Afcons Infrastructure Limited , a flagship company of the Shapoorji Pallonji Group, has announced securing Engineering, Procurement and Construction (EPC) orders worth Rs 884.00 crore in November. These orders, received in the normal course of business, are for civil infrastructure works under the company's Marine and Industrial Business Unit.

Order Details

Company Profile

Afcons Infrastructure Limited, with a legacy spanning over six decades, has established itself as a leading player in the infrastructure engineering and construction sector. The company has a strong track record of executing technologically complex EPC projects both in India and internationally.

Global Rankings

According to the latest ENR survey, Afcons holds impressive positions in global rankings:

This new order further solidifies Afcons' position in the infrastructure sector and demonstrates the company's continued ability to secure significant projects. The focus on marine and industrial infrastructure aligns with the company's expertise and global recognition in these areas.

As the infrastructure sector continues to play a crucial role in India's economic development, companies like Afcons are well-positioned to contribute to and benefit from the growth in this sector. However, it's important for investors to monitor the execution of these projects and their impact on the company's financial performance in the coming quarters.

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:

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:

1. Delayed conversion of L1 orders, particularly in Maharashtra
2. Payment issues in projects like the Jal Jeevan Mission
3. 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.