Ashoka Buildcon (ASHOKA) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 execution was muted due to extended monsoon and competition, but toll collections rose 15% in volume and 23% in value during July-August 2025.

• The company secured two major electrification contracts from North Western Railway worth over Rs. 1,000 crore each, enhancing order book visibility and technical credibility.

• Sale of five HAM SPVs for INR 1,146 crore and strategic stake increases in toll subsidiaries reflect a focus on value unlocking and balance sheet strengthening.

• Order book stood at Rs. 14,888 crore as of September 30, 2025, with a diversified segment and regional mix.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Standalone Q2 FY2026 total income was INR 1,303 crore, down 11% year-on-year; EBITDA was INR 160 crore, flat year-on-year, with margin improvement to 12.3%.

• Q2 FY2026 PAT rose to INR 139 crore from INR 36 crore in Q2 FY2025, up 284% year-on-year, driven by exceptional gains.

• H1 FY2026 standalone income was INR 2,642 crore, down 21% year-on-year; EBITDA margin improved to 11.8%.

• Consolidated Q2 FY2026 income was INR 1,908 crore, down 25% year-on-year; EBITDA was INR 642 crore, down 32% year-on-year, with margin at 33.6%.

• Exceptional items included a gain of INR 112 crore (standalone) and a loss of INR 219 crore (consolidated) due to sale/divestment of subsidiaries.

Outlook and guidance

• Revenue for FY2026 expected to be flat year-on-year, with H2 requiring 18-19% growth to match last year’s EPC turnover.

• Order inflow guidance for H2 is INR 6,000-7,000 crore, targeting total annual addition of INR 9,000-10,000 crore.

• EBITDA margin guidance for FY2026 and FY2027 is 10-11%.

• Revenue growth of 10-15% targeted for FY2027, contingent on order inflow.

• Management expects ongoing legal matters will not materially impact financial results and expects continued compliance with contractual obligations.