Ashoka Buildcon Limited

Industry Environment Overview

  • Q2 FY27 commenced positively for infrastructure sector with increased domestic highway project awards
  • NHAI awarded 2,236.3 km of national highways during April-September FY27, up 62.9% YoY
  • NHAI plans to award 5,200 km in FY27, up 66% compared to last year
  • Construction activity remained under pressure with April-September construction at 2,069 km, down 18%
  • Union Budget provided record capital expenditure allocation of ₹2.93 lakh crore to railway sector
  • Government announced seven new high-speed rail corridors covering 4,000 km with estimated investment of ₹16 lakh crore

Business Developments (Q2 FY27)

  • Received LOA from RVNL for new BG rail line in Uttarakhand worth ₹602 crores (including GST)
  • Received LOA from REC Power Development for 400/220/132 KV lines in Sakoli district, Bhandara (TBCB project) with 24-month completion period and 35-year O&M period
  • This represents company's first-ever Tariff-Based Competitive Bidding (TBCB) project in transmission sector

Updates Post Q2 FY27

  • Received LOA from North Eastern Railway for project worth ₹290 crores (including GST)
  • Received Commercial Operation Date (COD) for NHAI project for four-laning of Tumkur-Shivamogga HAM project in Karnataka for balance 45.05 km
  • Third provisional COD received for NHAI project for four-laning from Tumkur to Shivamogga for 4.22 km after de-scoping by NHAI
  • No portfolio streamlining developments in the quarter

Order Book Status (as of September 30, 2026)

  • Total order book: ₹15,964 crores
  • Orders received post-September 30: ₹1,257 crores
  • Total balance order book: ₹17,222 crores
  • Breakdown:
  • Roads and railway projects: ₹9,275 crores (58% of total)
  • HAM projects: ₹1,436 crores
  • EPC: ₹6,173 crores
  • Power T&D: ₹3,820 crores (23.93%)
  • Building EPC: ₹941 crores (5.9%)
  • Subsidiaries and associate companies: ₹1,928 crores (12.08%)

New Orders (after October 1, 2026)

  • ₹391 crores received
  • L1 bidder for Vadodara-Mumbai Expressway package nine worth ₹866 crores

Financial Performance (Standalone)

Q2 FY2027:

  • Total Income: ₹1,356.24 crores (vs ₹1,302.62 crores in Q2 FY2026)
  • EBITDA: ₹133.94 crores
  • EBITDA Margin: 9.88%
  • PAT: ₹37.96 crores (vs ₹139.18 crores in Q2 FY2026 which included exceptional items of ₹112 crores)

Revenue Contribution by Segment (Q2 FY2027):

  • Road EPC: 51.2%
  • Road HAM: 8.6%
  • Power T&D: 22.94%
  • Railways: 13.57%
  • Building EPC and others: 3.69%

H1 FY2027:

  • Total Income: ₹2,676.68 crores (vs ₹2,641.73 crores in H1 FY2026)
  • EBITDA: ₹259.47 crores
  • EBITDA Margin: 9.69%
  • PBT: ₹94.46 crores
  • PAT: ₹69.50 crores (vs ₹169.8 crores in H1 FY2026)

Financial Performance (Consolidated)

Q2 FY2027:

  • Total Income: ₹1,609.21 crores (vs ₹1,907.88 crores in Q2 FY2026, down 15%)
  • EBITDA: ₹314.67 crores
  • EBITDA Margin: 19.55%
  • PAT: Negative ₹118.96 crores

BOT Division Performance

  • Gross toll collection from Jaora-Nayagaon Toll Road Company: ₹73.5 crores in Q2 FY2027

Q&A Session Highlights

Order Inflow Details:

  • Q1 FY27 order intake: ₹362 crores
  • Q2 FY27 order intake: ₹1,966 crores
  • October 2026 order intake: ₹391 crores + ₹866 crores (L1) = ~₹1,200 crores

Capex and Equity Investment:

  • Capex YTD: ₹62 crores
  • Full-year capex target: ₹125 crores
  • Equity to be invested in HAM projects: ₹340 crores
  • 2026-2027: ₹153 crores
  • 2027-2028: ₹114 crores
  • 2028-2029: ₹72 crores
  • Equity infused in H1: ₹68 crores

HAM Monetization Plan:

  • Four HAM projects to be monetized by December 2026
  • Two additional HAM projects (Basawantpur and Tumkur-Shivamogga 4) expected in Q4 FY27 or Q1 FY28
  • Total expected proceeds: ~₹1,000 crores
  • First tranche: ~₹600 crores
  • Remaining: ~₹400 crores

Debt Position and Targets:

  • Current total debt: ₹2,781 crores
  • Post-monetization debt target: ₹2,000 crores (split: ₹800 crores project debt, balance working capital)
  • Standalone debt target for March 2027: ₹600-700 crores
  • Current standalone debt breakdown: ₹1,169 crores lenders' debt, balance inter-company

Margin and Revenue Guidance:

  • Expect margins to improve by 1.5% by year-end
  • H2 FY27 EBITDA margin guidance: 9-9.5%
  • Long-term average EBITDA margin target: 10-10.5%
  • FY27 revenue growth guidance: ~10% (₹6,600 crores)
  • 3-year CAGR target: 15%

Order Inflow Guidance:

  • FY27 order inflow target: ₹3,000-5,000 crores (beyond October receipts)

BOT Stake Sale Update:

  • Received approximately ₹1,700 crores from BOT stake sale
  • Additional ₹20 crores received in last two quarters
  • Expect ₹15 crores by March 2027, with some deferred amounts based on toll collection over next 2-3 years
  • Pursuing sale of Chennai ORR and Jaora-Nayagaon projects

Bid Pipeline:

  • Total bid pipeline: ₹51,000 crores (includes NHAI, MoRTH, railways, states)
  • Bids worth ₹8,000 crores (170 km) yet to be opened

Business Strategy:

  • Open to BOT projects with manageable traffic risk
  • Focusing on railways, metros, TBCB, and international markets
  • Current domestic/overseas mix: 90/10
  • Target mix: 80/20
  • International expansion focusing on 6-7 countries across roads, railways, transmission, and distribution

Closing Remarks

Management thanked attendees and wished Happy Diwali and prosperous New Year, offering availability for one-on-one queries.