Ashoka Buildcon Limited announced that its subsidiary, Ashoka Purestudy Technologies Private Limited (APTPL), ceased to be a subsidiary effective June 12, 2026, following a preferential allotment of equity shares to a third-party investor. The company's stake in APTPL diluted from 59% to 39.33% due to the issuance of 29,879 fully paid-up equity shares of ₹10 each at ₹10 per share. This reduction in shareholding resulted in APTPL being reclassified as an associate company, impacting the consolidation of its financial statements under applicable Ind AS standards.

The preferential allotment was undertaken by APTPL to raise growth capital for business operations, expansion plans, and general corporate purposes. The transaction involved an independent third-party investor who is not related to the company, its promoters, or promoter group entities. Consequently, no special benefits accrue to the promoters or group companies as a result of this restructuring.

Change in Shareholding Pattern

The restructuring altered the ownership structure of APTPL while leaving the shareholding pattern of Ashoka Buildcon unchanged. The details of the shift are outlined below:

Following the transaction, the financial statements of APTPL will no longer be consolidated with those of Ashoka Buildcon. Instead, the investment will be accounted for as an investment in an associate company in accordance with applicable accounting and regulatory requirements. The disclosure was made to the BSE Limited and National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Ashoka Buildcon Limited has reported its audited standalone and consolidated financial results for the year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 21, 2026. The statutory auditors, M/s SRBC & Co. LLP, issued an unmodified opinion on the financial statements. The company submitted a declaration to the stock exchanges confirming that the audit report dated May 21, 2026, carries an unmodified opinion on the Annual Audited IND AS Financial statements for the financial year ended March 31, 2026, in accordance with Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Subsequently, the company published the audited financial results in 'Free Press Journal' and 'Punyanagari' on May 23, 2026, as required under Regulation 30 and 47(3) of the SEBI (LODR) Regulations, 2015.

Q4 Consolidated Performance

On a quarterly basis, Ashoka Buildcon's consolidated performance reflected a year-on-year decline across key metrics. Q4 consolidated net profit stood at ₹ 14,680.72 Lakhs, compared to ₹ 45,167.64 Lakhs in the same quarter of the previous year. Revenue for Q4 came in at ₹ 1,95,430.31 Lakhs versus ₹ 2,69,441.62 Lakhs in the corresponding period last year.

The Q4 EBITDA stood at ₹ 17,286.50 Lakhs against ₹ 48,127.56 Lakhs in the year-ago quarter, with EBITDA margin contracting to 8.85% from 17.86% on a year-on-year basis.

Standalone Financial Performance

For the year ended March 31, 2026, the company reported a Profit After Tax (PAT) of ₹ 32,043.65 Lakhs, compared to ₹ 19,724.39 Lakhs in the previous year. Revenue from operations for the year stood at ₹ 5,81,165.66 Lakhs. The company recognized exceptional items amounting to a net gain of ₹ 16,472.46 Lakhs during the year, primarily from the sale of investments in subsidiaries and the reversal of obligations towards investors.

Consolidated Financial Performance

On a consolidated basis, the company reported a PAT of ₹ 2,57,580.19 Lakhs for the year ended March 31, 2026, a significant increase from ₹ 1,73,356.87 Lakhs in the previous year. Total consolidated income for the year was ₹ 7,70,356.90 Lakhs. The consolidated results included exceptional items totaling a net gain of ₹ 2,14,367.03 Lakhs, largely driven by the sale of stake in HAM and BOT subsidiaries.

Business Developments and Guidance

During the earnings call held on May 22, 2026, management highlighted FY26 as a transition year marked by a focus on execution quality and financial discipline. The company secured new orders including a project in the Kingdom of Saudi Arabia valued at INR1,800 crores (company share INR900 crores) and a contract in Angola valued at USD72 million. As on March 31, 2026, the balance order book stood at INR15,312 crores, excluding orders received post-March 31, 2026.

Management provided guidance for FY27, targeting revenue growth of 20% and order inflow between INR8,000 crores and INR10,000 crores. EBITDA margins are expected to be in the range of 9.5% to 10.5%. The company continues to progress on the monetization of 6 HAM SPVs, with 4 assets targeted for monetization by June 2026, expected to bring in cash of around INR750-plus crores, and the balance by December 2026.

Board Decisions

Along with the financial results, the Board appointed M/s Hiran Surana, Chartered Accountants, Nashik and M/s Suresh Surana & Co., Chartered Accountants, Mumbai as Joint Internal Auditors for FY 2026-27. Additionally, M/s S. R. Bhargave & Associates, Cost Accountants, Pune, were appointed as Cost Auditors for the fiscal year 2026-27.