Financial Performance Overview

Afcons Infrastructure Limited reported consolidated financial results for FY 2025-26 with revenue from operations declining 4.8% to ₹12,322.10 crores from ₹13,022.77 crores in FY25. Profit after tax decreased significantly by 48.5% to ₹250.74 crores from ₹486.79 crores. On a standalone basis, revenue stood at ₹12,308.38 crores with net profit of ₹289.90 crores. The company recognized an exceptional item of ₹76.51 crores for incremental impact of new Labour Codes on retiral benefits. Basic and diluted EPS declined to ₹6.82 from ₹13.24 in the previous year.

Operational and Business Performance

The company maintained a strong order book position of ₹32,496 crores as of March 31, 2026, and secured new orders worth ₹4,125 crores during the year. Business verticals included Urban Infrastructure (51%), Hydro & Underground (23%), Marine & Industrial (15%), Surface Transport (9%), and Oil & Gas (2%). Key operational achievements included commissioning HRRL Crude Oil Terminal at Mundra, operationalizing Central Silk Board double-decker corridor in Bengaluru, progressing metro projects in Agra and Kanpur, and inaugurating Nagpur-Mumbai Samruddhi Mahamarg Package 14.

Capital Structure and Borrowings

Total borrowings increased significantly to ₹3,556.36 crores from ₹2,250.99 crores, with gearing ratio rising to 0.56 from 0.33. The company maintained credit ratings of CRISIL AA-/Stable for bank facilities and NCDs, and CRISIL A1+ for Commercial Papers. Fund raising activities included issuance of NCDs aggregating ₹50 crores and raising ₹390 crores through Commercial Papers, with ₹200 crores outstanding as of March 31, 2026.

Corporate Governance and Leadership

The Board comprises 12 Directors (3 Executive, 6 Independent, 3 Non-Executive Non-Independent). Key management changes included Mr. Shapoorji Pallonji Mistry stepping down as Chairman and becoming Chairman Emeritus, with Mr. Subramanian Krishnamurthy elevated to Executive Chairman. The company implemented ESOP 2025 with pool of 1,83,89,232 options, granting 1,02,81,931 ESOPs in two tranches during the year.

Legal and Arbitration Matters

The company disclosed multiple significant arbitration cases including an unfavorable award from ONGC for Afcons Gunanusa Joint Venture with most claims rejected, resulting in provision for doubtful debtors of ₹124.12 crores. Ongoing disputes with Chennai Metro Rail Limited regarding packages UAA-01 and UAA-05, with arbitration awards of ₹120.81 crores recognized as receivables. The Dahej Standby Jetty Project received unfavorable arbitration award for liquidated damages of ₹79.28 crores, with matter pending in Delhi High Court. However, the Chenab Bridge Project received favorable arbitration award of ₹243.53 crores.

Dividend and Corporate Actions

The Board recommended final dividend of ₹2 per equity share for FY 2025-26, with dividend outlay of ₹73.56 crores. Record date was set for July 23, 2026, with payment on or before August 28, 2026. The 50th Annual General Meeting agenda included adoption of financial statements, dividend declaration, reappointment of directors, and approval for issuance of Non-Convertible Debentures up to ₹250 crores.

ESG and Sustainability Reporting

The company published comprehensive Business Responsibility and Sustainability Report with 43% of revenue attributable to green business activities. Total energy consumption was 16,24,174.37 GJ, total waste generated 1,83,757.34 MT, and total water withdrawal 20,74,800 KL. CSR expenditure was ₹4.144 crores, focused on education and healthcare initiatives. The company reported 100% coverage under various policies including Code of Conduct, POSH, and Whistle Blower, with no instances of corruption or human rights violations.

Related Party Transactions and Subsidiaries

Significant related party transactions included ₹104.41 crores outstanding with Shapoorji Pallonji & Company Private Limited and ₹296.17 crores with Shapoorji Pallonji Infrastructure Capital Company. The group has 12 subsidiaries (including foreign and step-down subsidiaries), 1 Joint Venture Company, and 14 unincorporated Joint Ventures. Afcons Singapore Pte. Ltd. was identified as material subsidiary.

Outlook and Risk Factors

The company faces exposure to foreign currency risk (particularly USD, EURO, BDT, GHS, XAF currencies), interest rate risk, and credit risk. Despite challenging operational environment, the company maintains strong order book with approximately 40% of unsatisfied performance obligations expected to be recognized as revenue in next 12 months. Ongoing legal proceedings and arbitration cases represent significant contingent liabilities totaling ₹1,315.61 crores.