Afcons Infrastructure Limited has successfully completed the full utilization of its Initial Public Offering (IPO) proceeds worth ₹12,500.00 million, according to the final monitoring agency report submitted to BSE and NSE for the quarter ended December 31, 2025. The comprehensive report, prepared by CRISIL Ratings Limited as the appointed monitoring agency, confirms that all funds have been deployed as per the original offer document without any material deviations.

IPO Proceeds Allocation and Utilization

The company's IPO, conducted from October 25-29, 2024, raised gross proceeds of ₹12,500.00 million through fresh equity shares. After accounting for issue expenses of ₹353.63 million, the net proceeds available for utilization stood at ₹12,146.37 million.

Monitoring Agency Assessment

CRISIL Ratings Limited, in its final monitoring report, confirmed several key compliance aspects:

• All utilization aligned with disclosures in the offer document
• No major deviations observed from earlier monitoring reports
• No unfavorable events affecting the viability of stated objects
• General corporate purpose utilization remained within the 25% regulatory limit

Fund Deployment Timeline

The utilization pattern demonstrates the company's systematic approach to fund deployment. The debt repayment and working capital requirements were addressed first, completed by December 31, 2024, followed by general corporate purposes by March 31, 2025, and finally construction equipment purchases by September 30, 2025.

Regulatory Compliance

The final monitoring report was submitted pursuant to Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41(4) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was certified by HDS & Associates, LLP, the company's joint statutory auditors, on January 22, 2026.

With the complete utilization of IPO proceeds, Afcons Infrastructure has fulfilled its commitments to investors and regulatory authorities, positioning the company to leverage the enhanced financial resources for its civil construction business operations.

Afcons Infrastructure Limited conducted its Q3 FY26 earnings conference call on February 11, 2026, providing detailed insights into the company's financial performance and operational challenges. The call was hosted by DAM Capital Advisors and featured key management personnel including Executive Chairman Subramanian Krishnamurthy, Managing Director Paramasivan Srinivasan, CFO Ramesh Kumar Jha, and Head of Corporate Strategy Hitesh Singh.

Financial Performance and Key Metrics

The management reiterated the company's Q3 FY26 financial results during the earnings call:

For the nine-month period, total income stood at ₹9,545 crore with EBITDA of ₹1,269 crore, representing a margin of 13.3%. The company reported exceptional items of ₹76.51 crore related to new Labour Code provisions implemented by the Government of India.

Order Book Status and L1 Position Updates

The company maintains a robust order book of ₹32,635 crore with recent additions including marine contracts worth ₹1,400 crore and a road project exceeding EUR 100 million in Uganda. However, significant developments emerged regarding L1 positions:

Management expressed confidence in achieving the annual order inflow guidance despite delays in L1 conversions. The Croatia railway project, being the largest contract ever awarded by Croatia, is at an advanced stage with all government approvals completed.

Operational Challenges and Execution Issues

Several factors impacted the company's execution during Q3 FY26. The Jal Jeevan Mission projects in Uttar Pradesh continue to face payment delays, with outstanding amounts of ₹405 crore and a balance order book of ₹530 crore. Management noted some improvement in January with ₹15 crore received, but cautioned about the overall situation.

The high-speed rail project faces continued delays with the second consignment of Tunnel Boring Machine (TBM) still awaiting clearance from concerned ministries. However, other components of the project have achieved 30% completion, with NATM tunneling and related works progressing well.

Arbitration Awards and Financial Impact

The company received a significant arbitration award of ₹165 crore related to the Chenab Bridge project during the quarter. Management clarified that approximately 23-24% of this amount flows to EBITDA, with the remainder covering associated costs. An additional ₹115 crore related to the same project remains under arbitration proceedings.

International Operations and Gabon Project

A notable development involved the encashment of a bank guarantee worth ₹191 crore equivalent in the Gabon project. The company explained that this relates to a PPP project with the Gabonese government where more than 90% work is completed. ICC arbitration has commenced, and management expressed confidence in recovering the amount through the arbitration process.

Growth Outlook and Management Commentary

Despite execution challenges, management maintained optimism about achieving 5% revenue growth for FY26, with 10% growth still possible. Executive Chairman Krishnamurthy highlighted the company's recognition as the Most Innovative Knowledge Enterprise for the eighth consecutive year and CII's Grand Award for being the most innovative company across all sectors.

The company's bid pipeline remains robust at ₹3.8 trillion spread across multiple geographies, with 35% in urban infrastructure, 30% in hydro and underground, 20% in marine and industrial, and 15% in surface transport. Management expects normalization of execution pace as pending approvals and scope changes get resolved.