Ashoka Buildcon , a leading infrastructure development company, has reported mixed financial results for the first quarter, with a decline in revenue but improved profit margins.

Financial Performance

The company's standalone total income for Q1 declined by 30% year-on-year to ₹1,339.00 crores. Despite the revenue drop, Ashoka Buildcon managed to improve its EBITDA margin to 11.3% from 7.6% in the previous year, demonstrating enhanced operational efficiency.

On a consolidated basis, the total income decreased by 22% to ₹1,937.00 crores. However, the company's profit after tax (PAT) increased significantly by 44% to ₹227.00 crores, with the PAT margin expanding to 11.7%.

Segment-wise Performance

The company's revenue contribution for Q1 was diverse:

Order Book and New Projects

As of June 30, Ashoka Buildcon's order book stands at ₹15,886.00 crores. The company secured new projects worth ₹2,022.00 crores in Q1, including:

1. A USD 67 million (approximately ₹555.00 crores) project in Guyana for Phase 2 of the East Bank-East Coast Road Linkage Project.
2. A ₹568.00 crore railway EPC project from Central Railway for gauge conversion from Pachora to Jamner in Maharashtra.
3. Contracts worth ₹1,387.00 crores from the Motor Vehicles Department, Maharashtra, for implementing intelligent traffic management systems across five major circles.

Asset Monetization and Debt Reduction

The company is progressing with its asset monetization plans, which include:

• The sale of five BOT (Build-Operate-Transfer) projects to Maple Infrastructure Trust, expected to close by September 30.
• Monetization of 11 HAM projects, with the first five set to be completed by September.

These transactions are anticipated to significantly reduce the company's debt. The management expects to bring down the standalone debt from the current ₹1,652.00 crores to around ₹500.00-600.00 crores post-monetization.

Future Outlook

Despite the revenue decline in Q1, Ashoka Buildcon's management remains optimistic about the future:

• The company expects 10-12% revenue growth for the full fiscal year, with stronger execution anticipated in the second half.
• The order pipeline remains robust, with visibility of around ₹75,000.00 crores from NHAI and MoRTH projects.
• The company aims to secure new orders worth ₹10,000.00 to ₹12,000.00 crores in the fiscal year.

Satish Parakh, Managing Director of Ashoka Buildcon, commented on the results, stating, "We are confident of our growth trajectory, with Q3 and Q4 expected to show significant improvement in execution. Our focus remains on maintaining a sustainable EPC business across Roads, Highways, Railways, Power Transmission and Distribution, as well as Buildings."

As Ashoka Buildcon navigates through the current fiscal year, investors and industry observers will be keenly watching the company's execution of its order book and the progress of its asset monetization plans, which are expected to strengthen its financial position and support future growth initiatives.

Ashoka Buildcon Limited , a prominent player in the construction sector, has shared optimistic projections for its financial performance in the upcoming quarters of FY26. The company expects to maintain the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin levels achieved in Q1 FY26, forecasting margins between 9.5% and 10% for the forthcoming quarters.

Improved Margins from New Projects

The construction firm attributes its positive outlook to enhanced margins in its newer projects compared to older ones. This improvement suggests that Ashoka Buildcon has been successful in securing more profitable contracts, potentially through better pricing strategies or improved operational efficiencies.

Ambitious Order Inflow Guidance

In a demonstration of confidence in its market position and growth prospects, Ashoka Buildcon has set an ambitious order inflow guidance for FY26. The company is targeting new orders worth ₹10,000 to ₹12,000 crores for the fiscal year. This guidance indicates the company's aggressive stance towards expanding its project portfolio and market share in the construction sector.

Progress on Order Book

Ashoka Buildcon has already made significant headway towards its FY26 target, having secured orders worth ₹2,000 crores. This early progress represents approximately 16.67% to 20.00% of the lower and upper bounds of their guidance respectively, putting the company on a solid footing for achieving its full-year objectives.

Recent Earnings Call

The company recently held its earnings call for Q1 FY26 on August 12, 2025, as confirmed by the corporate filing. During this call, Ashoka Buildcon presented its unaudited standalone and consolidated financial results for the quarter ended June 30, 2025. The audio recording of this call has been made available on the company's website, demonstrating transparency in its communications with investors and analysts.

Outlook

Ashoka Buildcon's projections for sustained EBITDA margins and substantial order inflow targets reflect a positive outlook for the company's performance in FY26. The construction sector in India continues to be a critical driver of economic growth, and Ashoka Buildcon's confident stance suggests it is well-positioned to capitalize on market opportunities.

As the fiscal year progresses, investors and industry observers will likely keep a close watch on the company's ability to maintain its projected margins and achieve its order inflow targets, which could significantly impact Ashoka Buildcon's growth trajectory and market valuation.