Ashoka Buildcon Limited reported mixed financial results for Q3 FY26, with standalone revenue declining but profitability showing strong improvement amid a major asset monetization initiative. The infrastructure company completed significant portfolio restructuring during the quarter while securing new project orders.

Financial Performance Overview

The company's standalone financial performance for Q3 FY26 showed contrasting trends across key metrics:

For the nine months ended December 31, 2025, total income stood at INR4,134 crores compared to INR5,175 crores in the corresponding period of FY25, representing a 20% decline. However, EBITDA margin improved significantly to 11.30% from 9.50% in 9M FY25, an improvement of 180 basis points. PAT for nine months surged 97% YoY to INR272 crores.

Major Asset Monetization Initiative

Ashoka Buildcon achieved a significant milestone in November 2025 with the completion of its largest asset sale. The company's subsidiary, Ashoka Concessions Limited, sold its entire stake in five BOT SPVs to Maple Infrastructure Trust for an aggregate consideration of INR1,814 crores.

Following this transaction, Ashoka Buildcon Limited acquired equity shares in Ashoka Concessions Limited for INR667 crores, resulting in full acquisition of securities previously held by Macquarie SBI Infrastructure Funds. This consolidates control and simplifies the ownership structure, making ACL a 100% subsidiary.

Order Book and New Project Wins

The company secured several significant project orders during the quarter, strengthening its order book position:

As of December 31, 2025, the balance order book stands at INR15,927 crores, with an additional INR308 crores received post-December, bringing the current total to INR16,235 crores.

Segment-wise Order Book Composition

The order book demonstrates diversification across infrastructure segments:

Debt Reduction and Financial Position

The asset monetization strategy has significantly improved the company's financial position. Consolidated debt reduced from INR4,910 crores in September 2025 to INR2,722 crores in December 2025. Standalone debt comprises INR79 crores in equipment loans, INR300 crores in NCDs, and INR667 crores in working capital loans.

Management expects further debt reduction through the planned monetization of four HAM projects worth approximately INR750 crores by March 2026, and the remaining two projects valued at INR400 crores by June 2026.

Management Outlook and Guidance

Managing Director Satish Parakh highlighted the measured transition in the Indian highway sector, with government focus shifting toward quality, sustainability, and capital efficiency. The ministry targets approximately 11,000 kilometres of corridor-based development by FY27 and 15,000 kilometres by FY32.

CFO Paresh Mehta provided guidance for the upcoming periods:

The company maintains a current bid pipeline of approximately INR65,000 crores with NHAI, positioning it well for future growth as market conditions improve.

Ashoka Buildcon Limited has secured a major international project win with the approval of the Diriyah II project in Saudi Arabia. The infrastructure development company will execute this significant undertaking in partnership with BEC Arabia, marking another milestone in its international expansion strategy.

Project Details and Financial Impact

The Diriyah II project represents a substantial business opportunity for the company, with specific financial parameters clearly defined for the partnership arrangement.

Strategic Partnership and Market Expansion

The collaboration with BEC Arabia positions Ashoka Buildcon to leverage local expertise and market knowledge in the Saudi Arabian construction sector. This partnership approach enables the company to navigate the regional market dynamics while contributing its technical capabilities and project execution experience.

The Diriyah II project approval reinforces the company's strategy of pursuing high-value international infrastructure projects. Saudi Arabia's ongoing infrastructure development initiatives present significant opportunities for experienced construction and infrastructure companies with proven track records.

Business Implications

This project win adds substantial value to Ashoka Buildcon's order book, with the ₹846.38 crore contribution representing a significant addition to the company's revenue pipeline. The international project diversifies the company's geographical presence and reduces dependence on domestic market conditions.

The successful approval process demonstrates the company's competitive positioning in international tenders and its ability to meet stringent qualification criteria for major infrastructure projects in the Middle Eastern market.