Afcons Infrastructure Adjusts Growth Forecast Amid Project Delays and Payment Challenges

Afcons Infrastructure , a leading infrastructure construction company, has revised its revenue growth guidance for FY26 from 20% to 10% due to project delays and payment challenges. The company reported a modest 3.4% year-on-year revenue growth to INR 6,520.00 crores in H1 FY26, with an improved EBITDA margin of 13%.

Financial Performance

For the first half of FY26, Afcons Infrastructure's financial results were as follows:

Metric	H1 FY26	YoY Growth
Revenue	INR 6,520.00 crores	3.4%
EBITDA	INR 846.00 crores	6.0%
PAT	INR 242.00 crores	7.0%

The company's EBITDA margin improved by 30 basis points to 13% in H1 FY26.

Challenges and Growth Revision

Srinivasan Paramasivan, Managing Director of Afcons Infrastructure, cited several factors for the revised growth outlook:

Delayed conversion of L1 orders, particularly in Maharashtra
Payment issues in projects like the Jal Jeevan Mission
Slowdown in Indian-funded projects abroad due to repayment defaults by some countries

The company has taken a cautious approach, even stopping work and demobilizing from some projects due to payment uncertainties.

Order Book and Pipeline

Despite the challenges, Afcons Infrastructure maintains a strong order book of INR 32,681.00 crores. The company has a robust project pipeline of around INR 3.60 trillion, with significant opportunities in urban infrastructure, hydro, and underground projects.

Key highlights of the order pipeline include:

Urban Infrastructure: INR 1.60 lakh crores
Hydro and Underground (including waterworks): INR 94,000.00 crores
Surface Transport (roads and rail): INR 65,000.00 crores
Marine and Industrial: INR 43,000.00 crores

The company expects to achieve its INR 20,000.00 crores order inflow target for the year, with major projects like the Croatia Railway and Vadhvan Port breakwater in the pipeline.

Future Outlook

Despite the near-term challenges, Afcons Infrastructure remains optimistic about its long-term prospects. The company is actively pursuing opportunities in the Middle East and Africa, and expects an uptick in domestic infrastructure spending in the second half of the fiscal year.

Ramesh Kumar Jha, CFO, stated that the company expects to maintain its EBITDA margin above the earlier guidance of 11% for the full year, given the strong performance in H1.

As Afcons Infrastructure navigates through these challenges, it continues to focus on operational excellence and prudent risk management to capitalize on emerging opportunities both in India and overseas.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.19%	-7.76%	-9.58%	-13.58%	-13.89%	-15.06%

Afcons Infrastructure Limited , a prominent player in the infrastructure sector, has announced the issuance of Commercial Papers (CPs) worth Rs. 30 crores on November 14, 2025. This move demonstrates the company's strategic approach to short-term financing and liquidity management.

Key Details of the Commercial Paper Issuance

Particulars	Details
Issue Size	Rs. 30 Crores
Listing	Proposed to be listed on the National Stock Exchange of India Limited
Tenure	131 days
Date of Allotment	November 14, 2025
Date of Maturity	March 25, 2026
Interest Rate	7.50% per annum
Payment Schedule	Interest paid upfront, principal on maturity
Security	Unsecured
Credit Rating	CRISIL A1+

Implications and Outlook

The issuance of these Commercial Papers highlights Afcons Infrastructure's ability to access short-term funding at competitive rates. The CRISIL A1+ rating assigned to these instruments indicates a strong degree of safety regarding timely payment of financial obligations, reflecting positively on the company's credit profile.

The unsecured nature of these CPs and the interest rate of 7.50% per annum suggest a high level of confidence from investors in Afcons Infrastructure's financial stability and repayment capacity. This issuance may provide the company with increased financial flexibility to manage its working capital needs or fund short-term projects.

As per the disclosure, the company plans to repay the principal amount on the maturity date, March 25, 2026. This structured approach to debt management aligns with prudent financial practices, potentially contributing to the company's overall fiscal health.

Investors and market watchers may view this development as an indicator of Afcons Infrastructure's proactive financial management and its standing in the debt market. As the infrastructure sector continues to play a crucial role in India's economic growth, such financial maneuvers by key players like Afcons Infrastructure warrant attention from both the investment community and industry observers.