AVP Infracon Limited has submitted the transcript of its earnings conference call held on Saturday, May 23, 2026, at 11:00 AM IST. The submission was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following the publication of its audited financial results for the year ended March 31, 2026. The management discussed the factors impacting profitability in FY26, including a rise in bitumen prices and increased finance costs, while providing guidance for the upcoming financial year.

Financial Performance and Margins

For the year ended March 31, 2026, the company reported a turnover of INR440 crores, with an additional INR70 crores to INR80 crores of unbilled revenue. Management attributed the compression in PAT and EBITDA margins to three primary factors: a temporary spike in bitumen prices due to geopolitical tensions, increased finance costs due to debt taken to support turnover, and the timing of billings. Despite achieving execution levels of INR500 crores, the company could not book the entire amount due to unbilled revenue.

Looking ahead, the company aims to maintain a PAT margin of 9% to 10%. Management expressed confidence that 10% is achievable and sustainable, even amidst rising input costs, supported by government notifications regarding price escalation clauses.

Order Book and Revenue Guidance

AVP Infracon has guided for a revenue target of INR700 crores in FY27. The current unexecuted order book stands at approximately INR500 crores. To achieve this growth, the company plans to raise funds through equity or debt. Management indicated that while an equity raise is preferred, it will not dilute shares at current market prices and will utilize debt if necessary until valuations improve.

The company is currently focused on orders within Tamil Nadu but has started bidding for projects outside the state. It is also targeting orders of INR100 crores and above, with a capacity to execute projects up to INR300 crores.

Debt and Funding Strategy

The total consolidated debt stands at INR234 crores, with standalone debt at INR206 crores. This includes INR140 crores of cash credit limits, INR48 crores to INR50 crores of term loans for machinery, and INR15 crores to INR18 crores of unsecured interest-free loans from promoters. The company plans to reduce this debt through proceeds from a planned equity raise and the subscription of warrants by the promoter. The debt-to-equity ratio is currently 1.23, and management aims to keep it below 1.5.

Operational Updates and New Verticals

The company is expanding into new verticals, including solar EPC and pre-engineered buildings (PEB). It has secured its first order in solar EPC and is currently working on approvals. In the PEB segment, the company is targeting smaller orders to build qualifications. Management also noted that it is in discussions with auditors to migrate to the Ind AS accounting system, which will impact the recognition of unbilled revenue and working capital cycles.

Conference Call Details

The transcript of the earnings conference call is available for stakeholders.

Management Participants

AVP Infracon Limited has disclosed the creation of an encumbrance on shares held by its promoter, Mr. B. Venkateshwarlu, during the financial year ended March 31, 2026. The declaration was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The Joint Managing Director pledged 22,47,192 shares on March 27, 2026. The company confirmed that, aside from this specific transaction, no other promoters or members of the promoter group created any encumbrances on the company's shares during the financial year. Additionally, there were no instances of encumbrance release reported during this period.

The disclosure was submitted by D. Prasanna, a promoter of the company, on behalf of the promoters and promoter group. The letter confirmed that the details provided are accurate to the best of their knowledge and belief.

Promoter and Promoter Group Details

The company provided a comprehensive list of its promoters and promoter group members in the disclosure. The list includes key individuals associated with the firm's management and ownership structure.