Axis Trustee Services Limited has disclosed the encumbrance of 9,20,72,053 equity shares of Afcons Infrastructure , representing 25.03% of the company's total share capital. The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited on May 19, 2026, under Regulation 29 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Axis Trustee Services clarified that it does not hold any beneficial interest in the shares. The encumbrance was created in its capacity as the common security trustee for the benefit of debenture holders. The total equity share capital of Afcons Infrastructure stands at ₹3,67,78,46,310, consisting of 36,77,84,631 shares of face value ₹10 each.

Details of Encumbrance

The shares were encumbered by Goswami Infratech Private Limited (GIPL). GIPL owns 100% of the share capital of Afcons Infrastructure held by SP Finance Private Limited and SC Finance and Investments Private Limited. The pledge follows a debenture trust deed dated June 26, 2023, and subsequent amendments extending the trustee's role to include Capespan Investment Private Limited debentures.

Background and Previous Disclosures

A previous disclosure dated December 19, 2025, detailed an indirect encumbrance on the entire shareholding of GIPL in Afcons Infrastructure. The current disclosure highlights the creation of a direct pledge over 7,35,58,600 shares, constituting 20% of the shareholding. These shares were previously locked-in under SEBI regulations, and the lock-in was released prior to the pledge creation.

There is no change in the total number of shares encumbered compared to the previous disclosure, as the indirect encumbrance already covered the entire holding. The direct pledge was created on May 15, 2026, specifically for the 7,35,58,600 shares that were released from lock-in.

Afcons Infrastructure has retained its Buy rating from Nomura, with the brokerage setting a target price of ₹417, even as the company posted a weak operational performance in Q4FY26 and missed earnings expectations. While the near-term results fell short, Nomura's assessment underscores confidence in the company's longer-term growth trajectory, anchored by a strong order pipeline and improving inflow visibility.

Brokerage Stance and Target Price

Nomura's decision to maintain its Buy recommendation reflects a forward-looking perspective on Afcons Infrastructure's fundamentals. The brokerage has set a target price of ₹417, signalling meaningful upside potential from current levels. The key parameters supporting Nomura's rating are summarised below:

Q4FY26 Performance and Estimate Revisions

Afcons Infrastructure's Q4FY26 results were characterised by weak operational performance and an earnings miss relative to market expectations. In response to the softer-than-anticipated quarterly showing, Nomura has revised its earnings estimates downward for FY27 and FY28. Despite these cuts, the brokerage maintains that the medium-to-long-term earnings outlook remains intact, supported by structural demand drivers in the infrastructure sector.

Order Pipeline and Inflow Outlook

A central pillar of Nomura's positive thesis is Afcons Infrastructure's substantial order pipeline. The company boasts a robust pipeline of ₹4 trillion, which provides significant revenue visibility over the coming years. Additionally, Nomura expects order inflows of ₹300 billion in FY27, reflecting continued momentum in project wins. These factors are seen as critical in sustaining the company's revenue and earnings growth over the medium term.

Valuation and Earnings Growth Outlook

Nomura has highlighted attractive valuations as a key reason to maintain the Buy rating, suggesting the stock offers a compelling entry point relative to its long-term earnings potential. The brokerage projects a 37% EPS CAGR over FY26–29, indicating strong expected earnings compounding despite the near-term headwinds. The combination of a large order book, healthy inflow expectations, and an attractive valuation profile forms the basis of Nomura's constructive outlook on Afcons Infrastructure.