Ashoka Buildcon (ASHOKA) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw a 30% year-on-year decline in standalone revenue to INR 1,339 crore, mainly due to early monsoon and delayed project mobilization, while consolidated revenue fell 22% to INR 1,937 crore; however, consolidated PAT rose 44% to INR 227 crore and EBITDA margin improved significantly.

• Major international contract secured in Guyana ($67 million), with new domestic orders in railways and intelligent traffic management systems, strengthening the order book and diversifying the portfolio.

• Strategic restructuring included the sale of a 51% stake in Prakashmaan Renewable Energy and transfer of 16 subsidiaries to a wholly owned entity.

• Asset monetization of BOT and HAM projects is progressing, with significant cash inflows and debt reduction expected by September 2025.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved and reviewed by the Audit Committee and Board, with auditors issuing unmodified review reports.

Financial highlights

• Standalone Q1 FY26 total income: INR 1,339 crore (down 30% YoY); EBITDA: INR 151 crore (up 4% YoY, margin 11.3%); PAT: INR 31 crore (down 25% YoY, margin 2.3%).

• Consolidated Q1 FY26 total income: INR 1,937 crore (down 22% YoY); EBITDA: INR 649 crore (up 3% YoY, margin 33.5%); PAT: INR 227 crore (up 44% YoY, margin 11.7%).

• Standalone operating margin for Q1 was 9.33%, net profit margin 2.34%; consolidated operating margin 31.74%, net profit margin 12.02%.

• Standalone debt as of June 30, 2025: INR 1,652 crore; consolidated debt: INR 6,826 crore.

• Gross toll collection for Q1 FY26 grew 13% YoY to INR 362 crore.

Outlook and guidance

• Revenue growth guidance for FY26 is 10-12%, with Q3 and Q4 expected to see significant execution ramp-up.

• EBITDA margin is expected to be maintained at Q1 levels (around 11%).

• Order inflow guidance for FY26 is INR 10,000-12,000 crore, with strong opportunities in roads, railways, and power segments.

• Order book stood at INR 15,886 crore as of June 30, 2025, with a diversified segment and regional mix.

• Management expects no material impact from ongoing regulatory matters and is proceeding with legal remedies.