Management Commentary

Industry Environment

Q1 FY27 started on a mixed note for infrastructure sector. Domestic highway awarding environment remains subdued with NHAI awarding only around 5 kilometers in June compared with 102 kilometers in May. Construction activity in June declined 32% year-on-year to around 274 kilometers. For first 2 months of FY27, construction stood at approximately 638 kilometers, 34% lower year-on-year.

Encouraging opportunities emerging in railways, power transmission, distribution and international infrastructure. Indian budget provided record capital expenditure allocation of approximately INR2.93 lakh crores to railway sector. Government announced 7 new high-speed rail corridors covering 4,000 kilometers with estimated investment potential of INR16 lakh crores.

Business Developments

  • Received letter of award from Central Housing and Planning Authority Guyana for 4 laning of Versailles-Parika Highway valued at USD 35.42 million (INR328 crores)
  • Joint venture received letter of award from Chhattisgarh State Industrial Development Corporation for development of Gems and Jewellery Park in Raipur under PPP mode with premium of INR112.4 crores (Ashoka holding 51% stake)
  • Diluted stake in Ashoka Purestudy Technologies Private Limited from 59% to 39.33% through preferential allotment

Order Book Status

As on June 30, 2026, order book stands at INR15,251 crores (excluding INR450 crore order received after June 30):

  • Road and railway: INR9,648 crores (63.3% of order book)
  • HAM projects: ~INR1,500 crores
  • EPC: ~INR6,780 crores
  • Railway: INR1,346 crores
  • Power T&D: INR5,066 crores (33.2% of order book)
  • Building EPC: INR536 crores (3.5% of order book)

Financial Performance

Standalone Q1 FY27 Results

  • Total income: INR1,320 crores (vs INR1,339 crores in Q1 FY26, flat YoY)
  • EBITDA: INR126 crores (down 17% YoY)
  • EBITDA margin: 9.5%
  • Profit after tax: INR31.5 crores (vs INR30.6 crores in Q1 FY26, up 3% YoY)

Revenue segment contribution:

  • Road EPC: 49.3%
  • Road HAM: 10.2%
  • Power T&D: 18.4%
  • Railway: 11.5%
  • Building EPC and others: 10.7%

Consolidated Q1 FY27 Results

  • Total income: INR1,534 crores (vs INR1,937 crores in Q1 FY26, down 21% YoY)
  • EBITDA: INR292 crores (down 55% YoY)
  • EBITDA margin: 19.0%
  • Profit after tax: INR127 crores

BOT Division

Gross total toll collection from Jaora-Nayagaon road project: INR75 crores (up 8% year-on-year)

Guidance Updates

Revenue Growth

Lowered FY27 revenue growth guidance from 20% to 10-15% due to supply chain uncertainties and flat Q1 performance

Order Inflow

Targeting INR6,000-8,000 crores order inflow for FY27. Already received INR780 crores in Q1 and L1 in INR1,800 crores expected to materialize in Q2.

EBITDA Margin

Revised FY27 EBITDA margin guidance to 9-9.5% (from previous expectation of ~10%) due to initial mobilization costs for new verticals.

HAM Equity Requirements

  • FY27: INR179 crores investment required for existing HAM projects including Bowaichandi
  • FY28: INR72 crores
  • FY29: INR72 crores
  • Total investment in six HAM projects up to June: INR638 crores

Asset Monetization Timeline

HAM Asset Sales

Revised timeline for 6 HAM asset monetization totaling approximately INR1,150 crores:

  • 4 assets expected to close by Q2 FY27 (September end/early October) with expected realization of ~INR700 crores
  • 2 assets expected to close by Q4 FY27 with small holdbacks of INR30-40 crores for compliance

BOT Asset Monetization

  • Chennai ORR: Potential monetization by year-end with effective cost of INR300 crores for 100% stake
  • Jaora-Nayagaon: Expected monetization by March end or next year first half with invested value of INR418 crores

Project Updates

  • Bowaichandi HAM: Appointed date expected in October first week, 15% work expected this year
  • Mithi River: Work has started
  • Guyana: Work ongoing
  • Angola: Expected to start in 2 months

Debt and Capital Structure

Current Debt Position

  • Total debt: ~INR2,100 crores
  • Interest cost to subsidiaries: INR17 crores for Q1
  • Third-party interest includes NCDs, working capital, term loans, equipment loans, and interest on mobilization advance

Post-Monetization Debt Target

  • Third-party debt target: INR500-600 crores
  • Total debt including subsidiaries: ~INR1,100-1,200 crores

Interest Cost Outlook

  • FY27 interest cost expected: INR225-240 crores (vs INR313 crores in FY26)
  • FY28 interest cost expected below INR200 crores

Working Capital and Capex

Working Capital

  • INR250 crores infused in working capital from March to June for new project mobilization
  • Power T&D collections expected to improve in next 2 quarters

Capital Expenditure

  • Q1 FY27 capex: INR25 crores (INR7 crores for international projects)
  • FY27 capex target: INR125 crores

Bid Pipeline

Total bid pipeline estimated at:

  • NHAI and MoRTH: ~INR1 lakh crores
  • States: ~INR25,000 crores
  • Railways: ~INR50,000 crores
  • Current bids submitted but not yet opened: ~INR8,000 crores

International Business

  • Q1 international revenue: INR145 crores (80% from Guyana)
  • Currently operating in 7 countries, planning to expand to 10 countries
  • Strategy focused on geographical diversification amid subdued domestic highway awarding