Afcons Infrastructure Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, alongside significant corporate governance developments approved by the Board of Directors on February 10, 2026.

Financial Performance Overview

The company delivered steady performance in Q3 FY26 with comprehensive financial metrics across standalone operations:

For the nine-month period ended December 31, 2025, the company reported revenue from operations of ₹9,324.70 crore compared to ₹9,281.37 crore in the corresponding period of the previous year, representing marginal growth of 0.5%. Profit after tax for the nine-month period stood at ₹352.94 crore versus ₹410.79 crore in the previous year.

Exceptional Items Impact

The company recorded exceptional items of ₹76.51 crore in Q3 FY26, attributed to the incremental impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and resulted in estimated incremental impact on retiral benefits. The company continues to monitor regulatory developments and assess accounting implications.

Major Corporate Developments

Promoter Group Reclassification

The Board approved the reclassification of 29 entities from 'Promoter Group' category to 'Public Shareholder' category, subject to regulatory approvals from BSE Limited and National Stock Exchange of India Limited. All 29 entities currently hold nil shares in the company:

Employee Stock Option Plan

During Q3 FY26, the company granted 1,01,71,230 employee stock options under the Afcons Infrastructure Limited - Employees Stock Option Plan 2025, demonstrating commitment to employee participation in company growth.

Arbitration Award Success

Afcons Infrastructure received a favorable arbitration award of ₹243.53 crore for the Chenab Bridge Project Undertaking. The company recorded revenue from operations of ₹165.62 crore and adjusted ₹77.91 crore from contract assets. The total award amount is classified as current trade receivables.

Operational Highlights

The company operates through 15 joint operations and maintains 20 international branches across Mauritius, Mozambique, Gabon, Zambia, Mauritania, Ghana, Bhutan, Bangladesh, Liberia, Tanzania, Kuwait, Maldives, Indonesia, Qatar, Ivory Coast, Jordan, Oman, Abu Dhabi, Bahrain, and Benin.

Legal and Arbitration Matters

The company continues to pursue various arbitration proceedings and legal matters related to project claims. Management remains confident about the recoverability of amounts recognized in contract assets and trade receivables, supported by legal opinions and technical evaluations, though outcomes remain subject to ongoing proceedings.

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.