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.

Afcons Infrastructure Limited has received formal requests from 29 entities currently classified as promoter group shareholders seeking reclassification to public shareholder status. The company informed stock exchanges BSE Limited and National Stock Exchange of India about these reclassification requests under Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Entities Seeking Reclassification

The 29 entities requesting reclassification from promoter group to public shareholder status include various property development companies, recreational services firms, and farm-related businesses. All requesting entities currently hold nil shares with nil percentage holding in Afcons Infrastructure Limited.

Key Requesting Entities

Notable entities among the 29 companies include:

• Shapoorji Pallonji Housing Infra Private Limited (formerly known as Dhan Gaming Solution (India) Private Limited)
• S D Corporation Holdings Private Limited (Previously known as S. D. New Samata Nagar Development Pvt Ltd)
• Multiple property development companies including Awesome Properties, Behold Space Developers, and Blessing Properties
• Farm-related entities such as Belva Farms, Filippa Farms, and Manor Stud Farm

Timeline and Next Steps

The reclassification requests were received on February 03, 2025, along with required justification and confirmation of facts as mandated under SEBI regulations. The company has scheduled a Board of Directors meeting for February 10, 2026, where these requests will be placed for consideration.

Regulatory Compliance

The reclassification process follows Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Gaurang Parekh (Membership No.: F8764) has formally communicated this development to both stock exchanges where Afcons Infrastructure is listed.

Following the Board meeting scheduled for February 10, 2026, the company will take necessary action based on the Board's decision regarding these reclassification requests. The outcome will determine the final classification status of these 29 entities in relation to Afcons Infrastructure Limited.