY -10%
  • Standalone EBITDA
    ₹168 Cr
    YoY -7%
  • Standalone EBITDA Margin
    9.2%
  • Standalone PAT
    ₹49 Cr
  • Consolidated Total Income
    ₹1,992 Cr
  • Consolidated EBITDA
    ₹302 Cr
  • Consolidated EBITDA Margin
    15.1%
  • Consolidated PAT
    ₹147 Cr
  • BOT Toll Collection
    ₹76.9 Cr
    YoY +16%

FY26

  • Standalone Total Income
    ₹5,952 Cr
    YoY -17%
  • Standalone EBITDA
    ₹636 Cr
    YoY -6%
  • Standalone EBITDA Margin
    10.7%
  • Standalone PAT
    ₹320 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 (Standalone Q4 FY26)
    50% Revenue Contribution
  • Road HAM (Standalone Q4 FY26)
    10% Revenue Contribution
  • Power T&D (Standalone Q4 FY26)
    18% Revenue Contribution
  • Railway (Standalone Q4 FY26)
    8% Revenue Contribution
  • Other Segments (Standalone Q4 FY26)
    14% Revenue Contribution

Order book

high confidence

Total value

₹15,312 Cr

as of 2026-03-31 quantified

Composition

Mix 3 segments
  • Roads & Railway 66%
  • Power T&D 30%
  • Building 3.7%

Share of order book by segment

Pipeline

qualified rfp

National Highway projects, various states, and other sectors

The order book remains diversified across key segments and geographies, with new international wins strengthening the EPC footprint.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹16 Cr this quarter · ₹100 Cr (FY27) planned
    • International projects
    Q4, so total capex for the year was, INR67 crores, of which Q4 was INR16 crores. ... We're planning approximately around INR100 crores of capex, which includes certain capex on the international projects also.
  • Debt Debt disclosed
    Total consolidated debt as on March 31, 2026 stood at INR2,778 crores. ... And the standalone debt is at INR1,127 crores, which comprises of INR70 crores of equipment loan, INR300 crores of NCDs and INR757 crores of working capital.
  • M&A 6 HAM SPVs Divestment · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    Asset monetization for value generation and capital efficiency

    Expected inflow of INR 750+ crores from 4 assets by June end and INR 400 crores from 2 assets by December.

    On the asset monetization front, we continue to progress on the sale of remaining 6 HAM SPVs. The expected completion time line has now been extended to June 2026, subject to fulfilment of conditions precedent. ... So to continue on that, out of the 6 projects, 4 we are definitely targeting by June end, which will typically bring in cash of around INR750-plus crores. And the balance we expect by December, which should bring in another INR400 crores.
  • M&A Chennai ORR, Jaora-Nayagaon Divestment · Announced

    Monetization of good assets with buyer interest

    So we do pursue the sale of these 2 assets in the coming 12 to 18 months. And both assets are good assets to be sold and good interest is there from buyers. So we have launched a small process of monetization.
  • Liquidity Liquidity disclosed Working capital debt is INR 757 crores (standalone) and is expected to normalize by post-September from current stretched levels.
    And the standalone debt is at INR1,127 crores, which comprises of INR70 crores of equipment loan, INR300 crores of NCDs and INR757 crores of working capital. ... So how do you see it going ahead? Last year, we were around 110 days odd. This year, it has almost doubled. So how do you see it going forward? ... So we believe that we should go back to normalcy by post September.

Guidance & targets

Revenue

  • Revenue Growth Revenue · next year (FY27) · High confidence 20%
    So execution-wise, next year we should improve by 20%.

    — Satish Parakh

Order Inflow

  • Order Inflow Order Inflow · this year (FY27) · High confidence INR 8,000 crores to INR 10,000 crores
    Order book wise also, we expect to be at around 8% to 10% this year. ... So order book guidance, as I said, it is INR8,000 crores to INR10,000 crores.

    — Satish Parakh

Profitability

  • EBITDA Margin Profitability · next year (FY27) · High confidence 9.5% to 10.5%
    So for FY '26, our EBITDA margins for the whole year stood at around 8.5% plus. Our estimation for FY '27 based on the order book which we have, we will be in the range of 9.5% to 10.5% for next year. So we will definitely reach a 2-digit figure for next year.

    — Paresh Mehta

Working Capital

  • Working Capital Days Working Capital · post September · Medium confidence 110 to 120 days

    From almost doubled (from 110 days) today

    So how do you see it going ahead? Last year, we were around 110 days odd. This year, it has almost doubled. So how do you see it going forward? ... So we believe that we should go back to the old norms of 110 to 120 days, this is more of a transitory as in the last call also, we had said there was some buildup of receivables in our Power division, which probably by end of June and September quarter, most of things would get cleared. So we believe that we should go back to normalcy by post September.

    — Paresh Mehta

Debt

  • Standalone Debt Debt · March '27 · High confidence INR 500 crores to INR 600 crores

    From INR 1,126 crores today

    So by the end of financial year, today, as of March '26, our working capital debt is INR1,126 crores, less cash of around INR580 crores, so approximately INR600 crores. And we believe that the debt level will be in the range of INR500 crores to INR600 crores by March '27 also, keeping all almost similar kind of turnover with a 20% jump.

    — Paresh Mehta

  • Consolidated Project Loans Debt · March '27 · High confidence INR 500 crores to INR 600 crores

    From INR 2,778 crores today

    On the debt side, we have around INR2,778 crores of total consolidated debt, of which almost INR1,300 crores would not be there as of March '27 because we would have sold those HAM assets. So we'll be in the range of the project loans would be in the range of, as of time, around INR500 crores to INR600 crores.

    — Paresh Mehta

Capex

  • Total Capex Capex · FY27 · Medium confidence INR 100 crores
    We're planning approximately around INR100 crores of capex, which includes certain capex on the international projects also.

    — Paresh Mehta

HAM Equity Investment

  • Balance Equity Investment in HAM projects HAM Equity Investment · FY27-FY29 · High confidence INR 325 crores
    So on the equity side, the balance investment to be made in the HAM projects is around INR325 crores. ... For '26-'27, total investment would be around INR175 crores and '27-'28, INR75 crores, '28'29, INR75 crores.

    — Paresh Mehta

What to watch in Q1 FY27

Working Capital Days Normalization

post September
Current Almost doubled from 110-120 days
Target Return to 110-120 days

Why it matters

Normalization of working capital is crucial for improving liquidity and cash flow efficiency.

So we believe that we should go back to normalcy by post September.

Risks & concerns

  • Slower Awarding Activity and Project Delays

    medium

    Awarding activity was slower than anticipated, and several project delays in clearances and land availability impacted execution momentum across the industry.

    Management acknowledged

  • Challenging Global Macroeconomic Environment

    medium

    Geopolitical tensions, inflationary pressures, supply chain uncertainties, elevated input costs, and labor shortages impacted execution pace.

    Management acknowledged

  • Working Capital Stretch

    medium

    Working capital days almost doubled in FY26, though management expects it to normalize by post-September.

    Analyst acknowledged

  • NHAI Disqualification Rule for Project Casualties

    medium

    A new NHAI circular regarding disqualification of bidders with project casualties is a concern, with industry bodies seeking clearer guidelines.

    Analyst acknowledged

  • ECL Provisions Impacting Margins

    low

    INR 28 crores in ECL provisions in Q4 FY26 contributed to lower margins.

    Management acknowledged

Q&A highlights

6 direct
SPV vs Standalone Order Book for New Projects Direct
This is being executed in the SPVs. So they're not direct ABL order. This will be over and above the INR15,312 crores. ... Both the orders, yes, they will be executed at SPV level. So at the consol, they will be captured. But at stand-alone ABL level, they are not direct orders executed by ABL directly.

Clarifies that significant new international orders (Saudi hotel, IGR Pune) are executed at the SPV level and will not directly reflect in the standalone order book, impacting standalone revenue visibility.

Asked by Vaibhav Shah

Reasons for Weak Execution and Margins in FY26 Direct
So largely, as we have indicated in our opening remarks also, the geopolitical situation has brought some pressure on the price escalation. So we have considered in our balance budget increase of around 0.5% to 1% of price escalations. And certain ECL provisions done at the year-end are contributors to a lower percentage.

Explains the factors contributing to the revenue degrowth and margin pressure in FY26, including external macroeconomic factors and internal provisions.

Asked by Vaibhav Shah

Working Capital Stretch and Normalization Plan Direct
So because these are milestone-based projects and a couple of projects where we are awaiting appointed date and ROW clearances, we believe that we should go back to the old norms of 110 to 120 days, this is more of a transitory... So we believe that we should go back to normalcy by post September.

Addresses investor concern about the significant increase in working capital days and provides a timeline for its expected normalization, linking it to project milestones and clearances.

Asked by Vaibhav Shah

Timelines and Inflows from Remaining HAM Asset Monetization Direct
So to continue on that, out of the 6 projects, 4 we are definitely targeting by June end, which will typically bring in cash of around INR750-plus crores. And the balance we expect by December, which should bring in another INR400 crores.

Provides specific timelines and expected cash inflows from the monetization of the remaining HAM assets, which is crucial for debt reduction and capital allocation.

Asked by Bhavin Modi

Balance Equity Investment in HAM Projects Direct
So on the equity side, the balance investment to be made in the HAM projects is around INR325 crores. ... For '26-'27, total investment would be around INR175 crores and '27-'28, INR75 crores, '28'29, INR75 crores.

Details the remaining equity commitment for HAM projects over the next three fiscal years, providing clarity on future capital requirements.

Asked by Aditya Sahu

Debtor Days in Power T&D and Road EPC Segments Direct
General experience on the power sector is that the billing cycle is almost 5 to 7 months by the time which we get all money... On the road sector, largely depend on milestone based on completion of various stages, but there is monthly billing at state level. So the cycle is around 3 to 3.5 months.

Provides insight into the typical collection cycles for different segments, which helps understand the working capital dynamics.

Asked by Aditya Sahu

NHAI Circular on Disqualification for Project Casualties Partial
Yes, Road Federation is discussing with them, and they are coming out with a guideline how they will define the casualties for debarment and all. ... Unless it's a catastrophic kind of failure where the failure is due to the structural defect, then only they will take such harsh situation.

Highlights a potential regulatory risk from a new NHAI circular that could impact future bidding, and indicates that the industry is seeking clarification on its interpretation.

Asked by Bhavin Modi

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Detailed narrative

Q4 & FY26 Financial Performance Review

Ashoka Buildcon reported a challenging Q4 FY26 with standalone total income at INR 1,819 crores, a 10% YoY degrowth, and EBITDA at INR 168 crores, down 7% YoY. For the full year FY26, standalone total income stood at INR 5,952 crores, a 17% YoY decline, while EBITDA was INR 636 crores, down 6% YoY. Despite the revenue contraction, the full-year standalone EBITDA margin improved by 130 bps to 10.7%, indicating some operational efficiency. Consolidated figures for Q4 FY26 showed total income of INR 1,992 crores and an EBITDA margin of 15.1%.

Robust Order Book and Strategic New Wins

As of March 31, 2026, Ashoka Buildcon's balance order book stood at INR 15,312 crores, excluding INR 681 crores from Angola received post-quarter. The order book is diversified, with Roads & Railway projects comprising 66% (INR 10,123 crores), Power T&D at 30% (INR 4,627 crores), and Building at 3.7% (INR 562 crores). Key new wins include a INR 900 crores share in a Saudi Arabian hotel package, USD 72 million (INR 690 crores) for Angola's distribution networks, USD 45 million (INR 430 crores) for a Liberian road project, and INR 242 crores for a bridge in Bihar, India. These international projects strengthen the company's global EPC footprint.

FY27 Outlook and Growth Guidance

Management provided an optimistic outlook for FY27, targeting a 20% revenue growth. They expect order inflow for FY27 to be in the range of INR 8,000 crores to INR 10,000 crores, diversified across roads, railways, and power T&D. EBITDA margins are projected to improve to 9.5-10.5% for FY27, reaching a double-digit figure. The bid pipeline is substantial, with approximately INR 40,000 crores in National Highway projects, another INR 40,000 crores in various state projects, and INR 30,000-40,000 crores in other sectors.

Asset Monetization and Debt Reduction Strategy

The company is actively pursuing asset monetization, with the sale of the remaining 6 HAM SPVs expected to complete by December 2026. This is projected to generate inflows of INR 750+ crores from 4 assets by June end and INR 400 crores from the remaining 2 by December. This monetization is crucial for debt reduction, with standalone debt targeted to be in the range of INR 500-600 crores by March 2027, down from INR 1,127 crores as of March 2026. Consolidated project loans are also expected to reduce to INR 500-600 crores by March 2027 after HAM asset sales.

Working Capital Management and Capex Plans

Working capital days almost doubled in FY26, a concern management attributes to milestone-based projects and delays in clearances. They anticipate a return to the normal 110-120 days by post-September 2026. Total capex for FY26 was INR 67 crores, with INR 16 crores spent in Q4. For FY27, the company plans approximately INR 100 crores in capex, including investments in international projects. The balance equity investment required for HAM projects is INR 325 crores, spread over FY27-FY29.

Industry Challenges and Regulatory Environment

FY26 was characterized as a transition year for the infrastructure sector, marked by slower awarding activity and execution challenges due to global macroeconomic factors, inflationary pressures, and supply chain uncertainties. The company noted a shift towards quality-led, capital-efficient, and corridor-based development in the Indian railways and infrastructure sector. A new NHAI circular regarding disqualification of bidders based on project casualties is a point of discussion, with the Road Federation seeking clearer guidelines from authorities.

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